2.4 Critique of the maximizing behaviour of consumers and producersSyllabusFirst assessment 2022Topic2.4Level—
What you’ll learn3 learning objectivesChoose one objective for a focused lesson, or study the complete topic.2.4.1(HL)—Rational consumer choice• Rational consumer choice assumes consumer rationality, utility maximization, and perfect information• Behavioural economics critiques these assumptions• Limitations include rule of thumb, anchoring, framing, availability bias, bounded rationality, bounded self-control, bounded selfishness, and imperfect informationSyllabus objective2.4.2(HL)—Behavioural economics in action• Choice architecture includes default, restricted, and mandated choices• Nudge theory uses behavioural insights to influence decisionsSyllabus objective2.4.3(HL)—Business objectives• Firms may pursue profit maximization• Alternative objectives include corporate social responsibility, market share, satisficing, and growthSyllabus objective