DISS: RATIONAL CHOICE THEORY

• Rational Choice Theory believes that the behavior and social life of a person as a whole can be formulated through the person's rational choices.
• RATIONAL CHOICE THEORY


  According to Jonathan Levin and Paul Milgram rational choice is defined to mean the process of determining what options are available and then choosing the most preferred once according to some consistent criterion. In this sense, rational choice is present as maximizing a real-valued utility function. Rational choice also explains social phenomena as outcomes of individual action.
• RATIONAL CHOICE THEORY


  According to Rafael Wittek, choices are "rational" if they meet some consistency criterion as define by a decision theory and are suitable to achieve specific goals, guven the constraints of the situation. Overall, rayional choice is used to predict social consequences of decision-making based scarcity.
• Social Consequences means the effect upon people and their relationships with the community that come from a particular decision
• Scarcity arises from people's deman for resources is said to be infinite while the worls resources such as land, labor, and capital are finite.
• Scarcity is a fundamental economic problem arising from unlimited wants of people with limited resources. Therefore, decision making always considers a rational choice.
• RATIONAL CHOICE THEORY


  • Rational Choice affirmed that the behavior and social life of a person as a whole can be explained through a person's rational choice
  • Used to know why a person behaves or acts the way he/she does
  • Assumes that an individual action is based on their conduct on logical process. They take action with reason when making choices
  • Their choices are intended for their pleasure or gain
• BASIC CONCEPTS AND PRINCIPLES PF RATIONAL CHOICE

  UTILITY MAXIMIZATION means that a person will choose the object that provides the greatest reward at the lowest costs.
• BASIC CONCEPTS AND PRINCIPLES PF RATIONAL CHOICE



  STRUCTURE OF PREFERENCES means that a person will make choices related to his/her goals and determine the ways to attain those goals.
• BASIC CONCEPTS AND PRINCIPLES PF RATIONAL CHOICE


  CENTRALITY OF INDIVIDUALS IN THE EXPLANATION OF COLLECTIVE OUTCOMES means the results of individual actions and interactions will lead to social change or group outcomes
• PRINCIPLES OF RCT

  • Individuals are rational being with free will.
  • They can think in logical way
  • Individuals have interests
  • The interests of a person define her utilities
  • Individual make choices
  • The choices people make influence their utilities
• STRENGTHS OF RCT

  Generality is the most general theory of social action used to understand all human behavior
• STRENGTHS OF RCT

  Parsimony is the explanation of a thing or event is made with the fewer possible assumption
• STRENGTHS OF RCT

  Predictive is the decisions of individuals depend on the structures and assumptions
• WEAKNESSES OF RCT

  • Difficulty to decide in case of inadequate information
  • Human social actions and interactions are complex
  • Assumption that all human action is rational
• Rational Choice Theory tries to explain that human behavior in terms of UTILITY MAXIMIZATION, or the idea that when a person is confronted will choose the option that best serve his or her objectives
• Rational means people act based on or in accordance with reason and logic
• Choice refers to an act of selecting or making decision when faced with two or more possibilities