Saturday, September 1, 2018

R-Rational B-Behaviour

HUMAN RATIONAL BEHAVIOR 

Rational behavior connects to decision making procedure that is based upon making choices that results in optimal level of satisfaction and benefit for an individual. Most economic theories are based upon assumption that all humans taking part in any action or activity behaves rationally.

Rationality is a state where people are rational on their thinking. It gives confirmation about one's belief on the reasons they are believing and even there actions .

Rational behavior dose not depend on a persons struggle to get the maximum return. A persons hate to take risk at certain point and can be considered rational at multiple levels depending on the goals and situations.

Example: Went to shop for buying a phone, compared two phone with its features and price and the one which gave me maximum satisfaction in less amount I bought that phone.

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