Money pump

In economic theory, the money pump argument is a thought experiment showing that rational behavior requires transitive preferences. Classical economic theory assumes that preferences are transitive: if someone thinks A is better than B and B is better than C, then they must think A is better than C. In other words, there cannot be a


In economic theory, the money pump argument is a thought experiment showing that rational behavior requires transitive preferences. Classical economic theory assumes that preferences are transitive: if someone thinks A is better than B and B is better than C, then they must think A is better than C. In other words, there cannot be a "cycle" of preferences.
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