we, the people, who make mistakes–economists included

Andrew Gelman discusses a “puzzle that’s been bugging [him] for a while“: Pop economists (or, at least, pop micro-economists) are often making one of two arguments: 1. People are rational and respond to incentives. Behavior that looks irrational is actually completely rational once you think like an economist. 2. People are irrational and they need … Continue reading we, the people, who make mistakes–economists included