If the decision is literally a "no-brainer," then failing to consider alternatives is rational.
>>>??!!! Not if they make the wrong choice! OK, I suppose you are going to argue that >all the people who didn't have a clue what the return to continuing their education >was are the ones for whom it was a no brainer and the ones who were about to drop out >all answered my questions correctly. I can't prove that wrong but do you really >believe that was what was going on? Marginal students frequently weigh continuing vs. dropping out (just like they weigh attending vs. not attending!). >>>Agreed, but it is my contention that they don't deal with the future returns in a >way an economist would judge as rational. Incidentally, most of your arguments (here and later in this discussion) suggest that people over-estimate the return to education. Is that your real view? >>>If you ask people to think about it my guess is that the average person attending a >four year college will give you a response suggesting that they over estimate how >much money they will make either when they graduate or if they drop out. The only >evidence I have on this (my survey of Berkeley undergrads taking intermediate macro) >suggests that they over estimate the percentage return as well. However, I don't >think people act on this information. It is my strong impression that people >tremendously overweight their current feelings of happiness or unhappiness about >being in school so that on net people don't get as much schooling as they should if >they were truly utility maximizes. - - Bill William T. Dickens The Brookings Institution 1775 Massachusetts Avenue, NW Washington, DC 20036 Phone: (202) 797-6113 FAX: (202) 797-6181 E-MAIL: [EMAIL PROTECTED] AOL IM: wtdickens
