The Limits of the Homo Oeconomicus Phenomenon in the Face of Consumer Behavioral Reality

Abstract

This paper analyzes the limitations of the Homo oeconomicus model to the behavioral reality of consumers. Traditional economic theory portrays individuals as perfectly rational agents who maximize utility under conditions of complete information. However, this assumption does not reflect actual human behavior. The study examines the origins of this model in the works of Adam Smith and John Stuart Mill, as well as its critique through Herbert Simon’s concept of bounded rationality. It also integrates insights from behavioral economics, particularly the contributions of Daniel Kahneman and Amos Tversky, which highlight the role of cognitive biases and emotions in decision-making. The analysis shows that real consumers are influenced by psychological, social, and economic factors, leading to systematic deviations from rational behavior. Although the Homo oeconomicus model remains analytically useful, a more realistic understanding of economic behavior requires incorporating behavioral perspectives into the analysis. CZU: 330.82:366.1; JEL: B12, D01, D11, D91