Economic models say we make rational choices. Do we?

Economic models say we make rational choices. Do we?

November 20, 2017

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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