Rotten kid theorem

The Rotten kid theorem is an idea that says that even when kids are naughty and do bad things, their parents usually still love them! This idea was invented by a famous economist named James M. Buchanan.

Imagine there are three kids - two nice kids and one rotten kid. The two nice kids always do what their parents say, but the rotten kid gets in trouble a lot and plays tricks on people and does naughty things. Even though the rotten kid behaves badly, their parents still love them just as much as they love the nice kids!

It might not make sense at first why this matters, but the Rotten kid theorem can be used to explain a lot of economic behavior. It shows that people don't always act in their best interests, but it also shows that even when people make bad decisions, there can be a deeper reason behind it. It also shows that even when people don't make the most rational choices, they are still valuable members of society.