Chapter
Applying Rational Choice Theory to Understand Human Behavior
44:19 - 48:49 (04:30)
Economist and author, Tim Harford shares how combining rational choice theory with behavioral economics and psychology can help us better understand human decision making, even in cases that may seem illogical.
Clips
Rational choice theory can provide a framework for understanding optimal decisions, while behavioral economics can help identify barriers to those decisions.
44:19 - 48:49 (04:30)
Behavioral Economics
Summary
Rational choice theory can provide a framework for understanding optimal decisions, while behavioral economics can help identify barriers to those decisions. This combination can be useful in understanding behaviors such as addiction, discrimination, and crime.