What is the criterion for distinguishing rationality from irrationality in economic behavior? 5

The rationality of economic behavior means that the judgment of a matter is based on objective facts, while the emotional (irrational) is based on the subjective feelings of the individual. For example, when a merchant sells a product, and the buyer cuts the product to the total cost of Canadian dollars (i.e., the net profit of the merchant selling the product is 1 dime), if the merchant is rational, then he will sell the product. The reason for this is that it has a profit of 1 dime.

However, if the merchant is emotional, then he will choose to give up the transaction because the profit is so low and not at all the profit point he wanted before. As a result, he lost 1 cent of his profit. Hope it helps.

Rationality is to be able to make correct judgments and choose what is beneficial to oneself according to the gains and losses.

Rationality is to buy what you should buy. Don't buy something you shouldn't buy, like you see a watch in the mall. Usually it costs 1000, and the current price is only 500, so from a rational point of view, if you have it at home or don't need it.

Even if the watch was only 100, I would choose not to buy it. Because it's useless to buy it, you can never buy it. 100 yuan is also money.

So if it's emotional, it's like a woman shopping, you can never finish buying, and you want the next one after buying this one... Hope it helps.

Whether the thing you buy is practical or not is a criterion.

Rationality: One of the most basic provisions of rationality in economics is that the cost is less than the benefit, or the benefit is greater than the cost; The second basic provision is Pareto improvement, that is, the increase of the interests of one party without making the interests of the other party worse; The third of the most basic stipulations is to think like an economic man, so that rationality can be used to face any problem, and when it comes to emotions or emotions, rational behavior also exists, although it is often said"Irrational", but we are not interested in this"Irrational behavior"For example, when you want to kill someone, your rationality determines the manifestation and result of your behavior, killing will bear the responsibility for killing, killing will cause harm to the other party's family, killing will make the interests of the other party disappear completely, killing will make yourself and your family bear harm, and so on.

Expectations can be basically categorized as:

1. Static expectations;

2. Extrapolated expectations;

3. Adaptive expectations;

4. Rational expectations.

The first three can be seen as "irrational expectations".

Extended Materials. Rational expectation means that in order to avoid losses and seek maximum benefits, economic parties will try to use all available information to make as accurate an estimate of the future changes of the economic variables they are concerned about.

The rational expectation school believes that the economic policy of the first class tends to be ineffective, that is, the policy may be effective in the early stage of implementation, but when people rationally anticipate the policy goal, they will take corresponding actions to offset the policy effect. Because they believe that economic policy is effective, an important premise is that people are ignorant of the goals of the policy and the intermediate variables that can be used to achieve them. People will automatically become pawns of the policy in the process of policy implementation.

But when people have rational expectations, policies are ineffective.

The theory of economic policy invalidity is the ultimate theoretical element of rational expectations, so the policy they propose is to make full use of the market's ability to self-regulate, and avoid unnecessary intervention in the economy.

Rationality and irrationality are relative in the buying process. In fact, this has to start with values, and the cultivation and final formation of values, I can't really say that there is nothing greasy in it.

Unlike producers and sellers, the consumer must be the end user of the products and services rather than the producer or operator. That is, he or she buys goods primarily for personal or family needs rather than for business or sale, which is one of the most essential characteristics of a consumer.

As a consumer, the content of his laughter or consumption activities includes not only the purchase and use of products for personal and family needs, but also the acceptance of services provided by others for personal and family needs. However, whether it is the purchase and use of goods or the receipt of services, the purpose is only to meet the needs of individuals and families, not the needs of production and business.

In layman's terms, a rational person is a person who has a clear goal and knows how to achieve it, a shrewd person, and a person who acts logically.

It is determined by the individual's level of trust in what others think they should do, as well as their own level of motivation to align with the opinions of others. Combined, these factors create behavioral intentions (tendencies) that ultimately lead to behavioral changes.

This theory holds that an individual's behavior can be reasonably inferred from behavioral intentions to some extent, which in turn are determined by attitudes and subjective norms towards behaviors. A person's behavioral intention is a measure of people's intention to engage in a particular behavior, while attitude is the positive or negative emotion that people have about engaging in a certain target behavior.

It is determined by a primary belief in the outcome of a behavior and an estimate of the importance of such an outcome. Subjective norms (subjective norms) refer to the degree to which people perceive that they want to use a new system themselves by people who feel that they have an important influence.

Rational behavior believes that an individual's behavior can be reasonably inferred from behavioral intentions to some extent, which in turn are determined by attitudes and subjective norms towards behaviors.

A person's behavioral intention is a measure of people's intention to engage in a particular behavior, while attitude is the positive or negative emotion that people have about engaging in a certain target behavior, which is determined by the primary belief in the outcome of the behavior and the estimation of the importance of that outcome.

I think rational behavior is to weigh all the benefits and losses as much as possible, and to be clear about your purpose.

People are not rational all the time. But traditional economics always assumes that people are rational.

The above sentence is a point I heard in Xue Zhaofeng's economics class.

Now there is behavioral economics, that is, psychology is added to traditional economics.