--- title: "Meaning & Key Takeaway of: In real markets, agents make bad choices…" description: "\"“In real markets, agents make bad choices. They are often ignorant, misinformed, and irrational. Yet, markets tend to punish agents for making bad choi..." image: "https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg" --- # In real markets, agents make bad choices. They are often… ![“In real markets, agents make bad choices. They are often ignorant, misinformed, and irrational. Yet, markets tend to punish agents for making bad choices, and they tend to learn from their mistakes. For instance, if you fail to pay your bills, your credit rating declines and you have a harder time…” quote by Jason Brennan](https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg) [Download](https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg) [Open image](https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg) > ““In real markets, agents make bad choices. They are often ignorant, misinformed, and irrational. Yet, markets tend to punish agents for making bad choices, and they tend to learn from their mistakes. For instance, if you fail to pay your bills, your credit rating declines and you have a harder time getting loans. If you fail to do research and buy an unreliable car, you suffer from repair bills. In contrast, when people in government make bad choices, the political process almost never punishes them. Studies show that voters are terrible at retrospective voting—they do not know whom to blame for bad government—and so politicians are not punished for making bad choices.”” [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Markets self‑correct through penalties, but political systems lack effective feedback, allowing bad decisions to persist. **In simple terms:** Markets punish mistakes; politics often does not. Key Takeaway Demand accountability mechanisms in governance. Themes accountability politics market discipline Mood critical analytical Type political economic When to use this quote - voting reforms - transparent audits - citizen oversight - policy reviews Key Concepts economics behavioral science public policy Questions to Reflect On - What structures could better punish political errors? - How can voters improve retrospective voting? A Different Perspective Political incentives may resist change despite evidence. ★ ★ ★ ★ ★ No ratings yet [Bad choices](https://sms4smile.com/quotes/about/bad-choices/) [Bad government](https://sms4smile.com/quotes/about/bad-government/) [Investing](https://sms4smile.com/quotes/about/investing/) [Making Bad Choices](https://sms4smile.com/quotes/about/making-bad-choices/) ## Related quotes > [“Don’t blame yourself for bad choices. Do attempt to make better ones. Most of our problems in handling money stem from unexamined patterns rather…](https://sms4smile.com/quotes/sarah-ban-breathnach/don-t-blame-yourself-for-bad-choices-do-attempt-to-make-better-ones/) [Sarah Ban Breathnach](https://sms4smile.com/quotes/author/sarah-ban-breathnach/) > [Knowledge has the power to help us avoid making bad choices that produce bad results.](https://sms4smile.com/quotes/zig-ziglar/knowledge-has-the-power-to-help-us-avoid-making-bad-choices-that/) [Zig Ziglar](https://sms4smile.com/quotes/author/zig-ziglar/) > [I believe that theres always something deeper behind people making bad choices..and things arent always as they seem.](https://sms4smile.com/quotes/anonymous/i-believe-that-theres-always-something-deeper-behind-people-making/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [I'm living life as best I can - but I'm not exempt from failure and making bad choices.](https://sms4smile.com/quotes/leann-rimes/i-m-living-life-as-best-i-can-but-i-m-not-exempt-from-failure-and/) [LeAnn Rimes](https://sms4smile.com/quotes/author/leann-rimes/) > [“You will never be able to end any battle if the people involved are unable to see their own hypocrisy, or how their insecurity…](https://sms4smile.com/quotes/shannon-l-alder/you-will-never-be-able-to-end-any-battle-if-the-people-involved-are/) [Shannon L. Alder](https://sms4smile.com/quotes/author/shannon-l-alder/) > [“Your biggest challenge isn’t that you’ve intentionally been making bad choices. Heck, that would be easy to