Choices Are "Ra

An economic principle that asstimes that individuals always make pruGent
and !logical decisions that provide them with the greatest benefit or satisfaction
and that are in their highest self-interest is the idea behind the Rational
Choice Theory.Human beings,thus,their behavior on rational calculations
of the benefits and risks involved in doing an action. People therefore act
with rationality when making choices that are aimed at optimization of their
pleasure or profit.
＂Rational choice theory", alsc kriown as the choice theory or rational
action theory, is a general theory of action and is considered one of the
three overarching meta-theoretical paradigms in the social sciences, with
structural-institutional theories and culiural theories constituting its main
cormpetitors.Rational choice thecry czpiains social phencmena as outcomes
of individual choices that can-in some way-be construed as rational./
Choices are “rational" if they meet some consistency criterion as defined
by a decision theory and are suitable to achieve specific goals, given the
constraints of the situation.Rational choice theory comes in many varieties,
depending on the assumptions that are made concerningpreferences,beliefs,
and constraints-the key elements of all rational choice explanations.
4 Preferences denote the positive or negative evaluations individuals
attach to possible outcomes of their actions. Preferences can have mary
roots, ranging from culturally transmitted tastes for food or other items to
personal habits and commitments. Beliefs refer to parceived cause-effect
relations, including the perceived likelihocd with whichan individual's actions

will result in different possible outcomes. Constraints define the limits to
the set of feasible actions.
Economists use a iogicai axiom wherein they maie a decision.They
make a certain pattern in which they can make a rational choice.
1. A person starts with a desire - create a belief-propels you to act
2. A person starts with a desire - propels you to act immediately.
3. A person starts with a desire - create a belief-come upon new
information-create a new belief - propels you to act
4. A person starts with a desire - seek informatian - create a beliet
－ propels vou to act.
Action
Desires
Beliefs
Intormation
We all know that money is a kind of motivation for humans. Actions are
shaped because of that certain desire to get more like money. To get the
specific desire, humans would undergo decision making process in which
rational choice theory can be effective. It is normal that people always thinks
of the cost and benefit of every action and chooses the best outcome.There
are three assumptions oí rational choice theory about an individua!'s
preference.
y1. Completeness-all actions can be ranked in a complete partial
ordering of preference (indifference between two or more is possible).
In other words,all pairs of actions can be compared with each other.

1.2. Transitivity -if action A is preferred to B, and action B is preferred
to C,then A is preferred to C.
2·3. Independence of irrelevant alternatives-If A is preferred to Bout
of the choice set {A,B}, then introducing a third alternative X, thus
expanding the choice set to {A,B,X},must !eave A preferred to B.
An individual's preferences can also take forms:
＇·Strict preference - occurs when an individual prefers A to B and
they are not equally preferred.
·A weak preference - can be held in which an individual has
either prefeis Aover B or is indifierent between them..
Indifference-occurs when an individual does not prefer A to B,
or B to A.
Strengths and Weaknesses
Strengths
1. The iauonal choice approach allows preferences to be
represented as real-valued utility functions.
2. It provides a compact theory that makes empirical
predictions with a relatively sparse model
3. this approach, is strikingly general. It has been used to
analyze nof only personal and household choices about
traditional econcmic matters like consumptien and savings,
but also chcices about education, marriage, cnild-bearing,
migration,crime and so on, as well as business decisions
aboui output, investment, hiring, entry, exit, etc. with varying
degrees of success
Weaknesses
1.
Bourdieu argued that social agents do not continuously
calculate according 1o explicit rational and economic criteria.
Social agents act according to their "feel for the game"
2.
the empirical outpuis oi rational choice theory have beer
limited. raticnal choice theory has provided very litile to the
overall understanding of political interaction
3.
Nohel laureate Herbert Simon propesed the theory of
tounderd rationality. which says that people are not always
able to obtain all the information they would need to make
the besi possible decision.

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An economic principle that asstimes that individuals always make pruGent

Choice Theory.Human beings,thus,their behavior on rational calculations

＂Rational choice theory", alsc kriown as the choice theory or rational

action theory, is a general theory of action and is considered one of the

three overarching meta-theoretical paradigms in the social sciences, with

structural-institutional theories and culiural theories constituting its main

cormpetitors.Rational choice thecry czpiains social phencmena as outcomes

of individual choices that can-in some way-be construed as rational./

Choices are “rational" if they meet some consistency criterion as defined

constraints of the situation.Rational choice theory comes in many varieties,

depending on the assumptions that are made concerningpreferences,beliefs,

and constraints-the key elements of all rational choice explanations.

4 Preferences denote the positive or negative evaluations individuals

attach to possible outcomes of their actions. Preferences can have mary

personal habits and commitments. Beliefs refer to parceived cause-effect

relations, including the perceived likelihocd with whichan individual's actions

the set of feasible actions.

Economists use a iogicai axiom wherein they maie a decision.They

make a certain pattern in which they can make a rational choice.

1. A person starts with a desire - create a belief-propels you to act

2. A person starts with a desire - propels you to act immediately.

3. A person starts with a desire - create a belief-come upon new

information-create a new belief - propels you to act

4. A person starts with a desire - seek informatian - create a beliet

－ propels vou to act.

specific desire, humans would undergo decision making process in which

are three assumptions oí rational choice theory about an individua!'s

y1. Completeness-all actions can be ranked in a complete partial

ordering of preference (indifference between two or more is possible).

In other words,all pairs of actions can be compared with each other.

2·3. Independence of irrelevant alternatives-If A is preferred to Bout

of the choice set {A,B}, then introducing a third alternative X, thus

expanding the choice set to {A,B,X},must !eave A preferred to B.

An individual's preferences can also take forms:

＇·Strict preference - occurs when an individual prefers A to B and

they are not equally preferred.

·A weak preference - can be held in which an individual has

either prefeis Aover B or is indifierent between them..

Indifference-occurs when an individual does not prefer A to B,

Strengths and Weaknesses

1. The iauonal choice approach allows preferences to be

represented as real-valued utility functions.

2. It provides a compact theory that makes empirical

predictions with a relatively sparse model

3. this approach, is strikingly general. It has been used to

analyze nof only personal and household choices about

traditional econcmic matters like consumptien and savings,

but also chcices about education, marriage, cnild-bearing,

migration,crime and so on, as well as business decisions

aboui output, investment, hiring, entry, exit, etc. with varying

Bourdieu argued that social agents do not continuously

calculate according 1o explicit rational and economic criteria.

Social agents act according to their "feel for the game"

the empirical outpuis oi rational choice theory have beer

limited. raticnal choice theory has provided very litile to the

overall understanding of political interaction

Nohel laureate Herbert Simon propesed the theory of

tounderd rationality. which says that people are not always