The Rational Economic Agent

The Rational Economic Agent is a concept in economics that describes an individual who makes decisions aimed at maximizing their benefits or utility. This agent carefully weighs the costs and benefits of different choices, acting logically and coherently based on available information. It assumes that people have clear preferences and act in their best interest to achieve desired outcomes, such as maximizing happiness or financial gain. While this model simplifies human behavior, it serves as a useful framework for understanding economic decisions and market dynamics.