RG

IN CONTEXT

FOCUS

Decision making

KEY THINKER

Adam Smith (1723–90)

BEFORE

c.350 BCE Greek philosopher Aristotle claims that innate self-interest is the primary economic motivator.

1750s French economist François Quesnay claims that self-interest is the motivation behind all economic activity.

AFTER

1957 US economist Herbert Simon argues that people are not able to acquire and digest all available information about every topic, so their rationality is “bounded” (limited).

1992 US economist Gary Becker receives the Nobel Prize for his work on rational choice in the fields of discrimination, crime, and human capital.

Most economic models are underpinned by the ...

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