Rational choice theory (RCT) theorists believe that most human decisions are based on maximizing a person's own benefits, while minimizing that which can hurt the individual, according to Business ...

Learn how behaviorists explain market inefficiencies through human psychology. Discover key concepts in behavioral economics and finance that challenge rational models.

Discover the Dollar Auction game, a fascinating paradox of rational choice theory, where bidding strategies can lead to surprising outcomes. Learn how it challenges logical decisions.

A half-decade after the first systematic applications of prospect theory to international relations, scholars continue to debate its potential utility as a theoretical framework. Key questions include ...

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We consider an individual who lacks the information-processing capacity required for a direct comparison of all feasible allocations. Instead of finding at once a best allocation, the individual ...

Journal Editorial Report: GOP candidates square off in first primary debate and clash over aid to Ukraine. Image: Win McNamee/Getty Images Say this much for Vivek Ramaswamy: He has an impressive ...

Whether deliberating about politics, the colors of a dress, or whether pineapple belongs on pizza, it’s hard not to be struck by how quickly and deeply people can become entrenched in their beliefs ...

The European Union should safeguard its interests and make the “rational choice” of turning further towards China given the uncertainty generated by the new administration in the United States, ...