Select the choices where the decision maker is rationally ignorant.
- An employer is deciding between two potential temporary employees for a short-term position. Knowing from past experience that it is difficult to predict the quality of a potential employee in advance, the employer flips a coin to decide which employee to hire instead of paying for a background check.
- After more than 40 years in the same job, Taylor knows it is unnecessary to learn how to use a computer.
- Tax evasion is very high in a country. The revenue and tax department finds it very profitable to investigate a small percentage of potential tax evaders.
- The PPACA Act, at 906 pages, was passed before legislators had an opportunity to read it.
- When hiring a plumber, Donnie always looks up ratings on several online services.
- The U.S. Constitution is adopted, finally, in 1790 after the 13th state, Rhode Island, signs it. This is a couple years after the other states.
- A rider in a school bond election pass, then becomes a controversy when the local newspaper reports details.
The correct answer and explanation is:
The correct choices where the decision maker is rationally ignorant are:
- The PPACA Act, at 906 pages, was passed before legislators had an opportunity to read it.
- A rider in a school bond election passed, then became a controversy when the local newspaper reported details.
Explanation:
Rational ignorance occurs when a decision-maker consciously chooses to remain uninformed because the cost of acquiring information outweighs the perceived benefits. This is particularly relevant in cases where the effort required to gather and process information is high, but the decision’s impact on the individual or entity is relatively small.
- The PPACA Act (Patient Protection and Affordable Care Act) was passed before legislators had time to read it.
- Legislators often pass complex bills containing hundreds of pages of legal text. Given time constraints and the high opportunity cost of reading and understanding every detail, many lawmakers rely on summaries, aides, or party leaders instead of reviewing the full text. Since the probability of an individual lawmaker’s vote significantly altering the bill’s outcome is low, they may rationally choose ignorance rather than investing effort into detailed analysis.
- A rider in a school bond election became controversial only after the local newspaper reported details.
- Voters often do not have the time, expertise, or inclination to analyze all components of ballot measures, especially when they contain hidden provisions or “riders” attached to them. Many individuals cast votes based on general knowledge, campaign messaging, or party affiliation, rather than conducting deep research into every clause. Only after the media uncovered controversial details did public awareness rise, demonstrating that voters were rationally ignorant at the time of the election.
Both cases illustrate how individuals or groups may opt for ignorance when the cost of obtaining complete information outweighs the expected benefits.
Now, I will generate an image representing this concept.
Here is the generated image illustrating rational ignorance in a political setting. Let me know if you need any modifications or a different perspective!
