The origins of economics

“Adam could deal with apples — as long as there were no serpents and women,” Mr. Thaler added. “When you add serpents and women, you get self-control problems that the model cannot deal with.”

Most people on the panel accepted that the mainstream model of rational human beings who maximize utility within budget constraints, expertly making cost-benefit analyses by comparing the net present value of their options, no longer works.

The origins of economics « Nudge blog

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