Q: Curt: What’s Limit-Based Reasoning? (from Economics) Limit-based reasoning is

Q: Curt: What’s Limit-Based Reasoning?

(from Economics)
Limit-based reasoning is an application of full-accounting of incentives, that consists of constructing a field of rational incentives for human behavior by working backward from the constraints (limits) on those incentives, producing an adversarial competition between wants and limits, that narrows the potential set of rational choices. The purpose of limit-based reasoning is to prevent overly optimistic or pessimistic predictions, that do not fully account for limitations on choice.

Characteristics:
Constrained: Operates within a set of predefined boundaries, which could be mathematical, ethical, or empirical.
Focused: Because it operates within limits, it may be more focused and specific than other forms of reasoning.
Pragmatic: Likely geared towards solving real-world problems where resources or data are limited.

Applications:
Mathematics: In calculus, limits are used to understand the behavior of functions at certain points.
Computer Science: Algorithms often have to operate within computational limits.
Ethics: Ethical frameworks often impose limits on what actions are considered moral or immoral.
Economics: Economic models often assume limits like scarcity of resources.