Rational-Choice Theory

Question 1

Basic assumption

Answer 1

All individuals have the rational capacity, time and emotional detachment necessary to choose a best course of action for their self-interest
- individuals are rational beings seeking to maximize their material self-interest, without much in consideration to the consequences for others

Question 2

Methodological individualism

Answer 2

The basis of explanations of social events should be built upwards from the goals of individuals
- they way to study politics then is to examine political behaviour of individuals
It aims to question a key traditional argument in political science: unrestrained pursuit of self-interest leads to chaos, so you need a state to maintain order (Thomas Hobbes)

Question 3

Political Inquiry

Answer 3

Should focus on the self-interest rationality of individuals in order to explain events and create incentive predict possible outcome out of policy

Question 4

Homo Economicus

Answer 4

Individuals are rational beings seeking to maximize their material self-interest, without much in consideration to the consequences for others

•William H. Riker and Peter C. Ordeshook ‘… we assume actors in society seek to attain their purposes. Persistence in this search, or “goal-directed behavior” to use the current jargon, is the substance of rationality’ (1973, 10).
•Anthony Downs (1957) ‘ From the self-interest axiom springs our view of what motivates the political actions of party members. We assume that they act solely in order to attain the income, prestige, and power which comes from being in office’ (1957, 27).
•William H. Riker ‘Politically rational man is the man who would rather win than lose, regardless of the particular stakes’ (1962, 22).
•James Buchanan ‘public choice models . . . embody the presumption that persons seek to maximize their own utilities, and that their own narrowly defined economic well-being is an important component of these utilities.’ (1984, 13)
•Morris Fiorina ‘I assume that most people most of the time act in their own self-interest.’ (1989, 37)

Question 5

What about collective action

Answer 5

If we only care for our own self-interest, then how do we explain collective action by environmentalists or student groups

Rational choice theorist Mancur Olson, tried to explain collective action (1965).
•A collective benefit requires that individuals are ready to engage into costly action for the benefit of all.
•Individuals, however, can assume their participation add little to the outcome. As they might further contemplate their particular loss individuals loss, individuals might not be engage at all.
➢Collection actions can only occurs in small groups.
•If collective action occurs based on large groups, self-interest maximizers members will tend to stay at home(a free-rider).
•‘Free-riding’ problem: Rational actors have an self-interest incentive to be less engaged in a collective action, though receiving similar benefits of its outcome. One ought to create ways to limit the possibility of ‘free-riders’.
•For example: In a protest against high tuition fee, many students will not show up, assuming they will benefit of any possible outcome

Question 6

Prisoner’s Dilemma

Answer 6

A game theory that shows two individuals will not cooperate with another in order to rationally maximize their self-interest, even though it would be in their best interest to do so.
By both going after their own self-interest, both have reached an equilibrium (Nash equilibrium)
- there is no chaos of trying to maximize one’s self interest

Question 7

Rational actions can self-inflect collective harm

Answer 7

• ‘the tragedy of the commons’ (Hardin 1968)
• using commonly owned areas (such as fish from the ocean, air etc.) to satisfy rational self-interest can lead towards depletion of fish to al
  For example:
  1. The collapse of Cod fishery industry in Atlantic Canada 1992
• main reason: due to massive amount of overfishing from 1960s onwards
  2. Depletion of Ozone layer, by our personal emission of CO2, is creating climate change to all.

Question 8

Using rational theory to create policy: put up incentives and targets:

Answer 8

•Individuals (and States) are always looking after their own self interest.
•One can, then, predict how they will react by providing incentives to their perceived economy benefits.
•One can create system of management(in health care, school, police, etc) by setting targets and incentives.

Question 9

Limitations of Rational - Choice theory

Answer 9

•Rationality, time and emotional detachment not always present.
•Is self-interest innate or socially constructed? It assumes human nature and what motivates individuals.
•Rational-choice theory disregard altruism a valid social component.
•It disregards how Social Structures can affect decisions taken by individuals.