Meaning of ECONOMIC MAN

Meaning of ECONOMIC MAN:

At the heart of economics is the assumption that people seek to maximise their returns (or satisfaction or utility). If we can buy an identical product in two outlets at different prices, we will buy the cheaper because it satisfies us every bit as well as the alternative and leaves us change to spend on something else. The problem is that many people do not seek to maximise in the obvious sense. For example, they will pay a premium to have the name of a famous designer emblazoned on their clothes or they will work voluntarily for charitable organisations.