ABSTRACT
Many economists will only be willing to deidealise economic theory if it can be shown that anomalies of the theory of choice matter on the level of markets. In model-based explorations of the scope of the standard theory, economists create models of markets in which agents interact whose behaviour is modelled by either standard economic theory or by behavioural economic theory. Behavioural economists also use the experimental strategy to determine the circumstances under which the standard theory can be expected to predict correctly. Gary Becker shows that an important market-level result of economic theory can be derived with a number of different models of economic agents. Brian Kluger and Steve Wyatt investigate the connection between individual judgement errors and market equilibrium. Even though methods of behavioural economics are more local than methods based on theoretical reduction, behavioural economists still have the resources to determine the scope of the standard theory.
