Quote:
Originally Posted by Terisa de morgan
You are getting it wrong. A rational maximizer means he tries to obtain the maximum benefit in term of his expectations, it doesn't mean those expectations are rational.
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I understand the concept of the rational maximizer quite well. A person who spends a fortune on a bag just for the name on it isn't making a rational caluculation from flawed premises. If there was some tangible benefit to the designer bag, such as being seen with it could lead to higher status, and result in benefits such as getting promotions at work, better service in stores etc., that might be a possibility. But even if there were such benefits, the rational maximizer would be buying the knock off. You get the same benefit of being seen with the expensive brand name, the only person that knows the difference is you.