Rationality requires a complete knowledge and anticipation of the consequences that will follow on each choice. In fact, knowledge of consequences is always fragmentary.

The function of knowledge in the decision-making process is to determine which consequences follow upon which of the alternative strategies. It is the task of knowledge to select from the whole class of possible consequences a more limited subclass, or even (ideally) a single set of consequences correlated with each strategy.

The fact that goals may be dependent for their force on other more distant ends leads to the arrangement of these goals in a hierarchy - each level to be considered as an end relative to the levels below it and as a mean to the levels above it.

The criterion of efficiency dictates that choice of alternatives which produces the largest result for the given application of resources.