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Homo Economicus

Definition 1

The term homo economicus, or ‘economic man’, denotes a view of humans in the social sciences, particularly economics, as self-interested agents who seek optimal, utility-maximizing outcomes. Behavioral economists and most psychologists, sociologists, and anthropologists are critical of the concept. People are not always self-interested (see social preferences), nor are they mainly concerned about maximizing benefits and minimizing costs. We may make decisions under uncertainty with insufficient knowledge, feedback, and processing capability (bounded rationality); we sometimes lack self-control; and our preferences change, often in response to changes in decision contexts.

Source: Behavioral Economics

Definition 2

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