“Since institutional economics is behavioristic, and the behavior in question is none other than the behavior of individuals while participating in transactions, institutional economics must make an analysis of the economic behavior of individuals.”

—  John R. Commons

Source: "Institutional Economics," 1931, p. 654

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John R. Commons 26
United States institutional economist and labor historian 1862–1945

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John R. Commons photo

“The difficulty in defining a field for the so-called institutional economics is the uncertainty of meaning of an institution. Sometimes an institution seems to mean a framework of laws or natural rights within which individuals act like inmates. Sometimes it seems to mean the behavior of the inmates themselves. Sometimes anything additional to or critical of the classical or hedonic economics is deemed to be institutional. Sometimes anything that is "economic behavior" is institutional. Sometimes anything that is "dynamic" instead of "static," or a "process" instead of commodities, or activity instead of feelings, or mass action instead of individual action, or management instead of equilibrium, or control instead of laissez faire, seems to be institutional economics.”

John R. Commons (1862–1945) United States institutional economist and labor historian

Source: "Institutional Economics," 1931, p. 648

“Economics deals with the behavior of commodities rather than with the behavior of men.”

Kenneth E. Boulding (1910–1993) British-American economist

Attributed to Kenneth Boulding in: Peter F. Drucker, Management: Tasks, Responsibilities, Practices, New York: Truman Talley Books, E.P. Dutton, 1986, p. 21.
1980s

“Intervening variables are essential to psychological analysis because without them our description of economic behavior would remain incomplete, our understanding of behavior limited, and our predictions of future behavior incorrect.”

George Katona (1901–1981) American psychologist

George Katona (1951). Psychological Analysis of Economic Behavior. McGraw-Hill, New York. p. 31

“There [is]… a list of five tests which any body of doctrine which aspires to the name of economic theory must be able to meet:
1. Economic theory should unify economic science. - The task of a general body of theory in any subject is to give unity to its investigations…
2. Economic theory should be relevant to the modern problem of control. - Students of economics should spend their efforts upon subjects worth investigation…
3. The proper subject-matter of economic theory is institutions. - The demand that economic theory relate to institutions is implicit in the plea for its relevancy…
4. Economic theory is concerned with matters of process. - If economic theory is to treat of institutions it must know both the kinds of things institutions are and the kinds of things they are not…
5. Economic theory must be based upon an acceptable theory of human behavior.”

Walton Hale Hamilton (1881–1958) Yale Law Professor

After all control and institutions and processes are immediate things. They can all be translated into terms of human conduct...
Source: The Institutional Approach to Economic Theory, 1919, p. 311-6

“Institutions are human behavior, and they are, therefore, to be explained by the characteristics of that behavior.”

George C. Homans (1910–1989) American sociologist

George C. Homans (1962), "Autobiographical introduction", in: Sentiments & activities; essays in social science https://archive.org/stream/sentimentsactivi00homa#page/34/mode/2up, p. 35

“During the past three decades numerous empirical studies of economic behavior have been carried out and their theoretical foundation has been clarified. There was a rapid development and articulation of data, theory, and methodology. A new discipline of behavioral economics was emerging [which] consists of the empirical investigations of the behavior of businessmen and consumers in one country in one time. Generalizations about economic behavior emerge gradually by comparing behavior observed under different circumstances.”

George Katona (1901–1981) American psychologist

George Katona, and James N. Morgan (1980). Essays on behavioral economics. Univ of Michigan Survey Research. p. 3

“Perception creates behavior. Perception encourages behavior. And because this institution--this artifice--continues to socially reinforce patterns of perception and behavior, if this behavior is destructive, it may not be a bad idea to eliminate or curtail the institution.”

Derrick Jensen book The Culture of Make Believe

Source: The Culture of Make Believe (2003), p. 50

“Economic logic requires that we maximize the productivity of the limiting factor in the short run, and invest in increasing its supply in the long run. When the limiting factor changes, then behavior that used to be economic becomes uneconomic. Economic logic remains the same, but the pattern of scarcity in the world changes, with the result that behavior must change if it is to remain economic. Instead of maximizing returns to and investing in man-made capital (as was appropriate in an empty world), we must now maximize returns to and invest in natural capital (as is appropriate in a full world). This is not “new economics,” but new behavior consistent with “old economics” in a world with a new pattern of scarcity.”

Herman E. Daly (1938) American economist

Herman E. Daly (1994) in: AnnMari Jansson. Investing in Natural Capital: The Ecological Economics Approach To Sustainability. 1994. p. 24

“Unlike pure theorists, we shall not assume at the outset that rational behavior exists or that rational behavior constitutes the topic of economic analysis. We shall study economic behavior as we find it. In describing and classifying different reactions, as well as the circumstances that elicit them, we shall raise the question whether and in what sense certain reactions may be called “rational.” After having answered that question and thus defined our terms, we shall study the fundamental problem: Under what conditions do more and under what conditions do less rational forms of behavior occur?”

George Katona (1901–1981) American psychologist

George Katona (1951). Psychological Analysis of Economic Behavior. McGraw-Hill, New York. p. 16; as cited in: Erik Angner and George Loewenstein. "Behavior economics," in: Philosophy of Economics, (2012), p. 657

Thomas C. Schelling photo

“What this book is about is a kind of analysis that is characteristic of a large part of the social sciences, especially the more theoretical part. That kind of analysis explores the relation between the behavior of individuals who compromise some social aggregate, and the characteristics of the aggregate.These situations, in which people's behavior or people's choices depend on the behavior or choices of other people, are the ones that usually don't permit any simple summation or extrapolation of the aggregates. To make that connection we usually have to look at the system of interaction between individuals and their environment, that is, between individuals and other individuals or between individuals and the collectivity.”

Thomas C. Schelling (1921–2016) American economist

Micromotives and Microbehavior (1978).

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