3 ms·
And economics often operates under the assumption that all actors act rationally and with perfect and complete information, which of course we know is not true.
by hermitdev 10y ago
And economics often operates under the assumption that all actors act rationally and with perfect and complete information, which of course we know is not true.
(editted for clarity, grammar and spelling)
- pg314 10y agoFor those interested to read more: it's called the homo economicus [1]. [1] https://en.wikipedia.org/wiki/Homo_economicus https://en.wikipedia.org/wiki/Homo_economicus
- snrplfth 10y agoEssentially zero actual economists assert or believe that actual humans in actual economies are, or behave like, homo economicus. Essentially all are aware that it is a limited model, which attempts to approach certain important features of reality, but cannot always do so due to limits on information, comprehension, and subjective values. Meteorology is still a valid field of science even if its models are limited and incomplete. Likewise with economics. "Economists think homo economicus is literally true" is a ludicrous strawman.