The Black Box

Heuristics, the Non‐maximizing Firm and Efficient Allocation

“…By its nature, the non‐maximizing firm is linked to a neoinstitutional environment. In such an environment, however, there is no basis for believing that boundedly rational agents can know, either with certainty or probabilistically (Wiseman, 1991, pp. 151–152), the price developments that will take place in far‐distant periods.…”

“…. The problem is not simply that we do not know which of a possible set of futures will be the actual future; it is that we do not know the content of the possible set’ (Wiseman, 1991, p. 152).…”

Methodology of the Social Sciences, Ethics, and Economics in the Newer Historical School

“…Thus, attempts to introduce such concepts as bounded rationality or Knightian uncertainty (Wiseman 1991) can only lead to confusion. Thus, attempts to introduce such concepts as bounded rationality or Knightian uncertainty (Wiseman 1991) can only lead to confusion.…”

A changing of the guard

“…He (1991: 139) acknowledges that "the centrality of the issues will ensure that these issues will continue to be a primary focus of research in the coming century." Wiseman (1991) in his last, posthumously published address to the economics profession, appropriately entitled 'The Black Box', attempts to see a little through the glass, darkly and finds much to commend concerning the future of public choice, or at least of certain of its branches. Wiseman is very down on neoclassical economics and, consistently, sees little future for that branch of public choice that has become "simply an additional dimension of the mainstream model" (p. 154).…”