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Tuesday, 28 November 2017

ECONOMIC MODELS SAY WE MAKE RATIONAL CHOICES. DO WE?

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For years, economists and psychologists have argued about whether the standard model that economists use to explain how people make decisions is correct. It says that people make rational choices: they weigh all the options against a well-defined set of preferences to choose the one which makes them happiest or is the most valuable to them.

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