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Traditional economic models often assume that consumers possess perfect information and make decisions that maximize utility. [Behavioral economists, by contrast, argue that cognitive biases frequently lead individuals to choose options that are objectively less beneficial.] This discrepancy has prompted a reevaluation of how financial regulations are designed.
Which choice best describes the function of the second sentence as a whole?
- It introduces a perspective that differs from the one described in the opening sentence.
- It provides a definitive list of the most common cognitive biases in consumer behavior.
- It suggests that financial regulations are unnecessary because consumers are irrational.
- It confirms that traditional models are the most accurate way to predict market trends.
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