Fred Foldvary: >Economic rationality consists of just two things: 1. Economizing: minimize costs and maximize benefits. 2. Consistency: if A is preferred to B and B to C, then A is preferred to C. This transitivity applies only at a moment in time.
Economic rationality does not judge ends. It is about consistency of ends and about the means to ends. Economic rationality also does not judge beliefs. Hence, one may be out of touch with reality yet be economically rational.< Which is different from saying that all action is rational, because all action is action, and every action is rational if you just understand that the costs and benefits are known only to the actor (if to him) and exist only insofar as they are revealed through actions. Michael
