There's a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave.
Interpretation
The quote highlights the rational behavior of individuals in economics, emphasizing that assuming people will take advantage of opportunities simplifies market analysis.
Daniel Kahneman explains that the development of economic theory is rooted in the assumption that individuals act in self-interest by exploiting available opportunities. This assumption, while not universally true, offers a practical framework for understanding market behavior, making it easier to analyze economic scenarios and predict outcomes.
In practice
In a lecture on economic theories, one might quote Kahneman to discuss rational behavior in markets.
We think, each of us, that we're much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it's the other way around. We believe in the reasons, because we've already made the decision.
The average investor's return is significantly lower than market indices due primarily to market timing.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
Laziness is built deep into our nature.
Through some combination of culture and biology, our minds are intuitively receptive to religion.
You are more likely to learn something by finding surprises in your own behavior than by hearing surprising facts about people in general.
In the absence of any other proof, the thumb alone would convince me of God's existence.
Direct action against the authority in the shop, direct action against the authority of the law, direct action against the invasive, meddlesome authority of our moral code, is the logical, consistent method of Anarchism. Will it not lead to a revolution? Indeed, it will. No real social change has ever come without a revolution. People are either not familiar with their history, or they have not yet learned that revolution is but thought carried into action.
With all the other -isms that we deal with, that sort of nameless -ism that we have in too many of our hearts against the poor in this country is what wounds us most broadly.
Adults...struggle desperately with fiction, demanding constantly that it conform to the rules of everyday life. Adults foolishly demand to know how Superman can possibly fly, or how Batman can possibly run a multibillion-dollar business empire during the day and fight crime at night, when the answer is obvious even to the smallest child: because it's not real.
Time is the old justice that examines all such offenders, and let Time try.
When we don't like to face up to hard facts, we use soft words. We do not speak about killing a baby within the womb, but about "termination of potential life." Words are often multiplied to try to cover dark deeds.
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