Rational Choice Theory - 60 Second Adventures in Economics (6/6)

Рет қаралды 246,855

12 жыл бұрын

Without a belief in rational behaviour, it's hard to design an economic policy with predictable results. In practice, people's errors or misinformed choices can frustrate policy design.
(Part 6 of 6)
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Пікірлер: 40

@blue6168 2 жыл бұрын

didn't know david mitchell taught economics

@GabrielConstantinides 11 жыл бұрын

If everyone says they don't follow the crowd, is there actually a crowd. Another Paradox :)

@KIinkKIink 11 жыл бұрын

Economics: Either way, you're screwed.

@DarkReapersGrim 10 жыл бұрын

Awesome video. So...what is Rational Choice Theory?

@Avarrak 6 жыл бұрын

I was thinking the exact same thing. The video ended and i was just like ok.... nice, now i know bandwagon-ing exists and sometimes people think something is right when it isn't.

@CosmoShidan 6 жыл бұрын

To put it in simple layperson terms, it's what economists assume, that people will make a rational choice on what is beneficial and sidestep what costs more. E.g. let's say a person a goes to buy a $50 dollar cell phone, but finds a $75 dollar cell phone, according to rational choice theory, A will buy the cheaper cell phone, since it will save him or her $25 dollars. However, that is not the case as A will buy the $75 dollar cell phone assuming it is of higher quality, due to the higher price tag.

@izzyexplains8620 6 жыл бұрын

CosmoShidan not exactly. Rational in economics mean one’s choices are transitive and complete. E.g. if I prefer A to B and B to C then I prefer A to C and that I always have an opinion between two things (that opinion can be indifferent, I just can’t not be able to make up my mind).

@bellomuhammad6406 Жыл бұрын

Thank you 😊

@NicholasAthias 4 ай бұрын

The take away is that humans are not rational. Contrary to what is believed from a rational perspective, some humans tend to act irrationally either out of fear or acting with a mob mentality.

@jipongofficial5904 3 жыл бұрын

what are the 2 concepts of rational choice theory?

@NoahMine1 10 ай бұрын

good video

@mocthezuma 12 жыл бұрын

Yes. Why do you ask? Did you think it wasn't him?

@fakeapplestore4710 8 жыл бұрын

I love your portrayal odd the res publica as crowd following phillistines.

@fakeapplestore4710 8 жыл бұрын

*of

@Andrew_Sparrow 12 жыл бұрын

Last video :( I want more! :)

@keagar1 9 жыл бұрын

I don't understand how the examples in the video violate rationality. The main axiom of rationality is that preferences are transitive or consistent . Meaning if option A is preferred to option B and option B is preferred to option C then option A is must be preferred to option C.

@CosmoShidan 6 жыл бұрын

What's being said in the video is that, the rational agent will choose what benefits their interests and avoid what costs more, but that is not the case. Simply put, humans will choose what is costly and not what benefits their interests.

@izzyexplains8620 6 жыл бұрын

CosmoShidan the original comment is actually correct. What you and this video are stating as the definition of “rational” is the vernacular/nontechnical definition of rational. In economics, rational has a very precise mathematical definition (that preferences are transitive and complete). This misunderstanding of the economic definition of rational causes a lot of confusion and unwarranted criticism of economics.

@somecuriosities 8 жыл бұрын

+ouLearn on KZfaq You should do more of these - especially one on behavioural economics!

@OpenLearn_OU 8 жыл бұрын

+Some Curiosities We have got another in production - not on behavioural economics unfortunately but on Microgravity. Due for release Spring 2015!

@RedMeansRecord 12 жыл бұрын

This means you currently care. I couldn't care less* (in David Mitchell's voice)

@buffyboy101 10 жыл бұрын

Yeah so this is to do with the rationality assumption, not to do with rational choice theory really.

@Mastervitro 11 жыл бұрын

Economy: The efficient management of resources. Money is simply an obsolete tool to help us be economical in scarcity. We today have the technology and resources to effectively end world hunger, have abundant energy, and increase the standard of living for everyone. But that wont happen as long as greedy multibillionaires have there way.

@mocthezuma 12 жыл бұрын

Yes that would be very funny indeed :P

@OpenLearn_OU 12 жыл бұрын

Hi, yep that is David Mitchell's voice!

@torosalvajebcn 11 жыл бұрын

Smart peole follows the crowd when they must do. Some people run the other way, but that doesnt make them Smart, just passive agressive.

@izzyexplains8620 6 жыл бұрын

This video is confusing what “rational” means in the vernacular and it’s technical meaning in economics. In economics, a rational choice does not mean that a choice is what is best for someone, as it means in everyday usage. In economics, rational choices means a person’s choices are transitive and complete.

@mnbaa88 2 ай бұрын

Not so clear explanation. 🙏🏻

@Slimdawgc 5 жыл бұрын

This is a terrible explanation of rationality. Please learn some actual economics.

@SpuddygamerURL 3 жыл бұрын

mad?

@rfry 11 жыл бұрын

Never follow the crowd, you damn sheep.... the wolves will get you

@camelCaseFTW 12 жыл бұрын

trololol government

@Confuzledish 12 жыл бұрын

That's the joke.

@Confuzledish 12 жыл бұрын

I could care less.

@Method9 11 жыл бұрын

why are we playing with this money machine at all? this is stupid go outside economists. plant something. we can take it from here your machine is busted.