Page L. Optimally Irrational: The Good Reasons We Behave the Way We Do

Cambridge University Press, 2023. — 306 p. — ISBN: 9781009209205.For a long time, economists have assumed that we were cold, self-centered, rational decision-makers – so-called Homo economicus; the last few decades have shattered this view. The world we live in and the situations we face are of course rich and complex, revealing puzzling aspects of our behavior. Optimally Irrational argues that our improved understanding of human behavior shows that apparent 'biases' are good solutions to practical problems – that many of the 'flaws' identified by behavioral economics are adaptive solutions. Page delivers an ambitious overview of the literature in behavioral economics and, through the exposition of these flaws and their meaning, presents a sort of unified theory of behaviouralism, cognitive psychology, and evolutionary biology. He gathers theoretical and empirical evidence about the causes of behavioral 'biases' and proposes a big picture of what the discipline means for economics.This self-contained structure will allow readers interested in one topic to jump in at specific points in the book.
The book's use of daily life examples will allow readers to gain insight into the abstract ideas of economic theories and their real-life applications.
The book ends with an in-depth discussion of the notion of rationality which is likely to interest economists and other behavioral scientists.