Attribute substitution, earlier-generation economic approaches and behavioural economics

ABSTRACT

The present paper examines attribute substitution in terms of both heuristics and attribution theory in social psychology. Alternative ‘old’ approaches in psychology were special because they considered choice in terms that were similar to attributional inference in social psychology and anticipated limitations of the static heuristics and biases approach. Attribute substitution plays an important role in reflective reasoning as an independent entity relative to rationality and produces good decisions, even those are sub-optimal and may be influenced by primitive processes such as intuition and habits. The attribute-substitution research enhances our understanding of intense shifts in economic expectations. It makes possible the conceptual incorporation of substantive theoretical constructions, which are inherent in psychological propensities of alternative, and mainly, heterodox approaches in economics such as Post Keynesian, Institutional and Austrian economics. This research agenda paves the way for possible forms of synthesis of those theories with behavioural economics.

KEYWORDS:

• Attribute substitution
• social psychology
• behavioural economics
• reflectivity
• heterodox economics

JEL CLASSIFICATIONS:

• B4
• B52
• B53
• E12
• D8
• D9
• D91
• Z2

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

Data sharing not applicable – no new data generated.

Additional information

Notes on contributors

Theodore Koutsobinas

Theodore Koutsobinas is currently a Professor of Economic Theory at the Program of Management of Culture Environment and New Technologies, School of Humanities and Social Sciences of University of Patras, Greece (at the assistant professor rank). His research interests include economic psychology and behavioural economics, Post Keynesian economics and finance, culture change, political economy and social inclusion. He has published over forty articles in Cambridge Journal of Economics, Journal of Economic Methodology, Review of Behavioral Economics, Journal of Post Keynesian Economics, Review of Political Economy, International Journal of Social Economics and in several other journals, book chapters and other publication outlets. He is also the author of the Political Economy of Status: Superstars, Markets and Culture Change, Edward Elgar Publishing, 2015. Prior to his current post, he taught at universities in Greece, Sweden and United Kingdom and had substantive executive experience. He holds a PhD in Economics from the New School, USA and he was a NATO post-doctorate fellow at Cornell University, USA.