Rationality and bargaining

Rationality refers to making decisions based on logic and consistent reasoning to achieve specific goals, weighing costs and benefits. Bargaining involves negotiating and exchanging offers to reach an agreement that benefits all parties involved. In simple terms, rationality guides individuals to make the best choices they can, while bargaining is the process of discussing and adjusting those choices to find common ground. Together, they help explain how people make decisions and negotiate in various situations, aiming for mutually satisfactory outcomes through strategic thinking and communication.