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 Originally Posted by wufwugy
Economists are the worst messengers I've come across. "Rational" means something different to them than its usage anywhere else. I recommend not getting hung up on the word. Economists account for every kind of behavior they can.
This doesn't seem wildly different to what I would expect, it only makes it more encompassing than just being about money:
A rational behavior decision-making process is based on making choices that result in the most optimal level of benefit or utility for the individual. Most conventional economic theories are created and used under the assumption all individuals taking part in an action/activity are behaving rationally. Rational behavior does not necessarily always involve receiving the most monetary or material benefit because the satisfaction received could be purely emotional.
Read more: Rational Behavior Definition | Investopedia http://www.investopedia.com/terms/r/...#ixzz4MRh1z5m0
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People make bad decisions all the time, economically and otherwise. Look at all the things where people don't even understand what rational behavior is, like the Gambler's Fallacy.
So it's clearly a very caveat-ridden assumption that doesn't belong at the core of a serious theory. No economist has ever come up with a good explanation for these irrational behaviors afaik.
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