In economic terms, what is meant by 'self-interest'?

In economic terms, 'self-interest' refers to the idea that individuals make decisions based on what will provide them with the greatest personal benefit or advantage. This principle is foundational to many economic theories, particularly those concerning market behavior and competition. When individuals act out of self-interest, they pursue their own goals, which can lead to increased efficiency and innovation within the economy.

This concept does not imply harmful behavior; rather, it suggests that when people are free to pursue their own interests, they can contribute to overall economic growth as a byproduct of their own efforts. For example, a business owner may strive to improve their products and services to attract more customers. In doing so, they also create jobs and provide value to the community, demonstrating how self-interest can align with broader economic benefits.

The other concepts mentioned imply considerations beyond personal benefit, such as societal benefits or collective actions, which are important, but do not capture the essence of the self-interest principle as it is understood in economic theory.