Originally Posted by
kfahmi
One crucial thing missing from classical economic theory is that it assumes all players have perfect information, and that is most certainly not the case. Dangle the keys to an RJ in front of a 250-hour AllATPs grad, and he/she most likely won't come on these forums and learn the realities of the profession before accepting.
Plus, classical economic theory also assumes all actors are purely rational, which is far from the case. When you've got hundreds of thousands of people who simply love to fly, and who derive emotional satisfaction from flying that to some degree compensates for their decreased wages, you have what classical economists would call an 'irrational actor.' We just call it SJS
(I majored in economics at Princeton and also have a master's in it, but sadly after 20 years I can't say I remember much)
Thanks for posting that. I use that perfect information argument all the time, to argue with all the "100% free marketers" out there.
Although, the amt. of info available now is playing a large part in combating SJS. The market is NOT rational; just look at the average investor for proof of that. It's also up to us to educate the newbies as much as possible. 14 years ago, i didn't have this kind of info.