Chapter 2 notes

Chapter 2 notes - Chapter Two: Making Rational Consumer...

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Chapter Two: Making Rational Consumer Choices Rational choice models presume that rational actors can : Identify all alternatives Rank alternatives in order of tastes/preferences Select the alternative that furthers our goals "Simply put, a ration actor alwats makes decisions that are consistent with his or her goals." Example: niece and crotch-rocket - shopped around and found the best deal Rationality DOES NOT necessarily imply: - Anything about the quantity/morality/wisdom of a person's decision - That rational behavior is smart or sensible - That given enough time and resources the "right" decision is made Why do these things impact our choices? Values? The fundamental concepts or high level preferences that regulate our behavior. Values influence lower-level tastes and preferences that affect our everyday lives. (pg.29) When Making Consumer Decisions: - Values generally aren't consciously taken into consideration Example of when they are taken into consideration? buying an electric car being a vegetarian But decisions are "better" when values and decisions are consistent. Goals?
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Chapter 2 notes - Chapter Two: Making Rational Consumer...

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