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Rational irrationality is not doublethink and does not state that the individual deliberately chooses to believe something he or she knows to be false. Rather, the theory is that when the costs of having erroneous beliefs are low, people relax their intellectual standards and allow themselves to be more easily influenced by fallacious reasoning, cognitive biases, and emotional appeals.
Marketers can take advantage of rational ignorance by increasing the complexity of a decision. If the difference in value between a quality product and a poor product is less than the cost to perform the research necessary to differentiate between them, then it is more rational for a consumer to just take his chances on whichever of the two is more convenient and available.
Bounded rationality attempts to address assumption points discussed within neoclassical economics theory during the 1950s. This theory assumes that the complex problem, the way in which the problem is presented, all alternative choices, and a utility function, are all provided to decision-makers in advance, [24] where this may not be realistic ...
The book received a mixed-to-positive review from Loren Lomasky in Public Choice, [8] co-inventor of the theory of "expressive voting" that was a close competitor to Caplan's theory of rational irrationality. [9] Stuart Farrand wrote a critique of Caplan's book for Libertarian Papers. [10] Gene Callahan reviewed the book for The Independent ...
Imagine there's a game where one person is placed in a room and assigned the role of the "sender." A second person in a different room is assigned the role of "receiver." The sender is given $20 ...
Irrational behavior can be useful when used tactically in certain conflict, game and escape situations. The moves of an irrational opponent are not (or only very limitedly) predictable. An irrational negotiator cannot be put under rational pressure. [52] An indirect tactic is the rational use of the irrationalism of third parties.
We identify a pivotal voter for each individual contest (A vs. B, B vs. C, and A vs. C). Their ballot swings the societal outcome. We prove this voter is a partial dictator. In other words, they get to decide whether A or B is ranked higher in the outcome. We prove this voter is the same person, hence this voter is a dictator.
Predictably Irrational: The Hidden Forces That Shape Our Decisions is a 2008 book by Dan Ariely, in which he challenges readers' assumptions about making decisions based on rational thought. Ariely explains, "My goal, by the end of this book, is to help you fundamentally rethink what makes you and the people around you tick.