Sunday, July 14, 2013

About Rational Choice Theory


Rational Choice Theory, (or Rational Action Theory or Choice Theory) is a theoretical framework for understanding and often formally modeling social and economic behavior.

At the same time, Rational Choice Theory is also central to some of modern political science,  sociology,  and philosophy.

In this theory the rationality, interpreted as "wanting more rather than less of a good", is widely used as an assumption of the behavior of individuals in economic systems (microeconomic models and analysis) and also appears in almost all economics textbook treatments of human decision-making.

It attaches "wanting more" to instrumental rationality, which involves seeking the most cost-effective means to achieve a specific goal without reflecting on the worthiness of that goal.

An American economist Gary Stanley Becker (born December 2, 1930) that won the 1992 Nobel Memorial Prize in Economic Sciences for his studies of discrimination, crime, and human capital was an early proponent of applying rational actor models more widely.

 

Footnote: Some materials is from Wikipedia

Aghanemat Aghayev

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