G. L. S. Shackle’s introspective behavioral economics

Abstract

Shackle’s introspection-based theory of choice under uncertainty prefigured elements of both Simon’s satisficing analysis and Prospect Theory but did so in a way aimed at providing an alternative to probabilistic thinking. His theory focuses on creative, critical use of the imagination in assessing possibilities and potential for surprise, and on the process of focusing en route to choice. This paper covers the genesis and elements of Shackle’s framework and considers its implications for policymakers.