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Rational Choice Theory

Sociologyindex, Sociology Books 2012, Rational Choice Theory, Structuralism, Exchange Theory

Rational choice theory is an empirical theory of human behavior. Rational choice theory is also known as rational action theory. The 'rationality' in rational choice theory is different from the colloquial meaning of rationality.

Most empirical applications of rational choice employ a typical value assumption—that actors are motivated to pursue private and instrumental goods. When is this typical value assumption warranted, and when is it not?

The Empirical Content of Rational Choice Theory - A Reply to Green and Shapiro
Gary W. Cox - Journal of Theoretical Politics, Vol. 11, No. 2, 147-169 (1999)
Green and Shapiro have argued that rational choice theory has produced virtually no new propositions about politics that have been carefully tested and not found wanting; and that an empirically successful rational choice theory would be no more universal than the middle-level theories that they advocate. In this essay I argue four main points. First, Pathologies of Rational Choice Analysis was much better designed to illustrate methodological failings than to sustain a global claim that rational choice theory has made no empirical contributions. Second, there is empirically confirmed content specific to rational choice theory, enough to make it the vital and exciting research program that it is. Third, there is a sense in which rational choice is more universal than its predecessors. Fourth, to provide a full evaluation of the scientific value of any theory one needs to consider both theoretical and empirical success.

Macro-sociology, Rational Choice Theory, and Time - A Theoretical Perspective on the Empirical Analysis of Social Processes - Hans-Peter Blossfeld, Institut für Emprischc und Angewandle Soziologie (EMPAS), University of Bremen Germany
European Sociological Review 12:181-206 1996 © 1996 Oxford University Press
During the last two decades, there has been an explosion of rational choice scholarship in the social sciences. The purpose of the first part of this paper is to discuss some of the reasons why this development has had surprisingly little influence on large-scale data analysis. In the second part, the paper shows that any theoretically powerful sociological analysis of a macro-sociological problem must pay attention to both structural and micro-level issues. However, not in the usual static way. Any macro-micro framework must recognize that time matters in this relationship. It must identify the particular historical structures and processes which dominate the changes occurring in a given population and it has to specify the causal mechanisms that allow us to trace the encounters of intentionally acting individuals with the flow of history as a series of choice processes.

A response to the critique of rational choice theory: Lakatos' and Laudan's conceptions applied - Kaisa Herne a; Maija Setl a - Inquiry, Volume 47, Issue 1 February 2004
Abstract: This paper analyzes the main features of rational choice theory and evaluates it with respect to the conceptions of Lakatos' research program and Laudan's research tradition. The analysis reveals that the thin rationality assumption, the axiomatic method and the reduction to the micro level are the only features shared by all rational choice models. On these grounds, it is argued that rational choice theory cannot be characterized as a research program. This is due to the fact that the thin rationality assumption cannot be understood as a hard core in Lakatos' terms. It is argued that Laudan's conception of a research tradition better characterizes rational choice theory. On the basis of this conclusion, certain important criticisms of rational choice theory are answered. First, the criticisms concerning the core assumptions of rational choice theory are countered. It is argued that this critique is based on a misunderstanding of rational choice theory as a unified set of models, such as Lakatos' research program. Second, Green and Shapiro's rational choice 'pathologies' - inconsistent predictions, post hoc theory development and arbitrary domain restrictions - are evaluated. Contrary to Green and Shapiro, it is argued that post hoc theory development is a more preferable strategy for developing RCT than domain restrictions based on ex ante rules.

The Role of Values in Rational Choice Theory - MICHAEL HECHTER, University of Arizona
Rationality and Society, Vol. 6, No. 3, 318-333 (1994)
Most empirical applications of rational choice employ a typical value assumption—that actors are motivated to pursue private and instrumental goods. When is this typical value assumption warranted, and when is it not? This article proposes guidelines for thinking about the use of value assumptions in rational choice theory. When instrumental and immanent values are substitutable, use of the typical value assumption is justifiable. However, in cases where there is imperfect substitutability—in which actors face production constraints, significant role conflict, or in which immanent values are nonrandomly distributed—the typical value assumption should be reexamined.

How to model a rational choice theory of criminal action? Subjective expected utilities, norms, and interactions - Mehlkop, Guido. and Graeff, Peter
Paper presented at the annual meeting of the American Sociological Association.
Abstract: With reference to the classic modelling of criminal behaviour in Rational Choice Theory (e.g. Becker 1968), this paper presents an extended Subjective Expected Utility model for the explanation of criminality that is more in line with the requirements of theorizing and empirical testing than former approaches. In our model, the decision of an actor is influenced by the expected utility of the crime and the norms which prohibit the delinquent action. It is also suggested that there is an inter-action between utility and norms which reflect different pattern of decision making that lead to different probabilities for the occurrence of crimes. The relevance of the model is shown by using survey data from Germany. By applying a new technique to uncover interaction effects in nonlinear models, different decision pattern are revealed. On the one hand, it is likely that norms restrict criminal behaviour by sup-pressing cost-benefit calculations. On the other hand, it is also possible that the influence of norms is absorbed by cost-benefit calculations.

Why Rational Choice Theory Requires a Multilevel Constitutional Approach to International Economic Law - The Case for Reforming the WTO's Enforcement Mechanism
Ernst-Ulrich Petersmann, European University Institute, U. of St. Gallen Law & Economics Working Paper No. 2007-19, University of Illinois Law Review, 2008
Abstract: This contribution argues that power-oriented, intergovernmental approaches to international economic law problems (e.g. trade sanctions in response to WTO violations) may offer less efficient and legally less effective instruments than citizen-oriented approaches (e.g. private judicial remedies in domestic courts in response to certain WTO violations). Realism, liberalism, institutionalism and constitutionalism offer complementary rather than mutually exclusive analytical approaches and policy strategies. One-sidedly power-oriented international law doctrines (as applied by Prof. Nzelibe) may lead to wrong policy conclusions; from a constitutional perspective, for instance, there are strong arguments in favor of reforming the WTO's enforcement mechanisms so as to better protect consumer welfare and other general citizen interests in open markets and judicial protection of rule of law.

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