The Paradox of Intransitive Preferences in Rational Choice Theory

Explore a thought-provoking 11-minute mathematics video that delves into the rational choice model and its fundamental axioms of completeness and transitivity. Examine how breaking the transitivity axiom leads to a fascinating paradox known as the money pump, where a supposedly rational actor can be systematically exploited. Through clear examples and detailed explanations, learn why transitivity must either remain as a core axiom or why the model might need to sacrifice some realism to avoid this logical trap. Follow along with a structured discussion that progresses from basic axioms through practical examples to a thorough analysis of this mathematical paradox, concluding with broader implications for rational choice theory.