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Rational Choice Theory: Why We Act in Our Own Best Interest

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Rational Choice Theory: Why We Act in Our Own Best Interest

A construct of Adam Smith, an 18th century economist. The rational-economic man makes decisions based on rational analysis of desired outcomes and acts in his own rational self-interest.

RATIONAL-ECONOMIC MAN: “A philosophy that states that most rational men will act out of what is best for their own self interest is characterized by the Rational-economic man model.”

Cite This Article

looti, M. (2026, June 20). Rational Choice Theory: Why We Act in Our Own Best Interest. Encyclopedia of psychology. https://encyclopedia.arabpsychology.com/rational-economic-man/
looti, Mohammed. “Rational Choice Theory: Why We Act in Our Own Best Interest.” Encyclopedia of psychology, 20 June 2026, https://encyclopedia.arabpsychology.com/rational-economic-man/.
looti, Mohammed. “Rational Choice Theory: Why We Act in Our Own Best Interest.” Encyclopedia of psychology. June 20, 2026. https://encyclopedia.arabpsychology.com/rational-economic-man/.