Methodological individualism

Methodological individualism is the requirement that causal accounts of social phenomena explain how they result from the motivations and actions of individual agents, at least in principle.[1]

In economics

In neoclassical economics, people's behavior is explained in terms of rational choices, as constrained by prices and incomes. The neoclassical economist accepts individuals' preferences as given. Becker and Stigler provide a forceful statement of this view:[2]

On the traditional view, an explanation of economic phenomena that reaches a difference in tastes between people or times is the terminus of the argument: the problem is abandoned at this point to whoever studies and explains tastes (psychologists? anthropologists? phrenologists? sociobiologists?). On our preferred interpretation, one never reaches this impasse: the economist continues to search for differences in prices or incomes to explain any differences or changes in behavior.