3 ms·

I think Daniel Kahneman and Amos Tversky already put the “rational market participant” myth to bed for good.

• whimsicalism 5y ago
  Definitely, for the consumer. I think the idea that "rational market participant emerges when you get the average of a lot of people (ie. the firm) together to make a decision" still remains alive and well. There is sort of a Darwinian argument there, that in the long-run only the rational market participant remains in business and functioning as a firm. The import of behavioral econ. definitely remains understated today. I am also interested in philosophical thinkers, like Elizabeth Anderson or Michael Sandel, that take questions like these and explore the implications that they might have for how we ought to structure society.
  • sidlls 5y ago
    That seems likely to veer into begging the question or tautology territory.