In 1990,Richard Thaler,a behavioral economist,said the following with respect to the standard economic model:
The problem seems to be that while economists have gotten increasingly sophisticated and clever,consumers have remained decidedly human.
Which statement below best describes what Thaler implies in this sentence?

Question

Quizplus · Accepted Answer

Thaler is criticizing the standard economic model for assuming that people always act rationally and in their best self-interest (like the fictional character of Homo economicus). He argues that this model fails to account for the fact that humans are imperfect, emotional beings who often make decisions that are not strictly rational. Therefore, he suggests that the traditional economic model needs to be revised to include human nature and behavior.

In 1990,Richard Thaler,a Behavioral Economist,said the Following with Respect to the Standard