E. So far, so good. Avoid them in the first place. Learn from the systematic mistakes they do happen to make. Just as economists think of agents weighing the costs and benefits of information , so too can we think of agents weighing the costs and benefits of rationality . In other words, we can think of irrationality as a normal good.
People derive comfort, security, and sense of identity from their belief structure.
Moreover, rational thinking is often hard, painful, discouraging work. It is the material success that you give up in order to retain systematically mistaken beliefs. Neoclassical demand for irrationality 2. Perhaps they consume none at all - on at least some issues, they might be fully rational. When the price of irrationality is low, people consume more.