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    Disciplines and Ideas in The Social Sciences

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    Marie Christine Pajanil
    Rational choice theory proposes that individuals make rational decisions by weighing costs against benefits to maximize personal advantage. It assumes people act rationally and self-interestedly based on available information. The document discusses the basic concepts, assumptions, strengths, and criticisms of rational choice theory as applied to social sciences.

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    Disciplines and Ideas in The Social Sciences

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    Marie Christine Pajanil
    12 views16 pages
    Rational choice theory proposes that individuals make rational decisions by weighing costs against benefits to maximize personal advantage. It assumes people act rationally and self-interestedly based on available information. The document discusses the basic concepts, assumptions, strengths, and criticisms of rational choice theory as applied to social sciences.

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    Rational choice theory proposes that individuals make rational decisions by weighing costs against benefits to maximize personal advantage. It assumes people act rationally and self-interestedly based on available information. The document discusses the basic concepts, assumptions, strengths, and criticisms of rational choice theory as applied to social sciences.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views16 pages

    Disciplines and Ideas in The Social Sciences

    Uploaded by

    Marie Christine Pajanil
    Rational choice theory proposes that individuals make rational decisions by weighing costs against benefits to maximize personal advantage. It assumes people act rationally and self-interestedly based on available information. The document discusses the basic concepts, assumptions, strengths, and criticisms of rational choice theory as applied to social sciences.

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    DISCIPLINES

    AND IDEAS
    IN THE
    SOCIAL
    SCIENCES
    DISCIPLINES & IDEAS IN THE SOCIAL SCIENCES

    Rational
    Choice Theory
    Ms. Marie Christine Pajanil
    LEARNING OBJECTIVES:
    At the end of the lesson, the students are expected to
    be able to:
    Predict the social consequences of decision making based
    on scarcity.
    Describe the significance placed on individual by rational
    choice.
    Analyze the basic concepts and principles of Rational
    Choice Theory and apply its importance in examining socio-
    cultural, economic, and political conditions.
    Rational Choice Theory
    It is the view that people behave as they do because they
    believe that performing their choice actions has more
    benefits than costs.

    It is a principle in economics that theorizes that people will


    always try and make the most economic and efficient
    decision when given a choice between one or more things.
    Rationality means that you're choosing, selecting, and
    acting as if you are weighing the cost and benefits that
    would serve your goals and pursuits in life.

    Rationality is a pattern of choices, not just one


    choice.
    In Filipino, we call this 'sulit'. We hope to 'makasulit'
    in whatever we buy or purchase. "Getting more or
    less" is an indication of you being smart.
    COST - an amount that has to be paid or spent to
    buy or obtain something.
    BENEFIT - an advantage or profit gained from
    something.

    So where does Rational Choice Theory come from?


    Much of the ideas can be traced back to the economies
    Adam Smith.
    Rational Choice Theory was developed further by an
    American Sociologist George Homans, who in 1961
    laid the basic framework for Exchange Theory.
    Considered as the pioneer of the rational choice
    theory.

    Exchange Theory is an application of rational


    choice theory to social interactions.
    Another main proponent of rational choice theory is
    James Coleman (1931-1995).

    It is always worth considering whether action is rational


    or not.

    The main assumption behind rational choice theory is the


    idea that everything people do is fundamentally rational.
    Assumptions of Rational Choice Theory
    Source: (Pasion 2018)

    1. Individualism - it is the ability of individual to


    ultimately take actions.
    2. Optimality - individuals choose their actions
    optimally, given their individual preferences as
    well as the opportunities or constraints with
    which the individuals face.
    Assumptions of Rational Choice Theory
    Source: (Pasion 2018)

    3. Structures - these structures and norms that


    dictate a single course of action are merely special
    cases of rational choice theory.
    4. Self-Regarding Interest - the action of an
    individual is concerned entirely with his/her own
    welfare.
    5. Rationality - it is the most predominant
    assumption of the rational choice theory.
    Strengths of Rational Choice Theory
    Source: (Pasion 2018)

    1. Generality - this means that one set of


    assumptions is compatible with any set of
    assumptions about the environmental setting in
    which the actor is present.
    2. Parsimony - the common knowledge of
    rationality assumption.
    Strengths of Rational Choice Theory
    Source: (Pasion 2018)

    3. Predictive - whose predictions about the


    measurable real world phenomena rule out a much
    larger set of outcomes that what is already general.
    PROS OF RATIONAL CHOICE THEORY

    Helpful in explaining individual and collective


    behaviors.
    All theories attempt to give meaning to the things
    we observe in the real world.
    Can help to explain behavior that seems irrational.
    CONS OF RATIONAL CHOICE THEORY

    Individual do not always make rational decisions.


    In reality, people are often moved by external
    factors that are not rational, such as emotions.
    Individuals do not have perfect access to the
    information they would need to make the most
    rational decision every time.
    CONS OF RATIONAL CHOICE THEORY

    Lastly, the rational choice assumption that almost


    everything humans do is rational is problematic,
    since not all human actions are rational.
    THANK YOU!

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