Alan Joyce Qantas
Qantas CEO, Alan Joyce

In the neoclassical school of economics that has come to dominate much of political decision making since the 1980s, there is an assumption that people act rationally based on the information at hand -- rational choice theory.

This theory holds that, when presented with a problem, people make rational choices between potential courses of action to arrive at the optimum choice for that particular situation.

But what happens when people don’t act rationally?