10. Action as an Exchange
We have stated that all action involves an exchange, a giving up of a state of affairs
for what the actor expects will be a more satisfactory state. We may now elaborate on
the implications of this truth in the light of the numerous examples that have been given
in this chapter.
Every aspect of action has involved a choice among alternatives, a giving up of some goods
for the sake of acquiring others.
Wherever the choice occurred, whether among uses of durable consumers' goods or of capital
goods, saving versus consumption, labor versus leisure, etc., such choices among alternatives,
Such renouncing of one thing in favor of another were always present.
In each case, the actor adopted the course that he believed would afford him the highest
utility on his value scale, and in each case the actor gave up what he believed would turn
out to be a lesser utility.
Before analyzing the range of alternative choices further, it is necessary to emphasize
is that man must always act.
Since he is always in a position to improve his lot, even doing nothing is a form of acting.
Doing nothing, or spending all of his time in leisure, is a choice that will affect his
supply of consumers' goods.
Therefore, man must always be engaged in choosing and in action.
Since man is always acting, he must always be engaged in trying to attain the greatest
height on his value scale, whatever the type of choice under consideration.
There must always be room for improvement in his value scale.
Otherwise, all of man's wants would be perfectly satisfied, and action would disappear.
Since this cannot be the case, it means that there is always open to each actor the prospect
of Improving His Lot, of attaining a value higher than he is giving up, that is, of making
a psychic profit.
What he is giving up may be called his costs, that is, the utilities that he is forgoing
in order to attain a better position.
Thus an actor's costs are his foregone opportunities to enjoy consumer's goods.
Similarly, the greater utility that he expects to acquire because of the action may be considered
his psychic income or psychic revenue, which in turn will be equal to the utility of the
goods he will consume as a result of the action.
Hence, at the inauguration of any action, the actor will believe that this course of
of Action will, among the alternatives, maximize his psychic income or psychic revenue, that
is, attain the greatest height on his value scale.