Notes – Rational Choice Theory 2024
Lecture 01: 02/04/2024
Introduction
Rational choice
- Rational choice theory refers to the school of thought that defines human behaviour and how any
individual is most likely to make decisions.
- It is a framework/ approach of analysing decisions and not a theory.
- It claims to be able to explain how all decisions that are made across individuals.
- Most rational choice is based on economics (cost and benefit calculations):
- Individuals weight the benefits (B) of an action against the costs (C).
- B>C
- Action will take place
- C>B
- Action will not take place
- Rational choice is not just one theory, it is a whole set of theories surrounding a few basic assumptions.
- There is disagreement between the assumptions.
- Rational choice is based on a priori assumptions which result in deductive models of political behaviour.
- Deductive reasoning rather than inductive.
- Starting with a set of a priori assumptions/ theories.
- We make general models based on these assumptions.
- These models are used to predict behaviour.
- The assumptions and models are abstractions (simplifications) of the political world.
- We test the implications of these rational choice models with data.
- Inductive research, on the other hand, starts with observations and then tries to create
generalisations to create theories.
,Notes – Rational Choice Theory 2024
History
- Political science at the end of WW2
- Thick descriptions
- Summary of how institutions worked plus focus on their historical development.
- Normative component
- Many judgements were made about how the rules worked.
- Political science was descriptive and judgemental rather than analytical.
- 1950s to 1970s
- Behaviouralism
- Can we move towards a more objective approach?
- Focus on objective, quantified approaches to explain and predict behaviour (Why?).
- Starting to systematically collect information and find empirical regularities (inductive reasoning).
- Start of logical positivism.
- Initially started being used by economists (economic imperialism).
- This has a huge impact on political science.
- 1970s to 1994
- The combination of economic models and political science led to rational choice.
- The rise of rational choice (reaction to existing thick description).
- Rational choice scholars showed that state intervention does not always succeed in the market.
- Political usage of this idea by neo-liberal (right) politicians.
- 1994 to 2004
- Growing opposition to rational choice.
- Argument:
- Rational choice theory has not yielded empirically useful results.
- This led to a focus on evaluating of their theories empirically.
- Currently
- Rational choice still has an influence on political science.
- Especially in the US, rational choice shapes political science research agendas.
- Rational choice is heavily criticised.
Two types of rational choice models
- Soft rational choice
- Without mathematical formalism and certain assumptions might be softened.
- Hard rational choice
- With mathematical formalism.
,Notes – Rational Choice Theory 2024
Lecture 02: 04/04/2024
Building Blocks 1
Methodological individualism
- The unit of analysis is the individual person.
- If we analyse groups, we see these groups as composed of individuals and their preferences.
- We understand an organisation by explaining the behaviour of its leaders, its members, etc.
- Individuals decide, organisations do not.
- Society is the sum of individuals.
- Society does not shape individuals; individuals are shaped independently of the social
structure.
- Central disagreement with constructivism.
- Every analysis must begin with the individual, deal with individual choices and experiences, with
collectives formed as aggregates.
- Bottom-up analysis.
Rational behaviour (utility maximisation)
- Individuals have goals or desires, and these individuals act in accordance with those goals and desires.
- These can be good and bad (Sadaam Hussein and terrorists are rational).
- If individuals do not act in accordance with their goals and desires, they are irrational.
- Individual wants (goals and desires) are preferences.
- Rational choice does not care about where preferences of individuals come from and why people
want certain things.
Preferences
- What individuals want and desire (preferences) are given.
- These preferences do not change much.
- It does not matter where preferences come from.
- We do not know the preferences of others.
- We make assumptions about the preferences of others.
Self-interest versus selfish
- If an individual has preferences and acts in accordance with these preferences, we call the individual
rational and self-interested.
- People pursue what they find important/ their preferences.
- Preferences can include empathy for others.
- Self-interest does not automatically mean selfish.
, Notes – Rational Choice Theory 2024
Thick versus thin
- Thin version of rationality:
- We do not make any assumptions about an individual’s goal.
- We only know that individuals have goals.
- Thick version of rationality:
- We make more explicit assumptions about the goals of individuals.
- The goal of politicians is to receive as many votes as possible.
Rational choice writing
- i is the term that denotes the individual.
- x , y , z denotes the preferences that an individual (i) has.
- x Pi y
- An individual prefers option x to y.
- Option x is better than y.
- P means > (greater than).
- x Ii y
- An individual is indifferent between option x and y.
- Option x is not preferred to y.
- Option y is not preferred to x.
- I means = (equal to).
- Examples:
- x Pi y P i z
- An individual prefers option x over y and y over z.
- x Ii y Ii z
- An individual is indifferent between the options x and y and between y and z.
- x Pi y I i z
- An individual prefers option x over y but is indifferent between the options y and z.
- An individual is rational if they make a choice between the outcomes that is in accord to their
preferences.
- They choose the outcome that is most preferred.
- A choice is rational if the object chosen is better as any other available object according to
the chooser’s preferences.
- A choice is rational if the object chosen is as good as any other available objects according
to the chooser’s preferences.
