Where is our Rational Consumer?
admin2023-03-21T13:23:46+00:00Najia Tasnim, Jahangirnagar University
In economics, we always count on the rationality of every economic agent, though we know it hardly resembles reality. A rational consumer always wants to maximize his utility, and most importantly, knows HOW to do this. Where in reality, nobody knows that exactly (except some advertisements agencies?)
In economics, a rational consumer never asks: “Why am I having this desire?” To call it an economic demand, you don’t need the “why”. You just need to feel the urge, ability to pay (or charge it on your credit card) and plan to buy it. That question of “why” would only be reserved for the behavioral economists’ brainstorming, not for the consumer himself (even though we consider him as rational).
Let’s all, for a moment, look at a person that gets brainwashed by each and every advertisement or provocation, and also has no control over his desire. Is any of this, at all, a rational behavior?
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