3.1 - rationality (objectives of economic agents)
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why may agents behave irrationally: time orientation
short term benefits vs long term benefits
some do not consider the long term
why may agents behave irrationally: lack of pricing information
you dont know what products are cheaper
you buy from utility, whatever happens to be easier to get
asymmetric info
why may agents behave irrationally: emotions/impulse
irrational
buying without judegement, just emotion
might not even use the product
why may agents behave irrationally: inertia
economic agents dont want to change behaviour
e.g. customer loyalty/ease
it can also be costly/difficult to change behaviour
status quo
why may agents behave irrationally: social norms
tipping culture
e.g. preferring iphone over android
can’t maximise utility focusing on this
why may agents behave irrationally: loss aversion
consumers avoid risks (even if it means you cant maximise satisfaction)
fear
consumers will switch to less satisfying options just to avoid risk
Note 
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