Most of the time these models apply to the real world. Yes, in the cases where people act irrationally they don’t work. But a lot of economic phenomena can be explained through these simplified models.
This is one of the first things addressed in econ classes: people are rational. In that case, the itdependsman’s comment is true. In the case you mentioned (and there are many similar cases), people make irrational choices, making the free market theories less realistic.
Economists have to make these kinds of assumptions to make modeling the economy easier, but at the end people’s behaviour is chaotic and may be impossible to model at all.
Edit: behavioural economics is trying to understand the decision making process of individuals, and when they are more (or less) rational.
This pony
Guess i’m Caesar
The same for all foods.
What is the there when the time completes?
XKCD comic
He went on a ‘sabbatical’ from youtube. He didn’t quit making content, his game show podcast Lateral and newsletter are still running.
It feels they know too much to have an opinion that stupid.
The ticket should come with a total weight of the passenger and their luggage. If I’m skinny let me bring 70kg bags.
Yuo mean poofrearimg,
Most of the time these models apply to the real world. Yes, in the cases where people act irrationally they don’t work. But a lot of economic phenomena can be explained through these simplified models.
This is one of the first things addressed in econ classes: people are rational. In that case, the itdependsman’s comment is true. In the case you mentioned (and there are many similar cases), people make irrational choices, making the free market theories less realistic. Economists have to make these kinds of assumptions to make modeling the economy easier, but at the end people’s behaviour is chaotic and may be impossible to model at all.
Edit: behavioural economics is trying to understand the decision making process of individuals, and when they are more (or less) rational.
Hamlet wanting revenge: Is this a dagger which I see before me, The handle toward my hand? Come, let me clutch thee.
You are the source of bone apple tea-isms
So does this qualify a shower thought or not?
And yet there’s a smack of ham to it!
Arrested development - Hot Ham Water (Sorry YouTube link)
Let’s talk about latent heat and the refrigeration cycle!!