fix. Your biggest challenge is that you’ve…](https://sms4smile.com/quotes/darren-hardy/your-biggest-challenge-isn-t-that-you-ve-intentionally-been-making/) [Darren Hardy](https://sms4smile.com/quotes/author/darren-hardy/) > [One of your greatest protections against making bad choices is to not put on any mask of anonymity.](https://sms4smile.com/quotes/quentin-l-cook/one-of-your-greatest-protections-against-making-bad-choices-is-to-not/) [Quentin L. Cook](https://sms4smile.com/quotes/author/quentin-l-cook/) > [“Don't go around saying y.o.l.o. You need to live life to the fullest not going around making bad choices make good choices. Have good…](https://sms4smile.com/quotes/jaylynn-cameron/don-t-go-around-saying-y-o-l-o-you-need-to-live-life-to-the-fullest/) Jaylynn Cameron > [“Sometimes we think because God created everything, that he is responsible for all the bad things that happen to us. But the reality is,…](https://sms4smile.com/quotes/john-michael-hileman/sometimes-we-think-because-god-created-everything-that-he-is/) [John Michael Hileman](https://sms4smile.com/quotes/author/john-michael-hileman/) > [“Life is about making bad choices or decisions and learning from them as your mistakes that you have made, because in order to stand…](https://sms4smile.com/quotes/fernando-el-nino/life-is-about-making-bad-choices-or-decisions-and-learning-from-them/) Fernando EL Nino > [Sin is not simply making bad choices or mistakes. Sin is having the desire in our hearts to do the will of the enemy…](https://sms4smile.com/quotes/r-c-sproul/sin-is-not-simply-making-bad-choices-or-mistakes-sin-is-having-the/) [R. C. Sproul](https://sms4smile.com/quotes/author/r-c-sproul/) > [No one is anything but a shade of grey. It's good people making bad choices.](https://sms4smile.com/quotes/sara-bareilles/no-one-is-anything-but-a-shade-of-grey-it-s-good-people-making-bad/) [Sara Bareilles](https://sms4smile.com/quotes/author/sara-bareilles/) > [“Boys’ aggressiveness is increasingly being treated as a medical problem, particularly in schools, a trend that has led to the diagnosing and medicating of…](https://sms4smile.com/quotes/lundy-bancroft/boys-aggressiveness-is-increasingly-being-treated-as-a-medical/) [Lundy Bancroft](https://sms4smile.com/quotes/author/lundy-bancroft/) > [“wen am good you will not accept, now don't blame me for my bad behaviors ...”](https://sms4smile.com/quotes/sakhiabbas/wen-am-good-you-will-not-accept-now-don-t-blame-me-for-my-bad/) sakhiabbas > [“Better to have you curse me for giving you too much freedom, than have you blame me for bad decisions that may or may…](https://sms4smile.com/quotes/tori-carrington/better-to-have-you-curse-me-for-giving-you-too-much-freedom-than-have/) Tori Carrington ## More by Jason Brennan > [“Adam Smith’s Wealth of Nations was in large part a critique of imperialism. We often associate opposition to imperialism with Marxism and the Left,…](https://sms4smile.com/quotes/jason-brennan/adam-smith-s-wealth-of-nations-was-in-large-part-a-critique-of/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [The problem with voting is that because your individual vote makes very little difference, you're voting with a mass of others, you have very…](https://sms4smile.com/quotes/jason-brennan/the-problem-with-voting-is-that-because-your-individual-vote-makes/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [The power to regulate the economy is the same thing as the power to distribute favors.](https://sms4smile.com/quotes/jason-brennan/the-power-to-regulate-the-economy-is-the-same-thing-as-the-power-to/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [It's often considered elitist to say that well maybe voters are uninformed and that they should know more before they cast their votes. It's…](https://sms4smile.com/quotes/jason-brennan/it-s-often-considered-elitist-to-say-that-well-maybe-voters-are/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [My main worry about referendums is that you are taking a very complicated political question that requires knowledge of a bunch of background facts…](https://sms4smile.com/quotes/jason-brennan/my-main-worry-about-referendums-is-that-you-are-taking-a-very/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [“The typical undergraduate