Rational: Difference between revisions
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Classical economics assumes that all market participants are profit-maximising and risk averse. | Classical economics assumes that all market participants are profit-maximising and risk averse. | ||
This combination of preferences is known as 'rational' in the efficient market hypothesis. | This combination of preferences is known as 'rational' in classical economic models such as the efficient market hypothesis. | ||
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*[[Homo economicus]] | *[[Homo economicus]] | ||
* [[Irrational]] | * [[Irrational]] | ||
*[[Model]] | |||
*[[Profit maximisation]] | *[[Profit maximisation]] | ||
*[[Risk]] | *[[Risk]] | ||
Latest revision as of 12:30, 8 November 2025
Economics.
Classical economics assumes that all market participants are profit-maximising and risk averse.
This combination of preferences is known as 'rational' in classical economic models such as the efficient market hypothesis.
