The Rational and Irrational Integration of Choosing Behavior

Author: He Da'an
Publisher:
Publish Date: 2006-12-01
Features: As is well known, economics is based on two fundamental assumptions: the rationality of individuals and the scarcity of resources. Accompanying these two assumptions, different schools of economic thought have developed their theoretical deepening and innovations. The traditional economic model of "preference consistency + utility maximization" for rational decision-making once led to the detachment of economic decision theory from reality, making it a form of "blackboard economics." When studying the integration of rational and irrational choice behaviors, this book argues that "utility maximization" is merely a logical deduction made by traditional mainstream economics based on subjective expectations of economic behavior, aligning with human behavioral purposes. The realization of utility maximization is, while failing to achieve it is a frequent occurrence. Based on this, the book proposes a new concept, "behavioral maximization," which it believes can better describe the actual psychological activities and behavioral processes of individuals when making choices. Replacing "utility maximization" with this new concept can lead to a more realistic analysis of rational and irrational choice behaviors. Subsequently, the author explores the isomorphic phenomena of rationality and irrationality in the behavioral process, the transformation of rational choices into irrational ones, and finally analyzes the rationality and irrationality in government choice behaviors. The author hopes that economists can broaden or deepen their research on rational and irrational choice issues along this line of thought.