The Problems with Traditional Economic Models of Choice

Most economists understand choice to be a matter of picking the best option available to a person, such as filling your shopping cart with great bargains or selecting an automobile based on getting the best options for a good price. Sounds reasonable, right? Sure, but once we tease out the meanings of “best” and “available”—as well as other terms that economists use when they discuss choice, such as “preferences” and “well-being”—we see that the standard economic model of choice is anything but reasonable. When you get down to it, it doesn’t involve any actual choosing or deciding: you see, and you want, so you get. This might be fine to describe your dog’s “choices,” but not yours or mine—we deserve a better model, and economists need one.