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It will assume rational behavior of individuals and groups with respect to economic and political decision, given relevant constraints, but in a predominantly international context.
In the 1970s, Lucas and disciples take it up a notch, arguing that we should assume rational expectations: people make the best predictions possible given the available information.
Lambert also showed that the functions e x and tanx cannot assume rational values if x is a non-zero rational number.
Thus, we cannot simply assume rational expectation of reward based on neither previous stimulus reinforcement nor direct variation of apparent probability, particularly within gambling type tasks.
The economic models used to find deterrence assume rational behavior.
Cognitive-behavioral models generally assume rational processing of external information to inform action.
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The science of rational choice includes both research on the abstract conditions (or norms) governing human rationality and research that seeks to explain and predict outcomes assuming rational agency.
That view belongs to a school of modern macroeconomics that assumes rational expectations and perfectly functioning markets.
That is because they are designed assuming rational behaviour, whereas markets have a nasty tendency to react unpredictably.
While standard theory assumes rational, optimizing agents under full information, the latter is rarely found in reality.
The goal of this paper is to study the economic implications of this shift in Internet traffic control assuming rational ISPs and subscribers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com