The Hypothetical Characteristics of Rational Man Hypothesis

(1) integrity. Rational people know their own preferences, have a clear understanding of their own goals, and can make independent choices for any changes in economic life.

(2) Rational choice. Its economic behavior is conscious and rational, and there is no empirical and arbitrary decision.

(3) the principle of self-interest. Consumers pursue the maximization of satisfaction, owners of production factors pursue the maximization of income, producers pursue the maximization of profit, and the government pursues the optimization of target decision-making.

(4) transitivity. Various production resources can flow freely between departments and regions without any cost. The reason for making such an assumption is nothing more than extracting the main basic factors from many complex factors that affect people's economic behavior, taking this as the premise, putting forward important conclusions, and making predictions on people's economic behavior accordingly, providing theoretical basis for action guidance or decision-making.