Challenging Economic Assumptions
Economist John Kay discusses the limitations of economic models and the dangers of assuming that people always act in their own self-interest. He argues that the real world is far more complex and uncertain than traditional economic theories suggest. Host Russ Roberts agrees, emphasizing that life is not an optimization problem and that we should be cautious about using economic models to make policy recommendations.In this clip
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EconTalk
John Kay and Mervyn King on Radical Uncertainty
Related Questions
What do people talk about in behavioral economics?
I have a question about the episode The problem with optimizing our lives (w/ Barry Schwartz and Coco Krumme) and the clip Maximizing vs. Satisficing regarding maximizers in the context of the choice paradox.
I have a question about the episode The problem with optimizing our lives (w/ Barry Schwartz and Coco Krumme) and the clip Maximizing vs. Satisficing in the context of maximizers and the choice paradox.