Define: Rational Behaviour

Business, Legal & Accounting Glossary

Definition: Rational Behaviour


Quick Summary of Rational Behaviour


A decision-making process that is based on making choices that result in the most optimal level of benefit or utility for the individual. Most conventional economic theories are created and used under the assumption that all individuals taking part in an action/activity are behaving rationally.



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Rational Behaviour. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/rational-behaviour/.
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Rational Behaviour. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/rational-behaviour/ (accessed: April 05, 2020).
American Psychological Association (APA):
Rational Behaviour. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/rational-behaviour/

Definition Sources


Definitions for Rational Behaviour are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 25th March, 2020