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