Embracing Human Irrationality

Economic theory is grounded in rationality–when all humans “act in their best self-interest”. This seems like a logical statement. However, in recent decades, the new discipline of behavioral economics puts into question the very idea of human rationality in and of itself. Behavioral economists stipulate that humans are in fact, more often than not, quite irrational. This irrational behavior is inconsistent with logical reason and clear thinking. As human beings, not “Econs”, our emotions play a significant role in controlling our day to day decisions. Rather than striving to always be rational, we should instead embrace our irrationality.