SEP can serve as a valuable guiding principle for the decision making process of each individual and each household, base on three concepts of moderation, reasonableness, and the need for self immunity.
People maximize their utilities, in reality, it is quite difficult.
Our decisions are influenced by
Recommendations from our friends
Family
Desire to be recognized by others.
Buy car or house
Symbol of society
Question for decision making?
- suitably moderate choice
- reasonable
- valuable/ over-exposed