Introduction from my main blog about economics.
What are economic agents? economic agents are actors who intervene the economy under certain rules determined by the economic system and economic institutions. They make decisions trying to resolve an optimization or choice problem. In this process, they mold the economy; for example, they decide the distribution of goods and services, taxes, laws, tariffs, etc.
Another definition of economic agents, also known as economic actors, considers them as decisions makers who are able to recognize different economic factors, incentives, and motivations of the different economic groups.
The concept of “economic agents” was created by economist to simplify and explain economic processes. As a concept, it was first used in classical and neoclassical models where economists construct a simplified framework representing the economic process by a set of variables and a set of logical relationship between them.