In situations where people make decisions with perfectly predictable consequences, traditional economic models cannot explain:
A)why people experience regret.
B)how people maximize their utility.
C)how risk aversion influences decisions.
D)what the rational choice should be.

Question

Quizplus · Accepted Answer

Traditional economic models rule out the possibility that people might regret having chosen behaviors whose consequences were perfectly predictable.

In Situations Where People Make Decisions with Perfectly Predictable Consequences