consumer rationality

(redirected from economic rationality)

consumer rationality

or

economic rationality

the assumption, in demand theory, that CONSUMERS attempt to obtain the greatest possible satisfaction from the money resources they have available when making purchases. Because economic theory tends to sum household demands in constructing market DEMAND CURVES, it is not important if a few households do not conform to rational behaviour as long as the majority of consumers or households act rationally. See ECONOMIC MAN.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
What took the place of that turbulent hype is an equally coldblooded and ruthless economic rationality. We now have one person from the IMF sitting in the State Bank whose only concern is to plug the current account deficit, another individual from the World Bank sitting in the finance ministry, whose only concern is to plug the fiscal deficit.
This might change because the commercial advantages for the EU make it sensible to, but so far the political imperative of demonstrating any country leaving the EU will be punished has triumphed over economic rationality.
A welcome reversal in the country's all-important current account deficit over the last seven months and other well-intentioned measures undertaken by the PTI government will probably result in a softening of earlier harsh IMF conditions, but the basic ailments afflicting the economy; declining GDP growth, lack of structural reforms, narrow tax base, monstrous debt, high imports and absurdly low exports; will continue to haunt the fiscal landscape, and need years of remedial economic rationality, pinching austerity, visionary (or at least consistent) fiscal policies and the bold political will that wins.
Things have progressed too far and the negotiations were too bruising to leave sufficient room for economic rationality to prevail.
It said it was suspending the project "from the viewpoint of its economic rationality as a private enterprise".
The decision was made from the viewpoint of Hitachi?s economic rationality as a private enterprise.
A statement issued by Hitachi read, "The decision was made from the viewpoint of Hitachi's economic rationality as a private enterprise," reported New York Times.
The Bank of Cyprus had set as a target the reform of its pay system, wanting to link pay rises to performance as economic rationality commands, but has got nowhere, believing Etyk would surrender its power to dictate wages for the good of the banks.
The Credit Economy and the Economic Rationality of Science, KEVIN J.
remains blinded by ideology, and thus is unable to see the benefits of a China guided by economic rationality.
Yet the US remains blinded by ideology, and thus is unable to see the benefits of a China guided by economic rationality.

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