r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 8h ago

Meme needing explanation Petah?

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u/GaracaiusCanadensis 6h ago

I think we overestimate the number of rational actors in the economy.

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u/monkwrenv2 4h ago

Probably the biggest failure in economics is the assumption that rational actors exist, much less are the majority of economic entities.

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u/GaracaiusCanadensis 4h ago

I think organizations can become rational; but on the aggregate, it seems like the core of marketing is fighting against rationality.

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u/Knyfe-Wrench 3h ago

I think you're conflating different definitions of "rational." Economics models trends. Throwing away your money on sports betting isn't "rational" if you want to put a value judgment on it, but millions of people do it, and you can be damn sure it can be modeled economically.