1- mavzu: Fanning nazariy mashg`ulotlari mazmuni

The rule of rational choice is that in trying to make themselves better off, people alter their behavior if the expected marginal benefits from doing so outweigh the expected marginal costs

In an uncertain world, the actual result of changing behavior may not always make people better off. However, as a matter of rationality, people are assumed to engage only in behavior that they think ahead of time will make them better off. That is, individuals will only pursue an activity if expected marginal benefits are greater than expected marginal costs, or E(MB) > E(MC).
The rule of rational choice is simply the rule of being sensible, and most economists believe that individuals act as if they are sensible and apply the rule of rational choice to their daily lives
We can use marginal thinking to evaluate pollution levels. We have to weigh the expected marginal benefits of a cleaner environment against the expected marginal costs of a cleaner environment. Zero pollution levels would be far too costly in terms of what we would have to give up.
Just as we can have optimal (or best) levels of pollution that are greater than zero, the same marginal thinking can be used to analyze crime and safety issues. What would it cost society to have zero crime? It would probably be impossible to eliminate crime. Regarding safety, the issue is not safe or unsafe products, but rather how much safety consumers want. (For example, Peltzman=s study of car safety regulations and increased reckless driving.)
In the News: Weighing the Benefits and Costs of Punting on Fourth Down