4 ms·
Assuming that everyone is acting in their own best interest, then a 36%+ interest rate would only be used by someone who is in a situation where it is better th
by troupe 5y ago
Assuming that everyone is acting in their own best interest, then a 36%+ interest rate would only be used by someone who is in a situation where it is better than their alternatives. If the option was not available, then they wouldn't have the alternative that is best for them.
If someone is NOT acting in their own best interest, then there are an infinite number of things that need to be removed from their options.
- baq 5y agoStandard humans routinely fail to correctly asses options. They can’t even if they’re aware they can’t. Economists are still coming to terms with how badly the rational choice theory predicts human behavior.