Economics Supply And Demand Questions
Rational ignorance refers to the decision of individuals to remain uninformed about certain topics or issues due to the perceived costs outweighing the benefits of acquiring knowledge. In economics, this concept suggests that individuals may choose not to gather information about certain goods, services, or policies if they believe that the effort required to obtain the information exceeds the potential benefits.
On the other hand, rational irrationality refers to the idea that individuals may act against their own self-interests or make irrational choices based on their preferences or beliefs. This concept suggests that individuals may have biases, emotions, or cognitive limitations that lead them to make decisions that are not in their best economic interest.
In summary, the main difference between rational ignorance and rational irrationality is that rational ignorance involves a lack of information due to cost-benefit analysis, while rational irrationality involves making irrational choices based on personal biases or limitations.