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The article The Failure of Armchair Economics reveals the topic of scientific discoveries. The author of Scientific Discovery claims that the purpose of his work is to provide a comprehensive theory of the approaches that scientists use in their discoveries. In addition, an important task for the authors of the article was to find out whether the theory guides the development of science or there are other aspects. Developing an understanding of how scientists guide the process of new scientific processes and what drives them to do so is a major research topic.
Discussing how the economic approach differs from the approaches used in natural science, Herbert A. Simon argues that economists distance theory from data. Moreover, economics differs from other sciences in the definition of the concept of rationality (Simon, 1986). Economics tends to make estimates based on general assumptions. At the same time, other sciences use more individual approaches to empirically study the origins of values and how individuals use them. The author argues that economists lack a more comprehensive empirical framework, which leads to their ambiguous assumptions and conclusions. Moreover, contrasting economics and other sciences, such as psychology, the professor speaks of a variable called focus of attention. He believes that economists should use such approaches as, for example, psychologists, when studying human behavior (Simon, 1986). Citing the example of a clear economic theory that a homeowner will necessarily buy insurance for one reason or another, the author points out the main drawback of this assumption. Economists do not pay enough attention to the actual circumstances that guide peoples actions. On the contrary, the economy relies on an explicit theory of the cost-benefit ratio without considering external factors.
Another drawback is that almost no economics student studies the methods of observation. Such a technique would allow economists to make more precise forecasts and conduct more effective research. Thus, challenging the Viner model, the Herbert A. Simon argues that such a theory makes too generalized conclusions. When analyzing one firms work, it is impossible to draw the same conclusions about thousands of other companies. Thus, economic theory should move away from the technique of generalization and learn to approach analysis more specifically.
Reference
Simon, H. A. (1986). The failure of armchair economics. Challenge, 29(5), 18-25.
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