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

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Rational Choice Theory: Why We Always Act in Our Own 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, August 17). Rational Choice Theory: Why We Always Act in Our Own Interest. Encyclopedia of psychology. https://encyclopedia.arabpsychology.com/rational-economic-man/
looti, Mohammed. “Rational Choice Theory: Why We Always Act in Our Own Interest.” Encyclopedia of psychology, 17 August 2026, https://encyclopedia.arabpsychology.com/rational-economic-man/.
looti, Mohammed. “Rational Choice Theory: Why We Always Act in Our Own Interest.” Encyclopedia of psychology. August 17, 2026. https://encyclopedia.arabpsychology.com/rational-economic-man/.