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Behavioral economists examine choices that consumers make that are not economically rational

Behavioral economists examine choices that consumers make that are not economically rational

Discussion

Behavioral economists examine choices that consumers make that are not economically rational. Economists generally assume that people are rational; that is, they weigh the benefits and costs of an action and choose an action only if the benefits outweigh the costs. Why do consumers not act rationally when the result is that they make themselves worse off?

Provide a personal example when you did not act rationally. What were some of the economic reasons behind your behavior?

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