Mario Rizzo on rationality. I recommend paying attention to Peter Lewin's first comment, too.
A few thoughts:
Reason is contextual.
Reason is not what you think the person should do, but has to do with the person in question having good reasons given what they know.
Reason cannot assume perfect knowledge.
A rational decision is not monological. For example, I may know that if I want to accomplish X, I must do Y. But I do not want to do Y for moral reasons. Thus, it is rational for me not to do Y, even if it will accomplish X for me, even if someone else does not find doing Y immoral.
Institutions matter. What is rational in one institutional context may be irrational in another.
Perhaps spontaneous order matter as well. That's an idea that needs to be developed more.
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