irrational choices

What Is Rational Consumption?

by

What Is Rational Consumption? Someone is considered a ‘rational consumer’ because they are focused on their own self-interest; they maximize their utility in order to gain the most for themselves. As such, self-interest is the driving force of all decision-making. What is meant by rationality in economics? Rationality, for economists, simply means that when you

What Are The Weaknesses Of Rational Choice Theory?

by

What Are The Weaknesses Of Rational Choice Theory? While one could say that individual action drives large social structures, some rational choice theory critics argue the theory is too limited in its explanation. Another weakness of rational choice theory is that it doesn’t account for intuitive reasoning or instinct. Why is rational choice theory problematic?