RATIONALITY AND THE LINK WITH PERMANENT INCOME THEORY

摘要

Rational choice and consumer behaviour mean how consumers balance their selection of goods and services to achieve their object of interest and satisfy their needs. Submitted paper compares theories of consumer's rationality and deals with the rationality and permanent income theory in the Visegrad Countries. Data were selected from the Eurostat Database that collects information from EU-SILC. Another aim of the paper is to present the development of mean and median income in the Czech Republic. Examining rationality from the view of income is very important, because the level of income affects the level of affordable goods and services.