Rationality is a rather complicated concept from the standpoint of scientific analysis. However, considering it from the point of view of simple consciousness, one might think that it is very light.
Definition
Rationality is a certain algorithm of actions, in the process of execution of which the subject will not choose one alternative if he is available at the same time another, which he recognized as preferred. According to Hayek's theory, rational behavior should be aimed at obtaining a specific result. It should be noted that rationality is the normal behavior of people that can be investigated in terms of determining the norm of reality in the economy.
The main forms of rational behavior
Thus, in economic theory, the following main types of rational behavior are distinguished: following certain personal interests and directly rationality.
Let's consider these forms in more detail. Thus, economic rationality is considered in the form of three main forms:
Maximization, which involves choosing the best option from all existing alternatives. This principle is the basis of the neoclassical theory, in which the business entity is represented by certain functions, and consumers by the distribution of resources between certain economic spheres. Moreover, optimization should be traced at all stages of the reproduction of rationality.
Limited rationality is a premise accepted in economic theory in the form of transaction costs. This form implies the desire of economic entities to act rationally, but in practice it has this ability to a limited extent.
Organic rationality has found its application in the theories of Nelson, Winter, and Alchian when tracing the evolutionary process in the framework of one or several enterprises.
The last two forms of rationality harmoniously complement each other. However, they are used to achieve various goals. The study of their institutions is necessary to implement a method of reducing transaction costs by the followers of neoclassical theory, but representatives of the Austrian school are widely used to determine the viability of their institutions.
