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The problem with this is everyone's definition of Rational Actor is arbitrary in what incentives it excludes or includes. Talking about what a Rational Actor wo
by droopyEyelids 12y ago
The problem with this is everyone's definition of Rational Actor is arbitrary in what incentives it excludes or includes. Talking about what a Rational Actor would do makes about as much sense as claiming your opinion is fully objective.
- baddox 12y agoIn my opinion, the version of rationality that has the most relevance to economic analysis (and should really be the primary definition of the term in economics) is bounded rationality. http://en.wikipedia.org/wiki/Bounded_rationality http://en.wikipedia.org/wiki/Bounded_rationality