Peter Rona

“So what is the alternative to rational choice conceived as a value-neutral predictive science? Hermeneutics encourages economists to conceive of rational choice as a heuristic. Heuristics, in this sense, are fruitful ways of generating insights or conclusions about social reality. Heuristics are not to be confused with explanations. Because humans are self-interpreting, explanation requires grasping the actual meanings and beliefs that contingently cause a belief or action. To explain social reality economists must construct narratives or stories. By contrast, a heuristic need neither describe nor explain economic life. Instead, it offers a way of thinking about society that might help consider possible outcomes and hypothetical scenarios. This means that rational choice must never be confused as having generated an actual account of what particular people are doing or why they are doing it. Colin Hay helpfully proposes the notion of rational choice as an effective method for considering”
― Peter Rona, Agency and Causal Explanation in Economics