Restrictions and Infringement of the Choice Model in Economy

Economists suppose that people are well informed and are completely rational when making their decisions. This is of course a very strong assumption. The mode of human behavior that the economists prefer works well most of the time, but it does not always allow them to make exact predictions about what people are going to do. In real life and in the real world, people are not always well informed about the decisions they need to make and are not always so rational or logical as economists suppose they are.

Decision Making Without Information
When economists apply the model of choice, they suppose a situation in which a person knows all the possible options and is aware about how much utility each will provide, as well as their cost opportunity. But how is it that people know where it is best to go on vacations? Since in many occasions people have never been to the places they choose for vacationing, they are not well informed about the restrictions ad the costs of the choice and probably do not know which are the utilities of both options.

Some politicians with new programs frequently ask people to make a choice without providing enough information. They make their proposals sound as good as they possibly can, but in many cases nobody knows what they are getting into.

There is no clarity either when decisions are made about occasional events. Take the example of people that buy lottery tickets in certain lotteries in which the prize depends on how many bills are sold, and they have no idea of a possible win or the probability of winning, because both the sizes of the prize as the probability of winning depend on factors that are not known of before the toss up begins.

Economists justify this reality supposing that when people confront decisions without having enough information, they estimate in the best way possible not only the aleatory results but also how much they can like or dislike things with which they have not had any previous experience. 

It is difficult to say if people choose well when they are not well informed. It is obvious that they would rather be well informed before choosing, and there are even some people that draw back because they get scared of the more uncertain options. However, in general, the behavioral model of choice manages the situations of incomplete information well and of uncertainty over aleatory results.