Spea v 185 exam 2 - Study guides, Class notes & Summaries

rational decision making Traditional economic theory that people are rational actors rational choice/public choice people act based on their self interest what does it mean to be a rational actor? You are able to rank, order your preferences based on the expected utility of each option. These rank ordered preferences are stable and transitive. Having perfect information about all alternative possibilities. Maximize your utility pure rationality requires person to have...

What does it mean to be a rational actor? You are able to rank-order your preferences based on the expected utility of each option. You are also able to analyze all the possible alternatives and know which alternatives will work the best. These rank-ordered preferences are stable and transitive. What is bounded rationality and how does it differ from pure rationality? -Bounded rationality is a response to some problems with the comprehensively rational model, people don't have the capa...