In behavioral economics, the term “irrational” refers to behavior that is not in line with the traditional assumptions of economic theory. In other words, it is behavior that does not conform to the model of a rational, self-interested individual who makes decisions based on maximizing their own utility or profit. Instead, this behavior is influenced by a variety of psychological, emotional, and social factors, and may not always result in the best outcome for the individual or the group. Irrational behavior can lead to suboptimal outcomes and decision-making, and it is a key area of study in behavioral economics.
