Rational
Choice
Theory
WEEK 9 DISCIPLINES AND IDEAS
IN SOCIAL SCIENCES
FA C I L I TAT E D B Y: M A M E S T H E R Q .
DE FELIPE
Review:
WHO IS THE FATHER OF
PSYCHOANALYSIS?
WHAT ARE THE 3 LEVELS
OF MENTAL LIFE?
WHAT ARE THE 3
PROVINCES OF THE MIND?
Rational Choice Theory
It is the view that people behave as they do
because they believe that performing their
chosen actions has more benefits than costs.
That is, people make rational choices based on
their goals, and those choices govern their
behavior.
an advantage or profit
gained from something.
an amount that
has to be paid or
spent to buy or
obtain something.
Assumptions
of Rational
Choice
Theory
INDIVIDUALISM
OPTIMALITY
STRUCTURES
SELF-REGARDING INTEREST
RATIONALITY
Individualism
It is the ability of
individuals to ultimately
take actions. (Independent,
self-reliant)
Optimality
• Individuals choose their
actions optimally, given their
individual preferences as well
as the opportunities or
constraints with which the
individuals face. (best or most
effective)
Structures
• These structures and norms
that dictate a single course of
action are merely special cases
of rational choice theory.
Self-Regarding
Interest
• This assumption states
that the actions of an
individual is concerned
entirely with his/her own
welfare.
Rationality
• It is the most predominant
assumption of the rational
choice theory.
Strengths
GENERALITY
PA R S I M O N Y
PREDICTIVE
Generality
• This means that one set of assumptions relating to each
type of actor in a given circumstance is compatible with any
set of assumptions about the environmental setting in
which the actor is present.
Parsimony
•
cheapness/frugality; extreme
unwillingness to spend money or use
resources; The common knowledge of
rationality assumption.
Predictive
• Used to produce a wide variety of
decisive theories, whose predictions
about the measurable real world
phenomena rule out a much larger set of
outcomes that what is already general.
What do you
think are the
weaknesses of
Rational Choice
Theory?
BUDDY TASK:
Do a Cost and Benefit
Analysis of Going to
College after SHS.
COST
BENEFIT
Conclusion: ________________________________
Thank you very
much for your
active
participation.