menu

Keyword: rationality


If It Is Too Good To Be True! (10/8/2017)

The simple-minded addiction to the efficient market hypothesis can lead to super-rational behavior.

Keywords: cartoon, efficient market, rationality

Life by default (1/16/2006)

Present bias and inertia lead to low enrollment in 401(k) retirement plans even though employer matching of employee contribution is quite generous.

Keywords: 401(k) retirement plan, default position, enrollment, opt in, opt out, participation, present bias, rationality

The Origin of Predictable Behavior (11/5/1999)

Economic behavior is predictable largely because bounded rationality leads people to adopt rules of thumb which display greater regularity than does optimization.

Keywords: behavior, bounded rationaltiy, flexibility, institutions, optimization, predictability, rationality, regularity, reliability condition, rules, sunk costs, uncertainty