The Compatibility of Economic Rationality and General Rationality: Integrating Constraints on Beliefs and Preferences

Phoebe Koundouri (), Nikitas Pittis () and Panagiotis Samartzis
Additional contact information
Nikitas Pittis: University of Piraeus, Greece

No 2502, DEOS Working Papers from Athens University of Economics and Business

Abstract: This paper examines the interplay between coherence-based rationality (Rationality-1), which ensures consistency in belief systems via propositional calculus, and preference-based economic rationality (Rationality-2), governed by axioms such as completeness and transitivity. In the standard propositional framework L, the Validity Consensus Property (VCP) - ensuring universal agreement on argument validity across different logical tests - holds universally. However, when the framework is extended to include preference propositions, forming Lp, the imposition of rationality constraints from Rationality-2 affects the semantics of Lp. These changes cause VCP to fail, meaning that agents using different logical tests may disagree on whether an argument is valid. Furthermore, in striving to satisfy the constraints of Rationality-2, an agent may accept conclusions that introduce contradictions into their belief system, thereby violating the consistency required by Rationality-1.

Date: 2025-01-05
New Economics Papers: this item is included in nep-upt
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://wpa.deos.aueb.gr/docs/2025.rationality.logic.pdf First version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aue:wpaper:2502

Access Statistics for this paper

More papers in DEOS Working Papers from Athens University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Ekaterini Glynou ().