Aïleen Lotz
Abstract: This paper extends the notion of the rational agent in economics by acknowledging the role of the unconscious in the agent’s decision-making process. It argues that the unconscious can be modelled by a rational agent with his own objective function and set of information. The combination of both the conscious and unconscious agents is called the « dual agent ».
This dual agent presents rationally biased behaviors that may not disappear through aggregation, and could be potentially measured. It also provides a theoretical approach to the emotionally-driven actions. On the social sciences side, the paper advocates a wider use of hidden rationality in the understanding of human behavior.
Keywords: rational agent, decision-making, conscious and unconscious asymmetry of information, imperfect information, dual agent, theory of emotions, substantive and procedural rationality, psychology, bias
JEL Classification: B41, D01, D81, D82