The facts of the social sciences

Who is F.A. Hayek?

Why did he write this paper and who were the targets?

The methodology of the social sciences

The economic approach

Who is Gary Becker?

What is the economic approach?

The three fundamental assumptions of the economic method

  1. Maximizing behavior
  2. Market equilibrium
  3. Fixed (given) preferences

Maximizing behavior

Market equilibrium

Fixed (given) preferences

Implications