There is much evidence that people are not rational, in the economist’s sense; nor do they take into account expectation, in the precise interpretati… - Dennis Lindley

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There is much evidence that people are not rational, in the economist’s sense; nor do they take into account expectation, in the precise interpretation of that word. As a result economic theory often does not correspond with what happens in the market. Some would argue that we need descriptive economics. I would argue that all should be taught about probability, utility, and MEU (maximization of expected utility) and act accordingly.