My definition of rational expectation theory is people absolute best guess at what will happen in the future while using the things that have happened in the past, that they have learned over a period of time. This means that people do not make errors while predicting the future and they use ALL of the information that they have observed and learned to make a most intelligent decision possible.
Do people have rational exceptions? – What have people not learned from their mistakes.
I believe that as a whole, rational expectation does not exist. People are very irrational at times and don’t learn from the past most of the time due to things “feeling good”. We as irrational beings mostly rely on feelings for most of our decisions. If humans were a robots and actually had learned from the past to make a future decisions (and not did what felt good,) then we would be able to accurately make rational expectations.