Are People Rational (in the Economist’s Sense) and Reasonable (in the Lawyer’s Sense)? Whatever Your Answer to That Question, Does It Matter?
“It has been said something as small as the flutter of a butterfly’s wing can ultimately cause a typhoon halfway around the world.” ~ Chaos Theory
Everyday, you make decisions that affect the path that you have taken, to different degrees, resulting in the current situation you now find yourself in. Chaos Theory reflects the fact that however small the decision may be, the consequences have the potential to be substantial. These day-to-day decisions, may have huge implications on tomorrow’s, thus one would believe/hope that they are made rationally and reasonably. This essay aims to discuss whether these decisions we make are rational in the economic sense and reasonable in the lawyer’s sense and whether it ultimately matters?
Rationality and reasonability are inseparable from decisions (Sibley; 1953). Every decision an individual makes is made, perhaps unconsciously, in the belief that it is rational and reasonable in their current environment as we would not make them otherwise. Their rationality and reasonability comes under scrutiny from third parties, after the decision has been made with the benefit of hindsight (Sibley; 1953). The opinions I express on every case study that follows is of course one with hindsight, it is impossible for me to put myself in exactly the same situation as the individual who made the decision due to different life experiences in the short (on the day) and long (that month or the rest of his/her life) term. We believe there is a rational explanation for any decision’s success of or failure (Mankiw & Taylor; 2006). As we analyse the outcome of a decision, we are uncomfortable unless we can find solid evidence to explain what happened. We have difficulty in accepting the chaos of life as an answer (Hoffer; 1985).
The Oxford English Dictionary defines the colloquial meaning of the word rational (of a person) as being “able to think clearly, sensibly and logically” (OED; 2004). The economist believes that rational people
Everyday, you make decisions that affect the path that you have taken, to different degrees, resulting in the current situation you now find yourself in. Chaos Theory reflects the fact that however small the decision may be, the consequences have the potential to be substantial. These day-to-day decisions, may have huge implications on tomorrow’s, thus one would believe/hope that they are made rationally and reasonably. This essay aims to discuss whether these decisions we make are rational in the economic sense and reasonable in the lawyer’s sense and whether it ultimately matters?
Rationality and reasonability are inseparable from decisions (Sibley; 1953). Every decision an individual makes is made, perhaps unconsciously, in the belief that it is rational and reasonable in their current environment as we would not make them otherwise. Their rationality and reasonability comes under scrutiny from third parties, after the decision has been made with the benefit of hindsight (Sibley; 1953). The opinions I express on every case study that follows is of course one with hindsight, it is impossible for me to put myself in exactly the same situation as the individual who made the decision due to different life experiences in the short (on the day) and long (that month or the rest of his/her life) term. We believe there is a rational explanation for any decision’s success of or failure (Mankiw & Taylor; 2006). As we analyse the outcome of a decision, we are uncomfortable unless we can find solid evidence to explain what happened. We have difficulty in accepting the chaos of life as an answer (Hoffer; 1985).
The Oxford English Dictionary defines the colloquial meaning of the word rational (of a person) as being “able to think clearly, sensibly and logically” (OED; 2004). The economist believes that rational people
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