The Homo Economicus Model

Economics, management and organizational theories assume, at least implicitly, a certain model of the human being, and this has significant consequences for the subsequent development of such theories and the practice of management. So far the dominant model has been, and continues to be, that of the homo economicus, although with certain variants. Homo economicus, in simple terms, is an individual with interests and preferences and a rational capacity oriented to maximizing those preferences, which are usually considered as self-regarding.This model has its immediate source in John Stuart Mill, with antecedents in certain nineteenth-century economists, ultimately traceable to Adam Smith, who had a broader view of the human being. Originally, homo economicus was conceived of not as an accurate description of human nature but as a model of economic behavior; however, in time, it became a crucial element of the neoclassical scheme of price equilibrium, and even the “only way” of understanding economic and organizational behavior.In recent decades, the homo economicus model has been the object of severe criticism from many sides, since it is highly reductionist and manifests important shortcomings as a concept of the human being.