# Metadata Source URL:: https://en.wikipedia.org/wiki/Rational_choice_theory Topics:: #humans, #game-theory --- # Rational choice theory - Wikipedia ## Highlights > [!quote]+ Updated on 141022_185315 > > Rational choice theory refers to a set of guidelines that help understand economic and social behaviour.[1] The theory originated in the eighteenth century and can be traced back to political economist and philosopher, Adam Smith.[2] The theory postulates that an individual will perform a cost-benefit analysis to determine whether an option is right for them.[3] It also suggests that an individual's self-driven rational actions will help better the overall economy. Rational choice theory looks at three concepts: rational actors, self interest and the invisible hand.