RATIONAL BEHAVIOR: The notion that people make decisions based on the desire to obtain the greatest amount of satisfaction. Rational behavior essential means that people prefer more to less. The presumption of rational behavior underlies most economic analyses, especially those applied to consumer demand theory. See also | economic thinking | economic analysis | consumer demand theory | utility | utility maximization | economics | scarcity | satisfaction | second rule of subjectivity | normative economics | assumption | unlimited wants and needs |
