Homo economicus profit perfect information calculations economic cycles postulate or analysis economics proven mathematical economics modeling prove
The fundamental postulate of mathematical economics is that of the rational individual actor – Homo economicus (lit. 'economic man'). In this model, each individual aims solely to accumulate as much profit as possible, and always makes optimal choices using perfect information. This atomistic view of economics allows it to relatively easily mathematize its thinking, because individual calculations are transposed into mathematical calculations. Such mathematical modeling allows one to probe economic mechanisms which would be very difficult to discover by a "literary" analysis. For example, explanations of economic cycles are not trivial. Without mathematical modeling, it is hard to go beyond simple statistical observations or unproven speculation.
