Utility and Rationality
Economists propose that individuals behave as if they are maximizing a utility function, despite the complexities of real-world decision-making. Perfect rationality and perfect information are idealized assumptions that rarely hold true, leading to discrepancies in predictions. Yet, even with these limitations, people often make choices that align reasonably well with utility maximization principles, such as responding to price changes and weighing benefits against difficulties.In this clip
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The Science of Everything Podcast
Episode 36: Consumer Choice Theory
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