Consolidating behavioural economics and rational choice theory: Insights from inequality research

Using illustrations from research on inequality, this paper offers evidence the strengths of ‘behavioural synthesis’, i.e. reconciliation between neoclassical and behavioural economics. We compare how theoretical models absolute relative inequality have evolved assumptions income maximization to status-seeking competition, altruism. emphasize relevance experiments in testing competing theories mitigating empirical shortcomings. conclude that methodological pluralism, scientific integration, is necessary when it comes understanding propose strategies can be done.