If an entrepreneur decides to prioritize certain factors over others, who's to say that's "irrational"? Is there an objectively correct way to run a business? I just find the whole idea so tiresome.
If an entrepreneur decides to prioritize certain factors over others, who's to say that's "irrational"? Is there an objectively correct way to run a business? I just find the whole idea so tiresome.
Humans are inherently irrational. We try to emulate rational behavior because a logic gives us certainity and lets us feel secure about the outcomes, but we are physically incapable of acting in a logical way for several reasons. We don't have enough data to make a fully justified decision in every situation, and if we did, it would still cost too much energy for our meat brains to actually compute those decisions.
So we approximate rational behavior, making statistical guesses. With enough data (experience), those guesses are good. Other times, your guesses are bad. Sometimes you have barely any data at all and are forced to choose between several options that all carry risks, so you go with your instinct. Is it rational? No, but it might have been the least bad choice, as in real-world, real-time situations, failure to make any choice whatsoever is itself a choice, and usually a bad one.
ps: I come from the AI field so I have no idea how any of this relates to economics.
I'd argue the opposite.
Rationality is using a reasoned approach to decision making. In a neural net, that reasoning is embedded in the net. You may disagree with its conclusion or its internal steps, but it does follow a clear line of reasoning.
Many bad arguments are made due to conflating these meanings. So much so that I inclined to agree with the grandparent that talking about things being "rational" or not isn't very helpful.
There are no end of objectively irrational behaviors, although we rarely have enough insight into other people's lives to identify them, or the clarity of mind, accuracy of memory and commitment to reflection to see them in ourselves.
A serviceable but vacuous definition is "the procedure by which a decision is reached." Note that it is vacuous in that it imposes no constraints (not even repeatability/consistency), so anything that results in a decision fits the definition.
It is serviceable because if you want a better definition, you have to argue deviations/changes - eg consistency. You'll find it to be a choice, not a requirement. Eg: Batman's Joker behaves according to his rules. The end result may be unpredictable, but that doesn't mean the decision process doesn't follow his rules.