[T]he assumption describes our actions, not our thoughts. If you had to understand something intellectually in order to do it, none of us would be ab… - David D. Friedman
" "[T]he assumption describes our actions, not our thoughts. If you had to understand something intellectually in order to do it, none of us would be able to walk.
Economics is based on the assumption that people have reasonably simple objectives and choose means to achieve them. Both assumptions are false-but useful.
Suppose someone is rational only half the time. Since there is generally one right way of doing things and many wrong ways, the rational behavior can be predicted but the irrational cannot. If we assume he is rational, we predict his behavior correctly about half of the tie - far from perfect, but a lot better then nothing. If I could do well at the racetrack I would be a very rich man.
[R]ationality is an assumption I make about other people. I know myself.
[R]ationality is an assumption I make about other people. I know myself well enough to allow for the consequences of my own irrationality. But for the vast mass of my fellow humans, about whom I know very little, rationality is the best predictive assumption available. (pp.3-5)
English
Collect this quote
About David D. Friedman
David Director Friedman (born February 2, 1945) is a law professor and writer, who became a leading figure in the anarcho-capitalist community.
Also Known As
Native Name:
David Friedman
Alternative Names:
David Director Friedman
Related quotes. More quotes will automatically load as you scroll down, or you can use the load more buttons.
Additional quotes by David D. Friedman
We must ask, not whether an anarcho-capitalist society would be safe from a power grab by the men with the guns (safety is not an available option), but whether it would be safer than our society is from a comparable seizure of power by the men with the guns. I think the answer is yes. In our society, the men who must engineer such a coup are politicians, military officers, and policemen, men selected precisely for the characteristic of desiring power and being good at using it. They are men who already believe that they have a right to push other men around - that is their job. They are particularly well qualified for the job of seizing power. Under anarcho-capitalism the men in control of protection agencies are selected for their ability to run an efficient business and please their customers. It is always possible that some will turn out to be secret power freaks as well, but it is surely less likely than under our system where the corresponding jobs are labeled 'non-power freaks need not apply'. (pp. 123-124)
Loading...