Abstract:
In mainstream economic theory, rationality is typically defined in terms of stable preferences and complete information and reduced to instrumental rationality. Rooted in a synthesis of Cartesian philosophy, Kantian rule-governed reason, and Weber’s instrumental–value distinction, and crystallized in rational choice theory, this view reduces homo economicus to a calculating, self-interested individual detached from ethical and social contexts. Adopting a critical approach, this article argues that such a reductionist conception is not a universal truth but a historical and cultural construct that neglects essential dimensions of human behavior. Rationality is examined across three dimensions: philosophically, through a reconsideration of the roles of Descartes, Kant, and Weber in shaping modern rationality; socially and institutionally, by emphasizing the “embedded human” and the influence of structures, norms, and culture on rational action; and psychologically, by addressing cognitive limitations through bounded rationality and findings from behavioral economics and neuroeconomics. The results indicate that the classical model of rationality, by reducing reason to instrumental calculation, fails to adequately explain actual human behavior. In response, the article proposes an alternative framework—“Dynamic Fuzzy Rationality,” grounded in Sadrian philosophy—which conceptualizes rationality as a continuous, evolving spectrum encompassing instrumental, ethical, and transcendent levels, thereby offering a more realistic and comprehensive account of human economic behavior.