Praxeology's basic principles are abstract and general, transcending differences among individuals, cultures, and societies. Consequently, praxeology is distinct from psychology and sociology. In particular, it does not depend on specific psychological assumptions that may only hold within limited human populations. As we shall see in Section 5, the psychological behavior of most people in present society represents only a narrow band of human potential, and it would be an unfortunate error to try to extrapolate from that behavior, as observed in empirical psychological studies, to a free-market society, for instance. In order to arrive at a correct general understanding of human action, an approach free of such assumptions is required.

Although praxeology's analytical method is nonmathematical, it nevertheless resembles mathematics in its abstract, deductive approach. The abstractness of mathematics, of course, does not detract from its utility in physics, engineering, business, and countless other practical areas; in fact, it is the very abstractness of the field that makes such general application possible. In the same way, praxeology's abstract approach allows it to remain valid among people of diverse cultures—Eastern or Western, rational-scientific or mystical, utilizing primitive or sophisticated technology.