Between Individual and Collective Rationality

Abstract

The paper raises the question of irreducibility of collective rationality to individual rationality. The irreducibility of collective rationality to individual rationality is explained by the phenomenon of complexity and complex character of human nature. Taking the complexity theory approach to the analysis of institutions, it discusses the question of dependency of individual rationality on collective rationality. It is asserted that collective rationality emerges not merely from the human capacity for rational reasoning but from a variety of other human capabilities which influence the formation and functioning of socioeconomic institutions. Institutions, in turn, are understood here to be a specific embodiment of collective rationality.