I think you misunderstood my point. I meant that the behavior of these people may well have been rational, or at least not remarkably irrational, by the standard economic definition of the term, i.e. in the sense of advancing one’s own self-interest.
Even if you’re responsible for a failure with large total costs, this may still advance your self-interest if the benefit you derive from it is larger than the share of the costs you have to bear yourself (plus of course the future reputational and other indirect costs, of course). It seems to me this may have been the case in both examples from the original post, so it’s unjustified to parade them as obvious examples of irrational behavior.
I think you misunderstood my point. I meant that the behavior of these people may well have been rational, or at least not remarkably irrational, by the standard economic definition of the term, i.e. in the sense of advancing one’s own self-interest.
Even if you’re responsible for a failure with large total costs, this may still advance your self-interest if the benefit you derive from it is larger than the share of the costs you have to bear yourself (plus of course the future reputational and other indirect costs, of course). It seems to me this may have been the case in both examples from the original post, so it’s unjustified to parade them as obvious examples of irrational behavior.