economists generally postulate that humans are rational. Not that every action of each person is weighed and considered, but rather that, on average, people seeking the best way possible to achieve their goals. Thus, we can predict that people respond to incentives (for example, if the opportunity cost of any action increases, the less people will undertake this action). In this regard, see one of my previous posts . A
interesting debate was held recently in this regard between Tim Harford, a supporter of the orthodox approach and Dan Ariely, who does research in Behavioral Economics. They are each published a book that illuminates the economic position and that of psychologists.
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