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NOTE 1.10. Action as an Exchange

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10. Action as an Exchange

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We have stated that all action involves an exchange, a giving up of a state of affairs

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for what the actor expects will be a more satisfactory state. We may now elaborate on

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the implications of this truth in the light of the numerous examples that have been given

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in this chapter.

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Every aspect of action has involved a choice among alternatives, a giving up of some goods

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for the sake of acquiring others.

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Wherever the choice occurred, whether among uses of durable consumers' goods or of capital

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goods, saving versus consumption, labor versus leisure, etc., such choices among alternatives,

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Such renouncing of one thing in favor of another were always present.

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In each case, the actor adopted the course that he believed would afford him the highest

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utility on his value scale, and in each case the actor gave up what he believed would turn

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out to be a lesser utility.

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Before analyzing the range of alternative choices further, it is necessary to emphasize

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is that man must always act.

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Since he is always in a position to improve his lot, even doing nothing is a form of acting.

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Doing nothing, or spending all of his time in leisure, is a choice that will affect his

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supply of consumers' goods.

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Therefore, man must always be engaged in choosing and in action.

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Since man is always acting, he must always be engaged in trying to attain the greatest

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height on his value scale, whatever the type of choice under consideration.

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There must always be room for improvement in his value scale.

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Otherwise, all of man's wants would be perfectly satisfied, and action would disappear.

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Since this cannot be the case, it means that there is always open to each actor the prospect

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of Improving His Lot, of attaining a value higher than he is giving up, that is, of making

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a psychic profit.

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What he is giving up may be called his costs, that is, the utilities that he is forgoing

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in order to attain a better position.

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Thus an actor's costs are his foregone opportunities to enjoy consumer's goods.

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Similarly, the greater utility that he expects to acquire because of the action may be considered

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his psychic income or psychic revenue, which in turn will be equal to the utility of the

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goods he will consume as a result of the action.

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Hence, at the inauguration of any action, the actor will believe that this course of

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of Action will, among the alternatives, maximize his psychic income or psychic revenue, that

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is, attain the greatest height on his value scale.