Why We Don´t Ways Act Rationally

515 Words3 Pages
Having studied Economics at A level, I was intrigued to learn that human behaviour does not always follow the logical predictions of neo-classical models. I was perplexed as to why it was such an anomaly and so decided to do some further reading in the hope of gaining a greater understanding as to why people do not always seemingly act rationally and hence why their decisions cannot always be predicted with certainty. ‘Poor Economics’ by Banerjee and Duflo explained to me the reasoning behind many seemingly illogical decisions made by the poor. For example, previously had I been asked whether bed nets which prevent malaria should be given out for free, knowing not everyone who is at risk sleeps under a net, I would have instantly said yes they should without thinking twice. However, Economics has changed the way I look at problems and encouraged me to think deeper before forming an opinion. I am now inclined to question the situation rather than making assumptions. In this case I learnt that due to information failure some people are unaware of the extensive benefits of nets not jus...
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