microeconomics textbook describes cases where markets are unlikely to produce efficient outcomes. These textbooks often claim that, in principle, government intervention…](https://sms4smile.com/quotes/jason-brennan/the-typical-undergraduate-microeconomics-textbook-describes-cases/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [“In light of all this, imagine you are a congressperson. You hear many cries for help. These cries for help only come in the…](https://sms4smile.com/quotes/jason-brennan/in-light-of-all-this-imagine-you-are-a-congressperson-you-hear-many/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [I'm skeptical about even educating voters as a chance for being successful. You know, when we look at what people retain from high school…](https://sms4smile.com/quotes/jason-brennan/i-m-skeptical-about-even-educating-voters-as-a-chance-for-being/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [You tell me to get lost, but if I get lost, your gonna be the 1st one looking for me.](https://sms4smile.com/quotes/jason-brennan/you-tell-me-to-get-lost-but-if-i-get-lost-your-gonna-be-the-1st-one/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [For some reason when it comes to democracy, we seem to think that political knowledge doesn't make any kind of difference or we shouldn't…](https://sms4smile.com/quotes/jason-brennan/for-some-reason-when-it-comes-to-democracy-we-seem-to-think-that/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) > [When I'm crossing the street, I look both ways and I process the information rationally because if I make a mistake I get hurt,…](https://sms4smile.com/quotes/jason-brennan/when-i-m-crossing-the-street-i-look-both-ways-and-i-process-the/) [Jason Brennan](https://sms4smile.com/quotes/author/jason-brennan/) [Explore all 12 Jason Brennan quotes ](https://sms4smile.com/quotes/author/jason-brennan/) ## More Bad choices quotes > [I can't let fear kill my creative brain. Fear is the killer. Your bad choices come from fear. And I'm constantly combating fear. I'm…](https://sms4smile.com/quotes/jon-m-chu/i-can-t-let-fear-kill-my-creative-brain-fear-is-the-killer-your-bad/) [Jon M. Chu](https://sms4smile.com/quotes/author/jon-m-chu/) > [“What would you think if I told you that, yes, your bad choices and decisions have had a part in your ending up under…](https://sms4smile.com/quotes/andy-andrews/what-would-you-think-if-i-told-you-that-yes-your-bad-choices-and/) [Andy Andrews](https://sms4smile.com/quotes/author/andy-andrews/) > [ Loneliness is something we \[all people\] go through. We go through mourning and longing. We make some bad choices sometimes because we're desperate for… ](https://sms4smile.com/quotes/jennifer-lee/loneliness-is-something-we-all-people-go-through-we-go-through/) [Jennifer Lee](https://sms4smile.com/quotes/author/jennifer-lee/) > [“Do More. Be More. You were made for more! Take all the chances and leaps. Every single step of the journey is a maze…](https://sms4smile.com/quotes/chinonye-j-chidolue/do-more-be-more-you-were-made-for-more-take-all-the-chances-and-leaps/) [Chinonye J. Chidolue](https://sms4smile.com/quotes/author/chinonye-j-chidolue/) > [In Lullabies, I wanted to capture what I remembered of the drunken babbling of unfortunate twelve-year-olds: their illusions, their ludicrously bad choices, their lack…](https://sms4smile.com/quotes/heather-o-neill/in-lullabies-i-wanted-to-capture-what-i-remembered-of-the-drunken/) [Heather O'Neill](https://sms4smile.com/quotes/author/heather-o-neill/) > [ Britney and I wore matching denim outfits \[to the 2001 American Music Awards\]. Yeah, another bad choice. I’d probably pay good money to get… ](https://sms4smile.com/quotes/justin-timberlake/britney-and-i-wore-matching-denim-outfits-to-the-2001-american-music/) [Justin Timberlake](https://sms4smile.com/quotes/author/justin-timberlake/) > [Your life is like credit. If you make bad choices and decisions its gonna effect everything in your life as well as yourself.](https://sms4smile.com/quotes/anonymous/your-life-is-like-credit-if-you-make-bad-choices-and-decisions-its/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“I love painting. I love drawing. I’m never let down, even when the picture isn’t exactly what I want. I