ABSTRACT

In the last chapter I suggested that the purely formal optimization principle is treated by economists as being true a priori of any case of deliberate choice and that this can be seen from the manner in which the optimization principle underlies all branches of mainstream economic theory as a principle of explanation. Having once established the formal optimization principle the rest of economics can be regarded as a gradual unfolding of the content of the formal function by means of specific conjectures as to what the actual goals of typical agents are in various types of situations.