Rationality - Conditions for rationality

6 important questions on Rationality - Conditions for rationality

Rational set of preferences:

- transitivity
- completeness
- continuity

Hierarchical incommensurability/discountinuity

one is not prepared to give up A for any quantity of B economists: one value is incomparably higher than another only means that it is much more valuable than the other

Cardinal utility function

comparisons of utility differences are not arbitrary
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The concept of rationality 3 functions:

- analytical function
- descriptive --> people choose in a rational way
- prescriptive --> rationality is a normative notion

Objections by Hausman of the revealed preference theory:

1. It does not really improve the empirical verification of preferences.
2. Revealed preferences may be misinterpreted if strategic considerations are present.
3. Internal consistency of choice cannot itself be an adequate condition of rationality.

What are the main characteristics of 'Leadership Vision' (content)

  • Future-orientated
  • embodies particular ideals and excellence
  • organisation, market, and culture are key
  • positive staff identities

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