Identified departures from perfect rationality include:

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All of these choices are examples of departures from perfect rationality. Incoherent choices refer to situations where individuals make choices that contradict their own preferences. Bias towards the status quo occurs when individuals are more likely to stick to the current situation rather than opting for change, even if it may be more beneficial. Anchoring refers to the phenomenon where individuals rely too heavily on initial information when making decisions, without properly adjusting for new information. These departures from perfect rationality show that decision-making is not always entirely rational or optimal.

Identified Departures from Perfect Rationality Include