Uncertain Thoughts On Uncertainty
|Well purity is just a measure of lack of uncertainty, right?|
Adding economics to diagram above would probably put it far to the left in the diagram, even further left than sociology. Most 18th and 19th century economists like Adam Smith, Marx, Ricardo, and Marshall would probably have put it there. Basically, at any time before the mathematical revolution in economics, starting in the 50s, the goal of an economist would have been to apply ideas from sociology and psychology to understand how the economy behaves. The pioneers of the mathematical revolution aimed to take economics more right on the diagram and dreamed of bringing it near physics. The economic models that emerged were mathematically elegant but were based on the core tenet of agents being rational- fully optimizing- in every situation. These models, especially in microeconomics, could not explain real-world data that became increasingly available from the 80s. The pioneering work of Simon, followed by Kahneman, Tversky and others provided alternative models for behavior that did not rely on rationality assumptions. This started a movement towards the left diagram from the diagram and today economics has again started to incorporate ideas from sociology and psychology into understanding how economic agents actually behave.