can keep working on…](https://sms4smile.com/quotes/kayla-cagan/i-love-painting-i-love-drawing-i-m-never-let-down-even-when-the/) Kayla Cagan > [Everyone makes mistakes in life, but that doesnt mean they have to pay for them the rest of their life sometimes good people make…](https://sms4smile.com/quotes/vvn/everyone-makes-mistakes-in-life-but-that-doesnt-mean-they-have-to-pay/) VVN > [Sometimes, good people make bad choices. It doesn't mean they're bad…it means they're human](https://sms4smile.com/quotes/anonymous/sometimes-good-people-make-bad-choices-it-doesn-t-mean-they-re-bad-it/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [For good-intentioned people making decisions, there's no such thing as a bad choice. So it doesn't matter what you choose. Choose something, then deliberately…](https://sms4smile.com/quotes/esther-hicks/for-good-intentioned-people-making-decisions-there-s-no-such-thing-as/) [Esther Hicks](https://sms4smile.com/quotes/author/esther-hicks/) > [Love is too strong and life is too short. You have to love with your heart and live with your faith; you have to…](https://sms4smile.com/quotes/abby-wainwright/love-is-too-strong-and-life-is-too-short-you-have-to-love-with-your/) [Abby Wainwright](https://sms4smile.com/quotes/author/abby-wainwright/) > [I am the result of the good choices I've made and the bad choices.](https://sms4smile.com/quotes/madonna-ciccone/i-am-the-result-of-the-good-choices-i-ve-made-and-the-bad-choices/) [Madonna Ciccone](https://sms4smile.com/quotes/author/madonna-ciccone/) > [“Sometimes, when I read, it's not just fiction while I'm between the pages. It’s real. My heart races when they kiss, and I get…](https://sms4smile.com/quotes/emma-hart/sometimes-when-i-read-it-s-not-just-fiction-while-i-m-between-the/) [Emma Hart](https://sms4smile.com/quotes/author/emma-hart/) > [I've lost a bunch of friends - some of them in jail, some of them made bad choices, some of them aren't where they…](https://sms4smile.com/quotes/trombone-shorty/i-ve-lost-a-bunch-of-friends-some-of-them-in-jail-some-of-them-made/) [Trombone Shorty](https://sms4smile.com/quotes/author/trombone-shorty/) [Browse all 202 Bad choices quotes ](https://sms4smile.com/quotes/about/bad-choices/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“In real markets, agents make bad choices. They are often ignorant, misinformed, and irrational. Yet, markets tend to punish agents for making bad choices, and they tend to learn from their mistakes. For instance, if you fail to pay your bills, your credit rating declines and you have a harder time getting loans. If you fail to do research and buy an unreliable car, you suffer from repair bills. In contrast, when people in government make bad choices, the political process almost never punishes them. Studies show that voters are terrible at retrospective voting—they do not know whom to blame for bad government—and so politicians are not punished for making bad choices.”", "creator": { "@type": "Person", "name": "Jason Brennan" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/jason-brennan/in-real-markets-agents-make-bad-choices-they-are-often-ignorant/", "about": { "@type": "Thing", "name": "Bad choices" }, "@id": "https://sms4smile.com/quotes/jason-brennan/in-real-markets-agents-make-bad-choices-they-are-often-ignorant/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg", "contentUrl": "https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg", "url": "https://sms4smile.com/quotes/i/498/jason-brennan-32513_bad-choices_in-real-markets-agents-make-bad-choices_2331146.jpg", "width": 1080, "height": 1080, "caption": "“In real markets, agents make bad choices. They are often ignorant, misinformed, and irrational. Yet, markets…” — Jason Brennan", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Jason Brennan", "item": "https://sms4smile.com/quotes/author/jason-brennan/" }, { "@type": "ListItem", "position": 4, "name": "“In real markets, agents make bad...", "item": "https://sms4smile.com/quotes/jason-brennan/in-real-markets-agents-make-bad-choices-they-are-often-ignorant/" } ], "@id": "https://sms4smile.com/quotes/jason-brennan/in-real-markets-agents-make-bad-choices-they-are-often-ignorant/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```