07 Getting What You Want

The work of Smith, Ricardo, and Marx is usually grouped together as 'classical' economics. From the late 19th Century, a group of economic philosophers began to develop 'neoclassical' economics which is the basis for the 'orthodox' economic thinking of today. Neoclassical thinkers - and Jevons in particular - challenged the labour theory of value and instead began to develop a theory of 'utility' that became the basis also for Game Theory, However, the philosophical 'cost' of this form of 'orthodox' economics seems to be in the overemphasis that it puts on an idealized form of human rationality.

Useful Reading
Ch.7 of 'The Worldly Philosophers'

Fifty Major Economists, entries on 'Leon Walras', 'William Stanley Jevons', 'Carl Menger', and 'Alfred Marshall'
Utility (wikipedia)
Marginal Utility (wikipedia)
The Consumption Decision (Economics: mini lecture)
Game Theory (econlib)
Game Theory (SEP; excellent overview)
Game Theory (wikipedia: very good set of links)
Game Theory (BBC)
Game Theory 101 (youtube: very useful short introductions)
Economic Rationality: Adaptive Artifice (Herbert Simon 'The sciences of the artificial')
Social Heuristics that Make Us Smarter (Susan Hurley paper: contains an excellent overview of 'rationality')