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What Do Economists Mean by Rationality

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What do economists mean by rationality?


Definitions:

Fair Value

An estimation of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.

Par Value

The face value of a bond or stock, indicating the amount that must be repaid at maturity (for bonds) or the nominal value of a share (for stocks).

Consideration Transferred

Consideration transferred is the total value of assets, liabilities, or equity shares that an acquirer gives up in order to acquire control of a target company in a business combination.

Business Combination

A transaction or event where a company acquires control over one or more businesses, often through a merger or acquisition.

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