Contrary to popular opinion, economists don’t assume that people are always rational. We don’t think it’s true in the world. And, since the early 1980s, we haven’t always assumed it in our models.
The comical notion of homo economicus, with which critics of economics and economists like to have fun, is not one which most actual economists would recognise.
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Richard Holden is scientia professor of economics at UNSW Business School. Connect with Richard on Twitter.