behavioral assumption

{{short description|Assumption in economics that humans will attempt to maximize their utilities}}

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In behavioral economics, the behavioral assumption is that, under their resource constraints, humans are rational actors – they will attempt to maximize their utilities, thereby generating the greatest profit and outcomes.{{Cite web|url=https://www.thoughtco.com/basic-behavioral-assumptions-of-economics-1147609|title=What Are the Underlying Behavioral Assumptions of Economics?|last=Moffatt|first=Mike|date=December 28, 2018|website=ThoughtCo|language=en|access-date=2019-07-20}}

The two most important characteristics of the human under the behavioral assumption are rationality and self-interest.{{Citation needed|date=August 2024}}

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Category:Finance theories

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