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A comment on The Shock of Sweden's Housing Market Is Hitting the Country's Currency. Parent comment

Re:The Shock of Sweden's Housing Market Is Hitting the Count... by bluGill on Wednesday November 15, 2017 @01:10PM (#15706091)
Generally rational economics assumes someone who is rationally trying to optimizes for other factors.

You are correct that it is fully rational behavior for people. However that is not the definition used in economics. (sort of like physics tends to assume no friction where possible)

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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by sjy on Wednesday November 15, 2017 @03:24PM (#15707408)
No such assumptions are made in the axioms of VNM-rationality[1] or any other model of rationality of which I am aware. If it is not rational to live near people you like it is difficult to see why it would be pay more for a house with any other luxury.

[1]: https://en.wikipedia.org/wiki/Von_Neumann–Morgenstern_utilit...

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