rational-economic man

a construct introduced in the work of Scottish economist Adam Smith (1723–1790): The rational-economic man makes decisions based on the rational analysis of potential and desired outcomes and acts in his (or her) own rational self-interest. This assumption lies behind the classical economic theories of capitalism and the classical political philosophies of liberalism. Its influence can also be seen in psychology, most theories and models of which assume a human being capable of reason and highly motivated to act out of self-interest. Recent research suggests that people are often ruled more by emotional and cognitive biases than by rational self-interest when making economic and other decisions. See eudemonism; hedonism. See also behavioral economics; bounded rationality.

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Psychology term of the day

May 8th 2024

integrative agnosia

a form of visual agnosia in which individuals are able to perceive the elements of an object but find it difficult to combine them into a perceptual whole. Typically, symptoms of both apperceptive and associative agnosia are present. Individuals affected by this kind of agnosia can usually draw an object accurately but only through a laborious process.