Economic Methodology

The absence of norms plays an essential role in all of the five neutralities. Their absence from everyday economics is simply due to the nature of standard economics methodology. However, the current models are only effective until people begin to lose utility because they (or others) are not acting in the way that they should. The current methodological methods are biased against their use, currently.

Each person or entity behaves in a specific way for a reason, and Akerlof's main argument is that the reasons need to be taken into account, this is allowed by the five neutralities. We have shown the ways that economic variables can be and are influenced by norms.