Download This PaperThe Rationality of Irrationality
19 Pages Posted: 2 Jul 2008 Last revised: 24 Apr 2012
There are 2 versions of this paper
The Rationality of Irrationality
Number of pages: 19
Posted: 18 Jun 2009
Last Revised: 24 Jan 2012
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Date Written: July 1, 2008
Abstract
The Bounded Rationality Assumption does not contradict The Rationality Assumption. Specifically, in small decisions it is rational to act like boundedly rational agents. The previous proposition may provide answers to many challenges of rational choice economic theory by behavioral economics. In particular, it provides an answer to the "Paradox of Rabin". This also challenges our understanding of how to refute the rationality assumption.
Keywords: Rationality, Bounded Rationality, Computation
Suggested Citation: Suggested Citation
Weiss, Uri, The Rationality of Irrationality (July 1, 2008). Available at SSRN: https://ssrn.com/abstract=1154050 or http://dx.doi.org/10.2139/ssrn.1154050
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