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What is Enlightened Self Interest? 

Enlightened Self-Interest is the idea that individuals have regard for their self interest. Individuals must also regard the interests of others to promote their own best interest. 

Enlightened Self Interest is a concept put forward by the famed economist Adam Smith. He believed a nation needed to have enlightened self interest to bring about universal prosperity.

Example of Enlightened Self Interest

A butcher promotes his own self interest by selling meat. S/he sells quality meat that meets the needs of customers. By being aware of and meeting the needs of customers, the butcher promotes his own interests. 

Related Topics

  • Budget Constraint
  • Radner Equilibrium
  • Opportunity Cost
  • Opportunity Set
  • Marginal Analysis
  • Utility
  • Self Interest
  • Cost-Benefit Analysis
  • Enlightened Self-Interest
  • Fisher’s Separation Theorem
  • Ratchet Effect
  • Total Utility (Economics)
  • Efficiency Principle
  • Expected Utility
  • Subjective Theory of Value
  • Positional Goods
  • Utilitarianism
  • Indifference Curve
  • Time Preference Theory of Interest
  • Incentives
  • Marginal Benefit
  • Marginal utility
  • Diminishing Marginal Utility
  • Sunk Costs
  • Production Possibilities Frontier
  • Law of Diminishing Returns
  • Economic Efficiency
  • Efficiency Theory
  • Productive Efficiency
  • Capacity Utilization Rate
  • Allocative Efficiency
  • Pareto Efficient
  • Comparative Advantage
  • Criticisms of the Economic Approach
  • Behavioral Economics
  • Normative Economics
  • Positive Economics
  • Invisible Hand
  • Sunk cost