Based on the classical microeconomics about rational man hypothesis, this article proposes the advan?tage of the system of scarce resources allocation under the market economy, and puts forward that the essence of the rational man hypothesis is individual rationality (non-individualism), and shows that individual rationality is the primary reason of market economy outperforming other systems of economy. This article also criticizes X-effi?ciency Theory’s limitation on individual rationality. After introducing Vernon L. Smith and his conclusion...
