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Classical economics usually take as assumptions that all actors have complete information and unlimited computational resources and are perfectly rational. In t
by zeroer 10y ago
Classical economics usually take as assumptions that all actors have complete information and unlimited computational resources and are perfectly rational. In the real world, we have decision fatigue and may engage in regret avoidance and end up not taking Uber at all if it's perceived as more difficult.
- nickff 10y agoThis is a false assertion (and possibly a straw-man); Adam Smith wrote "The Wealth of Nations" as a study of the way things actually worked, not a thought experiment. Classical economists (such as Smith) did not assume perfect information, and everyone knows that there is never perfect information.
- mark_edward 10y agoYes, the above poster is thinking of neoclassical economics. Classical economists like Smith, Ricardo, and Marx barely if at all touched on things like perfect information, rationality, or perfect competition. Those are all neoclassical paradigms.