THE REPRESENTATIVENESS OF HOMO OECONOMICUS AND ITS RATIONALITY

Abstract

The homo oeconomicus model is an essential concept of the neoclassical analysis. It defines the agent capable of rational choices in pursuing the maximization of his own utility functions. Over time, the notion remained at the basis of many debates, related mainly to its relevance. However, the concept remained, until now, a fundamental component of mainstream analysis. This article aims to present a brief overview of the arguments that support the use of this model, but also its limitations and inconsistencies. Our main goal is to analyze if homo oeconomicus can be or not considered an ideal representation of the economic agent. Further, the analysis emphasize on the attribute of rationality, which is one of the most disputed feature in the literature.

Keywords

• homo oeconomicus; mainstream economics; economic behaviour; rationality