Contents
Title
From Man to Man with AI Navigation: An Essay on the Homo Economicus Strengthened and Weakened by AI
Author(s)
Kutlu ERGÜN
Classification JEL
D91, G41, D01, D11, C45.
Abstract
Homo economicus, who is assumed always to pursue utility maximization, has been accepted as a fundamental assumption in both classical and neoclassical economic theories. However, this concept has been questioned in both theoretical and empirical studies. This article examines the approach of the rational human being on the one hand and investigates the limits of rationality on the other. In conducting this research, the article outlines the general framework of homo economicus and highlights how the approach of rationality evolves and differs within the context of real-world phenomena. Within the framework of behavioral economics, the article presents cognitive biases and deviations from rational behaviors that contradict the assumptions of utility maximization. Then, it focuses on humans and artificial intelligence (AI), particularly in the context of rational decision-making. In the last section, the potential relationship between AI and a new human species equipped with AI is discussed, suggesting that Homo economicus may evolve significantly and potentially exhibit greater rationality than before. This paper discusses the need to redefine rationality in economics as a dynamic process and conceptualize it in the new world. The paper aims to contribute to the reevaluation of the concept of decision-making in the era of AI and to enhance human ability to make more rational decisions by reevaluating the approaches of Classical and Neoclassical Economics as well as Behavioral Economics.
Keywords
Homo economicus, AI, rationality, human behavior, decision-making.
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