Evan goes out drinking every Thursday night, even though he tends to show up late for work and hung over on Friday. Why might Evan’s friends consider this behavior irrational? Why might an economist consider Evan’s behavior economically rational?
Evan goes out drinking every Thursday night, even though he tends to show up late for work and hung over on Friday. Why might Evan’s friends consider this behavior irrational? Why might an economist consider Evan’s behavior economically rational?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Evan goes out drinking every Thursday night, even though he tends to show up late for work and hung over on Friday.
Why might Evan’s friends consider this behavior irrational?
Why might an economist consider Evan’s behavior economically rational?
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Step 1
Meaning of Behavioral Economics:
The term behavioral economics considers individuals' mindset or the level of their thinking/decision-making process in different situations, thus this decision-making process arises more under practical thinking rather than opting for emotional level.
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