As Simon and others have demonstrated, the model of homo oeconomicus is far from convincing. But the cognitive limitations of decision-making, these authors put forward, do not render rational actors less rational. A more realistic model of rational choice has to focus on the economic, political and normative-institutional incentives, which may explain why rational actors act the way they do.
CITATION STYLE
Helbling, J. (2017). Boundedness of rationality. In Economic Ideas You Should Forget (pp. 75–76). Springer International Publishing. https://doi.org/10.1007/978-3-319-47458-8_31
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