Lecture 01: 02/04/2024
Introduction
Rational choice
- Rational choice theory refers to the school of thought that defines human behaviour and how any
individual is most likely to make decisions.
- It is a framework/ approach of analysing decisions and not a theory.
- It claims to be able to explain how all decisions that are made across individuals.
- Most rational choice is based on economics (cost and benefit calculations):
- Individuals weight the benefits (B) of an action against the costs (C).
- B>C
- Action will take place
- C>B
- Action will not take place
- Rational choice is not just one theory, it is a whole set of theories surrounding a few basic assumptions.
- There is disagreement between the assumptions.
- Rational choice is based on a priori assumptions which result in deductive models of political behaviour.
- Deductive reasoning rather than inductive.
- Starting with a set of a priori assumptions/ theories.
- We make general models based on these assumptions.
- These models are used to predict behaviour.
- The assumptions and models are abstractions (simplifications) of the political world.
- We test the implications of these rational choice models with data.
- Inductive research, on the other hand, starts with observations and then tries to create
generalisations to create theories.
,Notes – Rational Choice Theory 2024
History
- Political science at the end of WW2
- Thick descriptions
- Summary of how institutions worked plus focus on their historical development.
- Normative component
- Many judgements were made about how the rules worked.
- Political science was descriptive and judgemental rather than analytical.
- 1950s to 1970s
- Behaviouralism
- Can we move towards a more objective approach?
- Focus on objective, quantified approaches to explain and predict behaviour (Why?).
- Starting to systematically collect information and find empirical regularities (inductive reasoning).
- Start of logical positivism.
- Initially started being used by economists (economic imperialism).
- This has a huge impact on political science.
- 1970s to 1994
- The combination of economic models and political science led to rational choice.
- The rise of rational choice (reaction to existing thick description).
- Rational choice scholars showed that state intervention does not always succeed in the market.
- Political usage of this idea by neo-liberal (right) politicians.
- 1994 to 2004
- Growing opposition to rational choice.
- Argument:
- Rational choice theory has not yielded empirically useful results.
- This led to a focus on evaluating of their theories empirically.
- Currently
- Rational choice still has an influence on political science.
- Especially in the US, rational choice shapes political science research agendas.
- Rational choice is heavily criticised.
Two types of rational choice models
- Soft rational choice
- Without mathematical formalism and certain assumptions might be softened.
- Hard rational choice
- With mathematical formalism.
,Notes – Rational Choice Theory 2024
Lecture 02: 04/04/2024
Building Blocks 1
Methodological individualism
- The unit of analysis is the individual person.
- If we analyse groups, we see these groups as composed of individuals and their preferences.
- We understand an organisation by explaining the behaviour of its leaders, its members, etc.
- Individuals decide, organisations do not.
- Society is the sum of individuals.
- Society does not shape individuals; individuals are shaped independently of the social
structure.
- Central disagreement with constructivism.
- Every analysis must begin with the individual, deal with individual choices and experiences, with
collectives formed as aggregates.
- Bottom-up analysis.
Rational behaviour (utility maximisation)
- Individuals have goals or desires, and these individuals act in accordance with those goals and desires.
- These can be good and bad (Sadaam Hussein and terrorists are rational).
- If individuals do not act in accordance with their goals and desires, they are irrational.
- Individual wants (goals and desires) are preferences.
- Rational choice does not care about where preferences of individuals come from and why people
want certain things.
Preferences
- What individuals want and desire (preferences) are given.
- These preferences do not change much.
- It does not matter where preferences come from.
- We do not know the preferences of others.
- We make assumptions about the preferences of others.
Self-interest versus selfish
- If an individual has preferences and acts in accordance with these preferences, we call the individual
rational and self-interested.
- People pursue what they find important/ their preferences.
- Preferences can include empathy for others.
- Self-interest does not automatically mean selfish.
, Notes – Rational Choice Theory 2024
Thick versus thin
- Thin version of rationality:
- We do not make any assumptions about an individual’s goal.
- We only know that individuals have goals.
- Thick version of rationality:
- We make more explicit assumptions about the goals of individuals.
- The goal of politicians is to receive as many votes as possible.
Rational choice writing
- i is the term that denotes the individual.
- x , y , z denotes the preferences that an individual (i) has.
- x Pi y
- An individual prefers option x to y.
- Option x is better than y.
- P means > (greater than).
- x Ii y
- An individual is indifferent between option x and y.
- Option x is not preferred to y.
- Option y is not preferred to x.
- I means = (equal to).
- Examples:
- x Pi y P i z
- An individual prefers option x over y and y over z.
- x Ii y Ii z
- An individual is indifferent between the options x and y and between y and z.
- x Pi y I i z
- An individual prefers option x over y but is indifferent between the options y and z.
- An individual is rational if they make a choice between the outcomes that is in accord to their
preferences.
- They choose the outcome that is most preferred.
- A choice is rational if the object chosen is better as any other available object according to
the chooser’s preferences.
- A choice is rational if the object chosen is as good as any other available objects according
to the chooser’s preferences.
