Archive for November 12th, 2019

November 12, 2019

Homo Economicus


The termĀ homo economicus, or economic man, is the sometimes satirical portrayal of humans as agents who are consistently rational, narrowly self-interested, and who pursue their subjectively-defined ends optimally.

In game theory, homo economicus is often modeled through the assumption of perfect rationality. It assumes that agents always act in a way that maximize utility as a consumer and profit as a producer, and are capable of arbitrarily complex deductions towards that end. They will always be capable of thinking through all possible outcomes and choosing that course of action which will result in the best possible result.

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