When Rationality Becomes Irrational

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For many decision scientists, their starting point—drawn from economics—is a quantitative formula called Rational Choice Theory, allowing people to calculate and choose the best options. The problem is that this framework assumes an overly simplistic picture of the world, in which different types of values can be quantified and compared, leading to the "most rational" choice. Behavioral economics acknowledges that irrationality is common but still accepts the underlying belief from economics of what a rational decision should look like. Drawing from economics, psychology, and philosophy—and both inspired by and challenging Daniel Kahneman's Thinking, Fast and Slow —Barry Schwartz shows how…