What are rational actors?

A rational actor is someone who makes choices based on what they think will make them happiest or most successful.

Imagine you're picking your favorite snack from a bag full of different treats. You don’t just grab the first one you see, you think about which one tastes best, which one you’ve had enough of, and maybe even how much it costs. That's like being a rational actor, you make decisions by thinking about what will give you the best result.

Think of a rational actor as someone who always picks the best option in front of them. Like when you're choosing which toy to play with first, you might pick the one that looks most fun, or the one you haven’t played with yet. You’re not just picking randomly; you're making a choice based on what feels best to you.

Sometimes, rational actors also think about what happens next. If you know your favorite toy will break if you play too roughly, you might pick another one instead, even if it’s not as fun at first. That's thinking ahead, and that’s part of being a smart, rational actor!