 Let’s unpack this diagram a bit, and take a look, first, at the account of perfect rationality that can be derived from it. The behavior of the agent in the environment \(E\) (from a class \(\bE\) of environments) produces a sequence of states or snapshots of that environment. A performance measure \(U\) evaluates this sequence; notice the box labeled “Performance Measure” in the above figure. We let \(V(f,\bE,U)\) denote the expected utility according to \(U\) of the agent function \(f\) operating on  \(\bE\).[16]  Now we identify a perfectly rational agent with the agent function: 