Rational Choice Theory Flashcards, test questions and answers

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What is Rational Choice Theory?

Rational Choice Theory is a psychological theory that suggests people make decisions based on a cost-benefit analysis. It is used in many fields including economics, sociology, and political science to explain social phenomena. The theory suggests that people weigh the costs and benefits of their decisions before making them, and this then helps them determine what options are most beneficial or desirable for them.The central idea behind Rational Choice Theory is that individuals are rational actors who make rational choices based on the information available to them. This means they take into account all the costs associated with their decision-making process such as time, effort, money, risk and other factors before making their final choice. For example, when deciding which job offer to accept an individual might consider how much money each job pays as well as how far away it is from home or if there are any travel costs involved in getting to work each day. In this way they weigh up all the pros and cons associated with each option before deciding which one would be best for them. Rational Choice Theory has been applied to numerous aspects of human behavior including crime, voting patterns and even consumer decision-making processes. In terms of crime for example research has suggested that criminals engage in a kind of cost-benefit analysis where they weigh up the rewards (such as money) against potential punishments (jail time) before committing criminal acts. Similarly when it comes to voting behaviour research has shown voters tend to act rationally by considering factors such as the political party’s policies or its leader’s views before casting their ballots at an election. In summary Rational Choice Theory provides us with insight into how humans make decisions by suggesting we act rationally by taking into account both costs and benefits associated with our actions before settling upon our final choice.