Broader scopes of the reflexivity principle in the economy

The reflexivity principle of George Soros – that man’s fallible understanding can have reflexivity impacts that shape reality – challenges mainstream economics in a fundamental way. This essay will outline a research program that corroborates the reflexivity principle and extends it to broader economic issues. We shall often use examples of consumer and finance markets, but the implications go beyond these examples. The following eight sections build up our main thesis that reflexivity plays an essential role in understanding the economy.