Editing Rational agent (section)

==Economics==
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In reference to economics, rational agent refers to hypothetical consumers and how they make decisions in a [[free market]]. This concept is one of the assumptions made in [[neoclassical economics|neoclassical economic theory]]. The concept of economic [[rationality]] arises from a tradition of [[marginal analysis]] used in neoclassical economics. The idea of a rational agent is important to the philosophy of [[utilitarianism]], as detailed by philosopher [[Jeremy Bentham]]'s theory of the [[felicific calculus]], also known as the hedonistic calculus.

The action a rational agent takes depends on:
* the preferences of the agent
* the agent's information of its environment, which may come from past experiences
* the actions, duties and obligations available to the agent
* the estimated or actual benefits and the chances of success of the actions.

In [[game theory]] and classical [[economics]], it is often assumed that the [[actor]]s, people, and firms are rational.  However, the extent to which people and firms behave rationally is subject to debate.  Economists often assume the models of [[rational choice theory]] and [[bounded rationality]] to formalize and predict the behavior of individuals and firms.  Rational agents sometimes behave in manners that are counter-intuitive to many people, as in the [[traveler's dilemma]].

=== Alternate theories ===
[[Neuroeconomics]] is a concept that uses [[neuroscience]], social [[psychology]] and other fields of science to better understand how people make decisions.  Unlike rational agent theory, [[neuroeconomics]] does not attempt to predict large-scale human behavior but rather how individuals make decisions in case-by-case scenarios.