If I had to choose a single piece of evidence off of which to argue that the rationality assumption of neoclassical economics is totally, irretrievably incorrect...
Since this is framed as a hypothetical, its not clear exactly what your thoughts are on the subject, but I always encourage people to ask whether a model aids our thinking, or hinders it, rather then whether it is correct or incorrect.
The answer, in this case, is clearly both. It may be better to have an overapplied model than no model at all, but if you’ve got a model you’re clearly overapplying, improvement is a very low-hanging fruit.
Since this is framed as a hypothetical, its not clear exactly what your thoughts are on the subject, but I always encourage people to ask whether a model aids our thinking, or hinders it, rather then whether it is correct or incorrect.
The answer, in this case, is clearly both. It may be better to have an overapplied model than no model at all, but if you’ve got a model you’re clearly overapplying, improvement is a very low-hanging fruit.