Traditional economists base their models of human behavior on simplifying assumptions regarding rationality and decision making.

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Traditional economists assume that individuals are rational and make decisions based on a careful analysis of costs and benefits. This assumption helps in creating mathematical models to understand human behavior. However, critics argue that this assumption is a simplification of real-world decision-making and does not account for emotions, biases, and social influences.

Traditional Economists Base Their Models of Human Behavior on Simplifying