Rational Choice Theory - 60 Second Adventures in Economics (6/6)

Without a belief in rational behaviour, it's hard to design an economic policy with predictable results. In practice, people's errors or misinformed choices can frustrate policy design.

(Part 6 of 6)

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[DarkReapersGrim]

Awesome video. So...what is Rational Choice Theory?

[blue]

didn't know david mitchell taught economics

[GabrielConstantinides]

If everyone says they don't follow the crowd, is there actually a crowd. Another Paradox :)

[KIinkKIink]

Economics: Either way, you're screwed.

[keagar]

I don't understand how the examples in the video violate rationality. The main axiom of rationality is that preferences are transitive or consistent . Meaning if option A is preferred to option B and option  B is preferred to option C then option A is must be preferred to option C.

[OpenLearn_OU]

Hi, yep that is David Mitchell's voice!

[fakeapplestore]

I love your portrayal odd the res publica as crowd following phillistines.

[jipongofficial]

what are the 2 concepts of rational choice theory?

[mocthezuma]

Yes. Why do you ask? Did you think it wasn't him?

[somecuriosities]

+ouLearn on YouTube You should do more of these - especially one on behavioural economics!

[Mastervitro]

Economy: The efficient management of resources.

Money is simply an obsolete tool to help us be economical in scarcity. We today have the technology and resources to effectively end world hunger, have abundant energy, and increase the standard of living for everyone. But that wont happen as long as greedy multibillionaires have there way.

[buffyboy]

Yeah so this is to do with the rationality assumption, not to do with rational choice theory really.

[izzyexplains]

This video is confusing what “rational” means in the vernacular and it’s technical meaning in economics. In economics, a rational choice does not mean that a choice is what is best for someone, as it means in everyday usage. In economics, rational choices means a person’s choices are transitive and complete.

[RedMeansRecord]

This means you currently care. I couldn't care less* (in David Mitchell's voice)

[torosalvajebcn]

Smart peole follows the crowd when they must do. Some people run the other way, but that doesnt make them Smart, just passive agressive.

[Slimdawgc]

This is a terrible explanation of rationality. Please learn some actual economics.

[mocthezuma]

Yes that would be very funny indeed :P

[rfry]

Never follow the crowd, you damn sheep.... the wolves will get you

[Method]

why are we playing with this money machine at all? this is stupid go outside economists. plant something. we can take it from here your machine is busted.

[NN-erwg]

Nice voice, I immediately stopped watching