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23 - THE RELEVANCE OF QUASI RATIONALITY IN COMPETITIVE MARKETS

Published online by Cambridge University Press:  01 March 2011

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Summary

Smart

My dad gave me one dollar bill

‘cause I'm his smartest son,

And I swapped it for two shiny quarters

‘cause two is more than one!

And then I took the quarters

And traded them to Lou

For three dimes – I guess he don't know

That three is more than two!

Just then, along came old blind Bates

And just ‘cause he can't see

He gave me four nickels for my three dimes

And four is more than three!

And I took the nickels to Hiram Coombs

Down at the seed-feed store,

And the fool gave me five pennies for them,

And five is more than four!

And then I went and showed my dad,

And he got red in the cheeks

And closed his eyes and shook his head –

Too proud of me to speak!

Shel Silverstein

Where the Sidewalk Ends

Copyright © 1974 by Snake Eye Music, Inc.

New York: Harper & Row, 1974

(Reproduced with permission of the publisher)

Economists generally attribute considerable rationality to the agents in their models. The recent popularity of rational expectations models is more an example of a general tendency than a radical departure. Since rationality is simply assumed, there is little in the literature to suggest what would happen if some agents were not rational.

Type
Chapter
Information
Decision Making
Descriptive, Normative, and Prescriptive Interactions
, pp. 508 - 524
Publisher: Cambridge University Press
Print publication year: 1988

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