Source: EconLog
by Jon Murphy
“Methodological individualism is the idea that the dynamics of a group can best be analyzed by looking at the actions of the individuals that make up the group. Methodological individualism does not deny the existence of groups — of course groups exist. Indeed, there are times when it makes sense to refer to the group as something that accomplished a goal given the inherent complexities of life. For example, we might say ‘the firm produced the pencil.’ Yes, many individuals toiling away at various stages worked to make a pencil, but the firm is the framework, or the coordinating mechanism, that brought the pencil into existence. Applying methodological individualism means that individual behavior is the focus of our analysis. The constitution of the group emerges out of the behavior of the individuals who make up the group.” (08/22/25)
https://www.econlib.org/they-not-it-understanding-group-behavior