"Each individual family, then, does almost as well with a good rule of thumb as it would with perfect rationality—close enough to make perfect rationality an irrational goal. But now comes Akerlof's big insight: "near-rational" behavior and perfectly rational behavior have very different implications for policy."
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Academics from the United StatesJews from the United StatesPeople from New HavenEconomists from the United StatesNobel laureates in Economics
Original Language: English
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Sources
Paul Krugman, Peddling Prosperity (1994), Ch. 8 : In the Long Run Keynes is Still Alive
https://en.wikiquote.org/wiki/George_Akerlof
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George Akerlof
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