Juan Martín Morando, ‘Modelling under False Assumptions’

When the Rational Choice Model fails to explain or predict human behavior, the Behavioral Economics model becomes handy. This model bases its assumptions on the premise that people are not rational because heuristics and biases may influence their reasoning and behavior. We argue that there may be a better explanation: the assumption that people know the Law is false and that those erratic behaviors may be a product of their ignorance.

Morando, Juan Martín, Modelling under False Assumptions (February 1, 2023).

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