Disengaging liberalism from rationality

From Adam Smith onward, a liberal tradition of economics has described the market system as both wealth creating and liberty enhancing. Modern economics has formalized this description in “neoclassical” models of markets populated by rational agents. However, there is growing evidence that individuals’ decisions often reveal inconsistent preferences. I review three influential books that present this evidence as a challenge to liberal justifications for the market. In response, I argue that individuals, whether neoclassically rational or not, can value the market as an institution that allows them to get whatever they want and are willing to pay for. This justificatory strategy illustrates how liberalism might benefit by disengaging itself from rationality.