Exploiting Consumer Irrationality

A fundamental assumption underlying economic theory is that the market, through consumer choice, represents the most efficient mechanism through which to satisfy societal needs and interests. The notion of a free market is often combined with the notion of freedom because consumers have the power to address social needs through their purchasing decisions. But a fundamental assumption underlying this assertion is that consumers make choices rationally. In 1974, two economists published an article that has had profound implications for our understanding of how people make decisions in their everyday lives. Nobel Prize winners Amos Tversky and Daniel Kahneman presented strong evidence to sug

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