Combined notes on the lectures and *SOME* required readings from the course (2023) Rational
Choice Theory. *DISCLAIMER* does NOT include any of the lectures’ practice questions. INCLUDES
notes from (Total: 38 pages):
● Lectures 1-10.
● Kenneth A. Shepsle’s textbook (2nd edition, 2010) “Analyzing Politics: Rationality, Behavior
and Institutions”, chapters 1 and 2 (2.1-2.8).
● Martin J. Osborne’s textbook (2003) “An Introduction to Game Theory”, chapters 1 and 2.
Rational Choice Theory Lecture Notes (Lectures 1-10) and *SOME*
Required Readings
Table of Contents
Lectures 1-10 1
Lectures 1 & 2: Introduction to Rational Choice Theory (RCT) 1
Lecture 3: Utility Function & Expected Utility Theory 5
Lecture 4: Foundation of Theories of Games & Strategic Interactions 6
Lecture 5: Theories of Games & Strategic Interactions (Part 1) 11
Lectures 6 & 7: Theories of Games & Strategic Interactions (Part 2) 14
Lecture 8: Market (Individualism) Failure & Solution 20
Lectures 9 & 10: Aggregating Preferences & Problems It Raises 24
“Analyzing Politics: Rationality, Behavior and Institutions” 29
Part 1: INTRODUCTION 29
1. It Isn't Rocket Science, but ... 29
2. Rationality: The Model of Choice 30
“An Introduction to Game Theory” 33
1. Introduction 33
I Games with Perfect Information 34
2. Nash Equilibrium: Theory 34
, 1
Lectures 1-10
Lectures 1 & 2: Introduction to Rational Choice Theory (RCT)
Introduction
Political science at the end of WWII:
● Thick descriptions.
● Normative component = many judgements about how it worked & the way the world should
work → Marxism, Liberalism, Capitalism.
● Political science = descriptive & judgmental > analytical.
How could we evaluate the merits of these claims?
● Judgments & speculation = subjective.
● Could we move toward a more objective approach?
○ Research’s subjectivity & objectivity = continuum (fuzzy theory).
○ NO pure objective social science research, BUT some prefer to minimise subjective
factors’ influence by scientific & standardised approaches + peer review process.
● Vienna Circle’s (20th century): Group of philosophers/scientists that promoted the idea of
“logical positivism/empiricism” = only prepositions verified through direct
observation/logical proof have meaning.
➔ Economists among the first groups who:
◆ Internalised & started applying logical positivism in social sciences =
impacted scientific research in different fields.
◆ Applied RCT to modern social issues.
Criticisms of RCT:
● Green & Shapiro = discrepancy between practitioners’ faith in RCT & its failure to deliver
empirically, warrants a closer inspection of RCT as a scientific enterprise.
● Perestroika Movement = dismantling of the Orwellian system in APSA.
Responses to criticisms: → problems with these arguments:
● Fiorina = how could political science have ● Empiricism ≠ RCT ≠ formal
prospered otherwise? (mathematical) modelling.
● Behavioural economics is offered to
● Shepsle = do NOT let go of something until
complement RCT.
you have something else to hold on to.
Tributes:
● Hume = Scottish philosopher in the Enlightenment who discussed utilitarianism & logical positivism.
● Ibn Khaldun = Tunisian philosopher & social scientist (process tracing), arguing good governance &
offering ethnographical analysis.
● Wittgenstein = Austrian philosopher → “nothing is so difficult as not deceiving oneself.”
Choice Theory. *DISCLAIMER* does NOT include any of the lectures’ practice questions. INCLUDES
notes from (Total: 38 pages):
● Lectures 1-10.
● Kenneth A. Shepsle’s textbook (2nd edition, 2010) “Analyzing Politics: Rationality, Behavior
and Institutions”, chapters 1 and 2 (2.1-2.8).
● Martin J. Osborne’s textbook (2003) “An Introduction to Game Theory”, chapters 1 and 2.
Rational Choice Theory Lecture Notes (Lectures 1-10) and *SOME*
Required Readings
Table of Contents
Lectures 1-10 1
Lectures 1 & 2: Introduction to Rational Choice Theory (RCT) 1
Lecture 3: Utility Function & Expected Utility Theory 5
Lecture 4: Foundation of Theories of Games & Strategic Interactions 6
Lecture 5: Theories of Games & Strategic Interactions (Part 1) 11
Lectures 6 & 7: Theories of Games & Strategic Interactions (Part 2) 14
Lecture 8: Market (Individualism) Failure & Solution 20
Lectures 9 & 10: Aggregating Preferences & Problems It Raises 24
“Analyzing Politics: Rationality, Behavior and Institutions” 29
Part 1: INTRODUCTION 29
1. It Isn't Rocket Science, but ... 29
2. Rationality: The Model of Choice 30
“An Introduction to Game Theory” 33
1. Introduction 33
I Games with Perfect Information 34
2. Nash Equilibrium: Theory 34
, 1
Lectures 1-10
Lectures 1 & 2: Introduction to Rational Choice Theory (RCT)
Introduction
Political science at the end of WWII:
● Thick descriptions.
● Normative component = many judgements about how it worked & the way the world should
work → Marxism, Liberalism, Capitalism.
● Political science = descriptive & judgmental > analytical.
How could we evaluate the merits of these claims?
● Judgments & speculation = subjective.
● Could we move toward a more objective approach?
○ Research’s subjectivity & objectivity = continuum (fuzzy theory).
○ NO pure objective social science research, BUT some prefer to minimise subjective
factors’ influence by scientific & standardised approaches + peer review process.
● Vienna Circle’s (20th century): Group of philosophers/scientists that promoted the idea of
“logical positivism/empiricism” = only prepositions verified through direct
observation/logical proof have meaning.
➔ Economists among the first groups who:
◆ Internalised & started applying logical positivism in social sciences =
impacted scientific research in different fields.
◆ Applied RCT to modern social issues.
Criticisms of RCT:
● Green & Shapiro = discrepancy between practitioners’ faith in RCT & its failure to deliver
empirically, warrants a closer inspection of RCT as a scientific enterprise.
● Perestroika Movement = dismantling of the Orwellian system in APSA.
Responses to criticisms: → problems with these arguments:
● Fiorina = how could political science have ● Empiricism ≠ RCT ≠ formal
prospered otherwise? (mathematical) modelling.
● Behavioural economics is offered to
● Shepsle = do NOT let go of something until
complement RCT.
you have something else to hold on to.
Tributes:
● Hume = Scottish philosopher in the Enlightenment who discussed utilitarianism & logical positivism.
● Ibn Khaldun = Tunisian philosopher & social scientist (process tracing), arguing good governance &
offering ethnographical analysis.
● Wittgenstein = Austrian philosopher → “nothing is so difficult as not deceiving oneself.”
