Higher reduction potential of an electrode in an electrochemical cell indicates its ability to gain electrons and undergo reduction. The reduction potential is a measure of the tendency of a species to be reduced. According to the standard electrode potentials, each half-cell in an electrochemical cell has its own reduction potential.

Now, let's understand why the electrode with a higher reduction potential acts as the cathode in the electrochemical cell.

1. Electrochemical Cell Overview:
An electrochemical cell consists of two half-cells, an anode, and a cathode, connected by a salt bridge or an electrolyte. The anode is where oxidation occurs, while the cathode is where reduction occurs. The flow of electrons from the anode to the cathode generates an electric current.

2. Reduction and Oxidation:
Reduction is the process of gaining electrons, while oxidation is the process of losing electrons. In an electrochemical cell, reduction takes place at the cathode, and oxidation takes place at the anode.

3. Higher Reduction Potential:
The reduction potential of an electrode is a measure of its ability to attract electrons and undergo reduction. The electrode with a higher reduction potential has a greater tendency to gain electrons and be reduced.

4. Cathode:
In an electrochemical cell, the electrode with a higher reduction potential acts as the cathode. This is because it has a greater affinity for electrons and is more likely to undergo reduction. The cathode is where reduction occurs, and electrons are gained.

5. Anode:
Conversely, the electrode with a lower reduction potential acts as the anode. It has a lower affinity for electrons and is more likely to undergo oxidation. The anode is where oxidation occurs, and electrons are lost.

In conclusion, the electrode with a higher reduction potential acts as the cathode in an electrochemical cell because it has a greater tendency to gain electrons and undergo reduction. The cathode is where reduction occurs, while the anode is where oxidation occurs. This arrangement allows for the flow of electrons from the anode to the cathode, generating an electric current.