Rational economic theory, which is founded on the principle of maximizing expected utility, fails to predict consumer behavior in certain scenarios because it does not account for the realistic context of decision-making, including environmental and psychological factors.

Authors

• Person: Paul Conner Organization: Quirk's
  Behavioral economics: what it is and three ways marketers can use it

Sources

• Behavioral economics: what it is and three ways marketers can use it www.quirks.com Paul Conner · Quirk's via serper

Referenced by nodes (2)

• rational economic theory concept
• consumer behavior concept