Topics

Computational Weakness

Irrationality arises when consumer’s decisions are dominated by computational weakness. This occurs when consumers find it difficult to calculate the probability of something happening when they make purchasing decisions. For example, people may underestimate the long-term health consequences of eating processed meats or relying heavily on prescription painkillers.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.