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But how can we have free markets if we have irrational actors? eg: first hit on google on the subject: https://innovationprotocol.com/2018/10/18/humans-arent-r

But how can we have free markets if we have irrational actors? eg: first hit on google on the subject: https://innovationprotocol.com/2018/10/18/humans-arent-rational/#:~:text=There%20a%20concept%20in%20economic,in%20their%20best%20self%2Dinterest https://innovationprotocol.com/2018/10/18/humans-arent-ratio....

gruez 4y ago
> But how can we have free markets if we have irrational actors? 1. why can't we have free markets in the presence of irrational actors? A free market just means... a market free from government interference. Irrational actors don't prevent this. Maybe you talking about "efficient" markets? 2. I'm really tired of people using the "people aren't 100% rational" as some sort of checkmate against markets. Humans being sometimes irrational just means the markets aren't making the most optimal choices. It doesn't mean that we should throw out the idea of markets, or an government bureaucrat (also an irrational actor!) tasked with overriding the market is necessarily going to be better.