Homo Economicus

(redirected from Rational Economic Actors)
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Homo Economicus

A person that desires to maximize his/her needs or desires. Homo economicus is used most of the time to refer to the rational economic actor, who desires wealth, does not desire to work if it can be avoided, and is able to find ways achieve those ends. This assumption is accepted by many economists, especially those who follow rational choice theory, but it remains controversial. The concept of homo economicus was developed by utilitarian thinkers, and contrasts with the constructs of behavioral economics.
References in periodicals archive ?
Econs are the rational economic actors who can easily figure out which deal is better, are never misled by the order in which alternatives are presented, always ignore sunk costs, etc.
Corporations are generally taken to be rational economic actors and laws and regulations in relation to corporations are often understood in terms of costs and incentives.
The key factor to explain variation in the timing of the democratic shift is education, the point in time in which parents, as rational economic actors, begin to make the choice to have fewer children at the expense of better educating those they do have.
He models how both criminals and victims operate as rational economic actors in their decision-making.
In the author's view, large landlords, small sheep farmers, and even laborers behaved as rational economic actors.