RCT

• Rational choice theory


  Assumes that individuals make decisions by considering the costs, risks, and benefits of their choices
• Rational choice theory

  • Individuals are motivated by personal goals and driven by their own desires
  • Since resources such as money, time, and energy are finite, individuals must choose attainable means to reach their goals and desires
  • Social phenomena can be explained through rational individual actions
• Rational choice theory was proposed in the 18th century by the economist and philosopher Adam Smith
• Tragedy of the commons


  Explains the difficulty of making a choice for one's benefit, at the cost of another individual, especially when the resource is scarce and limited
• When individuals keep consuming for their own personal gain without any restrictions, they may deplete the resources of their group, leaving none for others
• If each farmer group decides based on their personal benefits

  The resources would be depleted more quickly
• It is important to cooperate with other groups or individuals when making rational choices to prevent the depletion of shared resources
• Scenarios in the tragedy of the commons

  • Both farmer groups limit grazing time (20 years)
  • Farmer group A limits, farmer group B does not (10 years)
  • Farmer group B limits, farmer group A does not (10 years)
  • Neither farmer group limits grazing time (5 years)
• Prisoner's dilemma


  A situation where two prisoners, both suspects in a crime, have been separated and unable to communicate, and each has the option to confess or remain silent
• Consequences of prisoner's decisions

  • Both prisoners stay silent (1 year in prison each)
  • Prisoner A stays silent, Prisoner B betrays (Prisoner A 8 years, Prisoner B free)
  • Prisoner A betrays, Prisoner B stays silent (Prisoner A free, Prisoner B 8 years)
  • Both prisoners betray (5 years in prison each)
• The key to understanding the prisoner's dilemma is that one prisoner will benefit if he or she betrays the other prisoner, but if both confess, they will spend more time in prison
• Similar to the tragedy of the commons, the prisoner's dilemma shows that a choice based on one's individual best interest may not always be the most rational one
• Prisoner A stays silent


  They both spend one year in prison
• Prisoner B goes free


  Prisoner A serves eight years in prison
• Prisoner A betrays Prisoner B

  Prisoner A goes free
• They both stay silent


  They both spend five years in prison
• Rational Choice Theory


  • Individuals are motivated by personal goals and driven by their own desires
  • Individuals must choose attainable means to reach their goals and desires
  • Social phenomena can be explained through rational individual actions
• When making decisions in society, benefits must be considered in the context of risks and costs
• Since resources are finite and excessive consumption may deplete these resources, limits must be placed
• Tragedy of the commons


  One can receive more benefits when excessively consuming a scarce resource at the cost of other individuals
• Prisoner's dilemma


  • Parties cannot communicate
  • Failure of parties to cooperate will result in undesirable consequences for both
  • Cooperation and implementing limits or regulations will benefit both parties in the long term
• Rational choice theory assumes that individuals are driven by their own goals and desires
• In the tragedy of the commons, all parties will suffer if no one restricts consumption
• In the prisoner's dilemma, parties are unable to communicate with each other
• In our society, self-interest is not the most important consideration in creating a sustainable environment