Economics Supply And Demand Questions
The concept of rational irrationality refers to the idea that individuals may act in an irrational manner, but their behavior can still be considered rational based on their own subjective preferences and goals. In economics, this concept suggests that individuals may make choices that seem irrational from an objective standpoint, but are actually rational when considering their own personal motivations and incentives. For example, individuals may choose to spend money on luxury goods or engage in addictive behaviors, even though these actions may not be in their long-term best interest. This concept challenges the assumption that individuals always act in a perfectly rational and self-interested manner, and recognizes that human behavior is influenced by a variety of factors, including emotions, social pressures, and cognitive biases.