A proposal to rebuild economics
around managerial roles
Contemporary economic theory is built around the abstract concept of rational agency that aggregates multiple and iterative managerial decisions and their outcomes for the purpose of modeling. However, this has made verification of the theory difficult and led to policy agenda that reject reality as imperfect and call for replacing it with its abstract model. This theory cannot provide guidance for the actual role players in real world organizations for modifying their everyday operations for improving the behavior of the organizations they manage.
Rationality is not embedded in the abstract roles of the agents as implied in mathematical models of economic theory. Rational outcomes in an economic system can be achieved by iterative adjustments arising out of bounded-rational managerial actions that are information-bound and depend on a multiplicity of factors internal to a firm or a sector in the economy. However, in reality the information bounded iterative adjustment process can create both functional and dysfunctional outcomes as borne out by experience.
This website collects my work on exploring ways to operationalize economic theory by rebuilding it around managerial roles so it can create policies affecting those roles.