Why Is Rational Irrationality More Prevalent In Political Than In Market Decision-Making?

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2. Why are rational ignorance and rational irrationality more prevalent in political than in market decision-making? Given their prevalence in politics, what implications do you think this has for how political institutions should be designed or the frequency and number of elections in a democratic society? Rational ignorance occurs when it is in the best interest of rational people to stay uninformed. This occurs because information is costly to gather, process, and act on. These costs associated with becoming informed outweigh the benefits of the information. According to Huemer, rational irrationality occurs when it is “instrumentally rational to be epistemically irrational.” In other words, the cost of finding the truth often outweighs the benefit of forming true beliefs. In politics, …show more content…

Therefore, political institutions should be constructed to mitigate their effects. Huemer contends that we should try to understand political irrationality and adopt good practices such as identifying cases in which we are likely to be biased, collecting information from more than one side, and recognizing that other people may feed us bias information. However, it is unrealistic to expect voters or politicians to practice these behaviors on their own. I argue we should construct political institutions that do not allow for bias to disrupt the political system by using Buchanan’s generality principle. In a majoritarian political system, as the generality of policy decisions increases, the influence of irrational biases decreases. Thus, general interest is promoted above individual beliefs that are ignorant or unfounded. For example, Buchanan argues for uniform tax rates rather than a tax code with many exceptions. This way, individual beliefs about what conditions deserve more tax relief are not factored

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