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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

October 11th 2024

affiliation

affiliation

n. a social relationship in which a person joins or seeks out one or more other individuals, usually on the basis of liking or a personal attachment rather than perceived material benefits. Some propose that the seeking of cooperative, friendly association with others who resemble or like one or whom one likes is a fundamental human desire, referring to it variously as the affiliation motivation, affiliative drive, affiliative need, or need for affiliation. See also belonging. —affiliative adj.