Approximating Prudence - Aristotelian Practical Wisdom and Economic Models of Choice

The economic model of choice is a powerful tool, applied widely in economic analysis. Approximating Prudence outlines the limits of the economic model by comparing it to a more comprehensive account of reasoned choice: the account of practical wisdom in the Aristotelian tradition. Although certain aspects of Aristotelian practical wisdom can be captured by the quantitative optimization models of economics, other aspects will always elude attempts to model them. The realization that there are limits to what economic models can do puts into perspective the place of economics in the larger conversation about markets, society, and politics.