ABSTRACT
Peter Earl's collection of articles on Behavioural Economics of 1988 is mainly concerned with bounded rationality. The idea of support-bargaining and money-bargaining rests on a very different psychology that is incompatible with neoclassical understanding. Behavioural theory is seen as complementary to economic theory, reflecting the limited significance of laboratory-derived behavioural theory on the neoclassical economic model. The support-bargaining process includes the defining of situation concepts by which interests and values can be identified. These situation concepts are akin to the 'mental models' identified through behavioural psychology. The fusion of System 1 and System 2 is apparent in the idea of 'intellectual support-bargaining'. In Support-Bargaining, Economics and Society it was suggested that Darwin underestimated the importance of self-preservation in human behaviour. Support-bargaining suggests that the sense of cognitive ease, confidence and intuitions of coherence are all bound up with the support-bargaining that brings individuals relief from their sense of personal insecurity.
