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Just an addition: rationality in economics assumes a logical[0] ordering of preferences and behavior which maximizes value within this ordering. [0] Think tran
by greggyb 11y ago
Just an addition: rationality in economics assumes a logical[0] ordering of preferences and behavior which maximizes value within this ordering.
[0] Think transitivity: I prefer A to B and I prefer B to C; I must not prefer C to A. There's more nuance, but this is enough for the intuition. Without this ordering, maximizing value makes no sense.