It has been suggested that this article be merged into Decision theory. (Discuss) Proposed since April 2024.
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)
This article includes a list of references, related reading, or external links, but its sources remain unclear because it lacks inline citations. Please help improve this article by introducing more precise citations.(April 2024) (Learn how and when to remove this message)
This article may need to be rewritten to comply with Wikipedia's quality standards. You can help. The talk page may contain suggestions.(April 2024)
This article's lead section may be too short to adequately summarize the key points. Please consider expanding the lead to provide an accessible overview of all important aspects of the article.(April 2024)
(Learn how and when to remove this message)
This article is about a theory of economics. For rational choice theory as applied to criminology, see Rational choice theory (criminology). For rational choice theory as applied to international relations, see Rationalism (international relations).
Part of a series on
Economics
History
Outline
Index
Branches and classifications
Applied
Econometrics
Heterodox
International
Micro / Macro
Mainstream
Mathematical
Methodology
Political
JEL classification codes
Concepts, theory and techniques
Economic systems
Economic growth
Market
National accounting
Experimental economics
Computational economics
Game theory
Operations research
Middle income trap
Industrial complex
By application
Agricultural
Behavioral
Business
Cultural
Demographic
Development
Digitization
Ecological
Education
Engineering
Environmental
Evolutionary
Expeditionary
Feminist
Financial
Geographical
Happiness
Health
Historical
Humanistic
Industrial organization
Information
Institutional
Knowledge
Labour
Law
Managerial
Monetary
Natural resource
Organizational
Participation
Personnel
Planning
Policy
Public
Public choice / Social choice theory
Regional
Rural
Service
Socio
Sociological
Solidarity
Statistics
Urban
Welfare
Notable economists
de Mandeville
Quesnay
Smith
Malthus
Say
Ricardo
von Thünen
List
Bastiat
Cournot
Mill
Gossen
Marx
Walras
Jevons
George
Menger
Marshall
Edgeworth
Clark
Pareto
von Böhm-Bawerk
von Wieser
Veblen
Fisher
Pigou
Heckscher
von Mises
Schumpeter
Keynes
Knight
Polanyi
Frisch
Sraffa
Myrdal
Hayek
Kalecki
Röpke
Kuznets
Tinbergen
Robinson
von Neumann
Hicks
Lange
Leontief
Galbraith
Koopmans
Schumacher
Friedman
Samuelson
Simon
Buchanan
Arrow
Baumol
Solow
Rothbard
Greenspan
Sowell
Becker
Ostrom
Sen
Lucas
Stiglitz
Thaler
Hoppe
Krugman
Piketty
more
Lists
Glossary
Economists
Publications (journals)
Schools
Business portal
Money portal
v
t
e
Rational choice theory refers to a set of guidelines that help understand economic and social behaviour.[1] The theory originated in the eighteenth century and can be traced back to the political economist and philosopher Adam Smith.[2] The theory postulates that an individual will perform a cost–benefit analysis to determine whether an option is right for them.[3] It also suggests that an individual's self-driven rational actions will help better the overall economy. Rational choice theory looks at three concepts: rational actors, self interest and the invisible hand.[4]
Rationality can be used as an assumption for the behaviour of individuals in a wide range of contexts outside of economics. It is also used in political science,[5] sociology,[6] and philosophy.[7]
^Lawrence E. Blume and David Easley (2008). "[Rationality]," The New Palgrave Dictionary of Economics, 2nd Edition. http://www.dictionaryofeconomics.com/article?id=pde2008_R000277&q Abstract." by Abstract & pre-publication copy. Amartya Sen (2008). "Rational Behaviour," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
^Boudon, Raymond (August 2003). "Beyond Rational Choice Theory". Annual Review of Sociology. 29 (1): 1–21. doi:10.1146/annurev.soc.29.010202.100213. ISSN 0360-0572.
^Gary Browning, Abigail Halcli, Frank Webster (2000). Understanding Contemporary Society: Theories of the Present, London: SAGE Publications.
^Levin, J. and Milgrom, P., 2004. Introduction to choice theory. Available from internet: http://web. stanford. edu/~ jdlevin/Econ, 20202
^Susanne Lohmann (2008). "Rational Choice and Political Science," The New Palgrave Dictionary of Economics, 2nd Edition.Abstract.
^Peter Hedström and Charlotta Stern (2008). "Rational Choice and Sociology," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
^Taliaferro, Charles (2013). Rationality (Philosophical). Springer Netherlands. pp. 1947–1950. doi:10.1007/978-1-4020-8265-8_1549. ISBN 978-1-4020-8264-1. Retrieved 9 January 2024. {{cite book}}: |website= ignored (help)
and 26 Related for: Rational choice theory information
Rationalchoicetheory refers to a set of guidelines that help understand economic and social behaviour. The theory originated in the eighteenth century...
reducing crime. One of the main differences between this theory and Bentham's rationalchoicetheory, which had been abandoned in criminology, is that if...
as "rational" entities, as in rationalchoicetheory or Downs' political agency model. The concept of bounded rationality complements "rationality as optimization"...
accounting for theories of pragmatism (Mead, Cooley) and micro-level structure (Simmel). Likewise, utilitarianism (aka "rationalchoice" or "social exchange")...
Rationalchoice institutionalism (RCI) is a theoretical approach to the study of institutions arguing that actors use institutions to maximize their utility...
decision making in legal decisions and procedures, as well as in rationalchoicetheory. In particular, he argues that the American legal system's deeply...
influences on decision-making. Emotional choicetheory is considered an alternative model to rationalchoicetheory and constructivist perspectives. Markwica...
Rational egoism (also called rational selfishness) is the principle that an action is rational if and only if it maximizes one's self-interest. As such...
January 2000). "It It Rational to Assume Consumer Rationality? Some Consumer Psychological Perspectives on RationalChoiceTheory". Roger Williams University...
models on these economic assumptions. In the 20th century, the rationalchoicetheory of Lionel Robbins came to dominate mainstream economics. The term...
Public choice, or public choicetheory, is "the use of economic tools to deal with traditional problems of political science." Its content includes the...
this theory is that the compensation is what controls the choice, or in other words the choices which the "rational actors" make are "rational in the...
Decision theory (or the theory of choice) is a branch of applied probability theory and analytic philosophy concerned with the theory of making decisions...
matrix between returns. Modern portfolio theory is inconsistent with main axioms of rationalchoicetheory, most notably with monotonicity axiom, stating...
decisions that appear rational (to the offenders at least) to engage in specific criminal acts. The immediate roots of rationalchoicetheory are routine activity...
studies are investigating the role of rationality in player's decision making. Applying rationalchoicetheory to public goods games offers benefits in...
occurrence of crime. Routine activity theory has its foundation in human ecology and rationalchoicetheory. Over time, the theory has been extensively employed...
sciences such as economics and psychology, rational choicetheory, maintains that practical rationality consists in making decisions in accordance with some...
production. This approach has often been justified by appealing to rationalchoicetheory. Neoclassical economics historically dominated microeconomics and...
Social choicetheory or social choice is a branch of economics that analyzes mechanisms and procedures for collective decisions. Social choice incorporates...
formulated the concept within a novel approach to rationality, which posits that rationalchoicetheory is an unrealistic description of human decision...
and firms behave rationally is subject to debate. Economists often assume the models of rationalchoicetheory and bounded rationality to formalize and...
actions. These actions can be described by RationalChoiceTheory, where individuals make decisions based on rational preferences which are aligned with their...
Global Information
