preview

What Does It Mean To Be Rational?

Satisfactory Essays

Economist figure that everyone acts rationally because of incentives and self-interest. We assume that individuals do not intentionally make decisions that would leave themselves worse off. Rationality assumption is the assumption that people do not intentionally make decisions that would leave them worse off. The distinction here is between what people may think—the realm of psychology and psychiatry and perhaps sociology—and what they do. (Miller, 2015).
Being rational can be based off being logical. These decisions provide people with the greatest benefit or satisfaction. The things that push you towards being rational is self-interest and incentives. Self-interest is putting yourself at an advantage. According to Adam Smith, the father

Get Access