Quick econ thought

A lot of economic theory assumes a rational user in a rational market. As noted elsewhere, “rational” in this case isn’t what most of us think. The rational user is one who has all information to hand and makes a decision based on optimal personal benefit. The rational market is one in which all competitors are honest and fully informative.

The thought is that a role of government is to ensure to the greatest extent possible that the market is rational.

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