Normative rationality after behavioral economics: what is left?

The research of many decades by behavioral economists and psychologists has shown that the standard rationality axioms do not describe how individuals actually behave in many circumstances. Nevertheless, behavioral economists still argue for the normative character of the axioms: they describe how individuals should behave. Violations of the axioms are red flags for some type of pathology. This article argues that the history of the axiomatic approach in economics does not lend support to the normative case. Furthermore, it is argued analytically that the rationality axioms are vacuous. The attribution of irrationality to behavior can only be accomplished by reference of a more inclusive idea of rationality. The axioms are too thin and misleading. They do not have policy significance.