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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 986 |
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The rational individuals that play understand the odds of winning, while the boundedly rational may not. So if the information was provided stating the odds of winning the lottery, the fully rational would not be effected but the boundedly rational would understand their mistake of believing that they will win...
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Another example is the "rent to own" concept of purchasing items such as furniture. The errors of the boundedly rational individuals could be corrected so that they understand that with the high interest rates, they are paying far too much for the item.
The lottery and the Rent-to-Own have lead to consumer and investor protection laws...
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General points of the essay
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