Understanding Homo Economicus: The Idealized Model of Rational Decision-Making in Economics

The concept of Homo Economicus, or Economic Man, serves as a fundamental model in economic theory, representing individuals who make rational decisions aimed at maximizing utility. This report will analyze the implications and limitations of the Homo Economicus model within the context of economic behavior, particularly emphasizing its role in shaping classical economic theories and policy-making. The Homo Economicus model posits that individu