The Myth of Rationality: Why Homo Economicus Doesn't Exist

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The Myth of Rationality: Why Homo Economicus Doesn't Exist

Education


Would you take ₹1,000 right now or ₹1,200 a month from now? Most people pick the cash today, and that's exactly why "Homo economicus," the perfectly rational decision-maker of traditional economics, doesn't actually exist. In this episode, Ridhima and Rajnandini unpack bounded rationality, cognitive biases like loss aversion and present bias, and why "70% off, only 2 hours left" beats hours of careful research every time. A quick "Rational or Human?" game proves just how far real behaviour strays from the textbook model.