Rational behaviour refers to a decision-making process that is based on making choices that result in the optimal level of benefit for an individual. That means before you make a decision you consider benefits and downsides of making a certain choice. Let’s use the example to illustrate it. Imagine that you have decided to start going to the gym as you want to improve your physical conditioning and you have to decide to which gym you will go. There are 2 gyms near you. The question is how do you make a decision? I can tell you that most people will make an emotional decision and go with their gut. But if you want to make a decision that will give you the most benefits then you have to make a rational decision. You can do that by comparing the options that you have side by side and then making an informed decision. So you have Gym A and Gym B. Then you list the criteria that are important for you. That would be things like monthly price, Equipment available, opening times. Also, the distance to the gym as that will impact how much time you will have to spend to and from the gym. Once you look at this comparison you will be able to see pluses and minuses for each option and therefore make the best decisions. This exercise where you compare 2 or more options is called Pros and Cons exercise and it’s a great tool that you can use to make rational decisions in your life.
