Sunday, October 7, 2012

Quote of the Week

"I have often wondered why economists, with these absurdities all around them, so easily adopt the view that men act rationally. This may be because they study an economic system in which the discipline of the market ensures that, in a business setting, decisions are more or less rational. The employee of a corporation who buys something for $10 sells it for $8 is not likely to do so for long. Someone who, in a family setting, does much the same thing, may make his wife and children miserable throughout his life. A politician who wastes his country's resources on a grand scale may have a successful career."
Ronald Coase, "Comment on Thomas W. Hazlett" (hat tip Bryan Caplan's The Myth of the Rational Voter)

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