Rationality is the quality or state of being rational – that is, being based on or agreeable to reason. Rationality implies the conformity of one’s beliefs with one’s reasons to believe, and of one’s actions with one’s reasons for action. “Rationality” has different specialized meanings in philosophy,economics, sociology, psychology, evolutionary biology, game theory and political science.
To determine what behavior is the most rational, one needs to make several key assumptions, and also needs a logical formulation of the problem. When the goal or problem involves making a decision, rationality factors in all information that is available (e.g. complete or incomplete knowledge). Collectively, the formulation and background assumptions are the model within which rationality applies. Rationality is relative: if one accepts a model in which benefitting oneself is optimal, then rationality is equated with behavior that is self-interested to the point of being selfish; whereas if one accepts a model in which benefiting the group is optimal, then purely selfish behavior is deemed irrational. It is thus meaningless to assert rationality without also specifying the background model assumptions describing how the problem is framed and formulated.
Rational egoism (also called rational selfishness) is the principle that an action is rational if and only if it maximizes one’s self-interest. The view is a normative form of egoism. It is distinct from psychological egoism (according to which people are motivated only to act in their own self-interest) and ethical egoism (that moral agents ought only to do what is in their own self-interest).