Elias L. Khalil

The paper distinguishes between two kinds of products, `symbolic' and `substantive'. While substantive products confer welfare utility in the sense of pecuniary benefits, symbolic products accord self-regarding utility. Symbolic products enter the utility function in a way which differs from substantive ones. The paper distinguishes among three kinds of symbolic products and proposes that each has a distorted form. If symbolic products result from forward-looking evaluation, they act as `prestige goods' which please admiration or, when distorted, as `vanity goods' which satiate pretentiousness. When symbolic products originate from forward-looking action, they act as `pride goods' which satisfy respect or, when distorted, as `deference goods' which indulge pomposity. When symbolic products arise from backward-looking evaluation, they act as `identity goods' which enhance dignity or, when distorted, as `reification goods' which gratify reverence

The brain is involved in theory-laden cognitive processes. But there are two different theory-laden processes. In cases where the theory is based on facts, more facts can either falsify or confirm a theory. In cases where the theory is about the choice of a benchmark or a standard, more facts can only make a theory either more or less warranted. Clark offers a review of a view of the brain where the brain pro- cesses input information in a way that confirms its priors or its pre- dictions. This does not mean that the brain creates its own reality. The brain, rather, processes input data, but it does so in light of its own priors. The brain is a bidirectional hierarchical structure. While the top layers generate priors, the lower layers process input data. The brain amounts to the dynamics of image- making, where the top-down process generates unified images, while the bottom-up process, which takes data, corrects the images.

Organisms change their shape and behavior during ontogenesis in response to incentives—what biologists call “phenotypic plasticity” or what is called here more specifically “behavioral plasticity.” Such plasticity is usually in the direction of enhancing welfare or fitness. In light of basic concepts in economics, such behavioral plasticity is nothing but rationality. Such rationality is not limited to organisms with neural systems. It also characterizes brainless organisms such as plants, fungi, and unicellular organisms. The gist of the article is the distinction between rationality and intelligence. Whereas rationality is ubiquitous in all organisms, intelligence varies in degrees depending on division of labor that may involve the evolution of a neural system. This article aims to defend the universality of rationality—the Organismus oeconomicus hypothesis. It argues that neither the notion of bounded rationality of behavioral economics nor Herbert Simon’s “procedural rationality” can ultimately undermine the Organismus oeconomicus hypothesis

Rosen accuses conventional biology of abandoning its main challenge: the understanding of the nature of life. Biologists generally act subservient to physicists, handicapped by the Cartesian metaphor of the organism as machine. This allows biologists to eschew the issue of intentionality and finalism. The machine metaphor assures biologists that they do not need to appeal to laws other than the ones used by physicists. Rosen argues that the machine metaphor affords the reduction of the organism to its constituent parts.

Neo-Darwinism is based on the same principles as the Walrasian analysis of equilibrium. This may be surprising for evolutionary economists who resort to neo-Darwinism as a result of their dissatisfaction with Walrasian economics. As it is well-known, the principle of rationality does not play a role in neo-Darwinism. In fact, the whole (neo-)Darwinian agenda became popular exactly because it expunged the idea of rationality from nature, and hence, from equilibrium. It is less known, however, that the rationality principle is also not central in Walrasian equilibrium analysis. Therefore, if we find that the rationality principle must be central to the analysis of decision making of human and nonhuman organisms, we must advance organomics . Organomics is bioeconomics understood as the use of rational choice to the study of the behavior of human and nonhuman organisms. Organomics offers a different starting point than the one offered by neo-Darwinism.