What does it mean when economists refer to "rational" behavior?

When economists refer to "rational" behavior, it specifically means that individuals systematically attempt to achieve their objectives based on their preferences and the information available to them. This concept is rooted in the idea that people make decisions aimed at maximizing their utility or satisfaction, given their resource constraints. Rational behavior does not imply that individuals always make the 'right' or 'best' decisions in a practical sense; rather, it indicates a consistent approach where choices are made logically to fulfill personal goals based on the circumstances and information at hand.

This definition aligns with the foundational principles of economic theory, which assume that individuals weigh the costs and benefits of their actions to make informed choices. In this context, economic models often assume rational behavior to predict outcomes in various scenarios, including market interactions and consumer choices.