Because the behavioral economics approach suggests many alternative behaviors that people might exhibit if they fail to behave as if they are rational, this approach
A) often fails to provide clearly testable behavioral predictions.
B) reproduces the same predictions as utility analysis.
C) has an over reliance on the rationality assumption.
D) ignores the possibility of bounded rationality.

Question

Quizplus · Accepted Answer

The behavioral economics approach suggests that there are many alternative behaviors that people might exhibit if they fail to behave as if they are rational. Because of this, it often fails to provide clearly testable behavioral predictions.

Because the Behavioral Economics Approach Suggests Many Alternative Behaviors That