Predictably Rational? - In Search of Defenses for Rational Behavior in Economics

Key Facts and Insights

1. Richard B. McKenzie, in his book, challenges the prevalent notion in economics that humans are predictably irrational in their decision making.
2. He emphasizes on the role of market constraints in shaping rational behavior, thus providing a defense for rational behavior in economics.
3. McKenzie discusses the concept of 'bounded rationality', arguing that individuals, while not perfectly rational, make decisions within the constraints of their available information, time and cognitive limitations.
4. He dismisses the notion that humans are consistently 'irrational' or 'predictably irrational', stating that seemingly irrational behaviors can be understood as rational responses to specific constraints...

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