Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger · chapter 2 · id poor-charlies-almanack-c2-06-munger-critiques-the-rational-

“Munger critiques the 'rational agent' assumption in economics, arguing that real humans are predictably irrational and economics must incorporate psychology to be useful.”

holdsconfidence: high✓ ZHP-verified + red-teamed

Receipts

Rabin, 'Risk Aversion and Expected-Utility Theory: A Calibration Theorem,' AER (2000)DOI registry: valid

Expected utility theory implies that a person who turns down a 50-50 gamble of losing $100/gaining $110 would also turn down losing $1,000/gaining $1 billion. This is absurd.

Thaler, 'Behavioral Economics: Past, Present, and Future,' AER (2016)FLAGGED: DOI not in registry

The evidence overwhelmingly shows people do not behave rationally, and models that ignore this produce systematically wrong predictions.

This claim is a stable, citable object. If you can falsify a verdict, tell us — corrections are loud here.