The Irrationality Behind Rationality

3 min read

The article unravels the myth behind the theory of rational decision making used in modern-day economics. The conventional economic theory defines rationality as an inherent characteristic of the homo sapiens. In simplistic yet significant terms, this means that any decision taken by us, human beings, are researched intensively and well-calculated ex-ante. So, when you go for grocery shopping, economists assume all that follows. That you know the current market price of all the vegetables and fruits available worldwide. That you have measured the distance from your home to these stores. That you have calculated the expense of fuel to reach…...

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Shereein Saraf Shereein Saraf is a student of economics interested in questions related to development, ranging from health and education to labour and insurance. As you might have guessed, she is one of those who can explain anything and everything using graphs and equations. However, she writes about the most perplexing development phenomena using none of these prominent economist's tools. She believes her work is coherent but at the same time develops a curiosity in the reader's mind to know much more about it and go beyond the scope of the article and the views presented in it. She is currently pursuing her undergraduate studies in economics at Shri ram College of Commerce, University of Delhi. Having interned as Government and Public Sector Consultant with PwC and volunteered at Goonj, an NGO based out of Delhi, she has gained an all-embracing experience. Hoping to proceed with her postgraduate studies in economics, she wants to build a better and more informed world around her.

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