- [[rational choice theories]], [[rational actors are not always selfish]] # Idea Given an objective (a goal or purpose), agents maximize or [[optimization|optimize]] that objective. Examples: A firm's goal is to make money, so it will optimize its workflows to optimize total revenue or profits. A person who cares about happiness will maximize utility. If revenue = price * quantity, and `quantity = q`, `price = 50 - q`, what `q` should we choose to optimize/maximize revenue? ```python revenue = q * (50 - q) revenue = 50 * q - q ** 2 # best q is 25 ``` Where else do we often optimize: investments, purchases, education level, vote # References - https://www.coursera.org/learn/model-thinking/lecture/C4Ekm/rational-actor-models