Difference between revisions of "Rational behavior"
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| − | Rational Behavior is | + | Rational Behavior is behavior that maximizes utility by concurrently maximizing benefits and minimizing costs. The rationality in this case is morally neutral: it may prevent a person from anti-social behavior by reminding him of the attendant costs (i.e. punishment), but may encourage "immoral" acts if an individual views them as the most efficient choice in his circumstances. Rational behavior is further complicated when utility interdependence is taken into consideration - i.e., when the individual seeks not only utility for himself, but also utility for others, such as his loved ones. |
[[Category:Economics]] | [[Category:Economics]] | ||
Revision as of 00:38, March 29, 2007
Rational Behavior is behavior that maximizes utility by concurrently maximizing benefits and minimizing costs. The rationality in this case is morally neutral: it may prevent a person from anti-social behavior by reminding him of the attendant costs (i.e. punishment), but may encourage "immoral" acts if an individual views them as the most efficient choice in his circumstances. Rational behavior is further complicated when utility interdependence is taken into consideration - i.e., when the individual seeks not only utility for himself, but also utility for others, such as his loved ones.