Homo Economicus (redirected from Consumer rationality)

Homo Economicus

The rational human being that many economists use when deriving, explaining, and verifying their theories and models.

Notes:

The basis for a majority of economic models is the assumption that all human beings are rational and will always attempt to maximize their utility - whether it be from monetary or non-monetary gains.

Many people disagree over the assumption underlying the homo economicus, so it continues to be a point of contention.

See also: Classical Economics, Dismal Science, Economics, Keynesian Economics, Laissez Faire