The rationality of irrational decisions: a new perspective of behavioural economics
by Mahmoud Yousef Askari; Ghaleb A. El Refae
International Journal of Economics and Business Research (IJEBR), Vol. 17, No. 4, 2019

Abstract: This paper is an attempt to contribute to the field of behavioural economics by proposing a new perspective of utility and rational decision making. We use the method of thought experiment, as well as, hypothetical examples of decision making to explain the rationality of decisions that might be seen by economics as irrational. We hypothesise that all decisions are rational at the individual level, and that all decisions are justified by decision makers and maximise the decision maker's perceived utility. To do this, we redefine rationality at the decision maker's level, and we explain how individuals customise rationales for their own actions to make decisions that maximise their perceived utility. We also redefine utility to include both tangible and intangible dimensions, and we discuss how the customisation of rationales and the perception of utility at the individual level make all decisions rational. We also propose a model to hypothetically calculate full utility attainment (maximum utility) by the individual.

Online publication date: Wed, 27-Mar-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com