RATIONAL CHOICE

THEORY

Unit 2

Introduction

Rational choice theory 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.

Some sociologists use rational choice theory to explain

social change. According to them, social change occurs

because individuals have made rational choices.

Contd…

For example, suppose many people begin to conserve

more energy, lowering thermostats and driving less. An

explanation for this social change is that individual people

have decided that conserving energy will help them

achieve their goals (for example, save money and live

more healthfully) and cause little inconvenience.

Critics argue people do not always act on the basis of cost-

benefit analyses.

Assumptions

Humans are purposive and goal oriented.

Humans have sets of hierarchically ordered preferences, or

utilities.

In choosing lines of behavior, humans make rational

calculations with respect to:

the utility of alternative lines of conduct with reference to

the preference hierarchy

the costs of each alternative in terms of utilities foregone

the best way to maximize utility.

Contd…

Emergent social phenomena -- social structures, collective

decisions, and collective behavior -- are ultimately the

result of rational choices made by utility-maximizing

individuals.

Emergent social phenomena that arise from rational

choices constitute a set of parameters for subsequent

rational choices of individuals in the sense that they

determine:

the distribution of resources among individuals

the distribution of opportunities for various lines of

behavior

the distribution and nature of norms and obligations in a

situation.

Contd…

Attempts to explain all (conforming and deviant) social

phenomenon in terms of how self-interested individuals

make choices under the influence of their preferences. It

treats social exchange as similar to economic exchange

where all parties try to maximize their advantage or gain,

and to minimize their disadvantage or loss.

RCT's basic premises

1. human beings base their behavior on rational

calculations,

2. they act with rationality when making choices,

3. their choices are aimed at optimization of their pleasure or

profit.

RCT, however, cannot explain the existence of certain

social phenomenon such as altruism, reciprocity, and trust,

and why individuals voluntarily join associations and groups

where collective and not individual benefits are pursued.