ABSTRACT

The economic model of individual behavior is predicated on the assumption that people choose rationally among their opportunities to achieve the maximum satisfaction according to their individual preferences. In accordance with this model, if a person's opportunities or preferences change, the opportunity the person chooses to satisfy his or her preferences will also change. Thus the economic model suggests at least two methods by which society can promote desired individual behavior: (1) shaping the individual's opportunities to give incentive for desired behavior, or (2) shaping the individual's preferences to increase his or her taste for desired behavior.