Irrational Economic Agent

A Irrational Economic Agent is an economic agent who is an irrational behavioor (e.g. instinctual agent, a other-interested agent, and an agent with unstable tastes.)

• Example(s)
  • Alan Greenspan.
  • …
• Counter-Example(s):
  • a Rational Economic Agent.
• See: Human Agent, Rational Choice Theory, Bank Run, Endowment Instinct.

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References

2009

• (Ariely, 2009) ⇒ Dan Ariely. (2009). “Predictably Irrational: The Hidden Forces That Shape Our Decisions - revised and expanded edition." Harper-Collins New York. ISBN:978-0-06-135323-9
  • QUOTE: But in the wake of a number of financial crises, from the dot-com implosion of 2000 to the subprime mortgage crisis of 2008 and the financial meltdown that followed, we were rudely awakened to the reality that psychology and irrational behavior play a much larger role in the economy’s functioning than rational economists (and the rest of us) had been willing to admit.

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