![]() ![]() They also include other-regarding, altruistic, as well as normative or ideational goals. Duncan Snidal emphasises that the goals are not restricted to self-regarding, selfish, or material interests. One version of rationality is instrumental rationality, which involves achieving a goal using the most cost effective method without reflecting on the worthiness of that goal. ![]() The rational agent will then perform their own cost-benefit analysis using a variety of criterion to perform their self-determined best choice of action. Alternatively, transitivity is where the individual weakly prefers option A over B and weakly prefers option B over C, leading to the conclusion that the individual weakly prefers A over C. individual prefers A over B, B over A or are indifferent to both). Completeness refers to the individual being able to say which of the options they prefer (i.e. These preferences are assumed to be complete and transitive. The theory also assumes that individuals have preferences out of available choice alternatives. ![]() The basic premise of rational choice theory is that the decisions made by individual actors will collectively produce aggregate social behaviour. It is also used in political science, sociology, and philosophy. Rationality can be used as an assumption for the behaviour of individuals in a wide range of contexts outside of economics. Rational choice theory looks at three concepts: rational actors, self interest and the invisible hand. It also suggests that an individual's self-driven rational actions will help better the overall economy. The theory postulates that an individual will perform a cost-benefit analysis to determine whether an option is right for them. The theory originated in the eighteenth century and can be traced back to political economist and philosopher, Adam Smith. Rational choice theory refers to a set of guidelines that help understand economic and social behaviour. ![]()
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