The paper addresses the ‘rational choice only’ reconstruction, characterization, and interpretation of classical and neoclassical economics. It argues that such a reconstruction is inaccurate failing to do justice to the dual theoretical character of classical/neoclassical economics. The paper instead proposes and shows that the latter involves not only elements of ‘rational choice theory’ but also those of an alternative conception. It identifies various and important ideas, observations, and implications of irrational choice and action within classical/neoclassical (...) economics. One class of such ingredients involves forms, expressions, and cases—i.e. specification and classification—of irrational choices in the economy. Another class comprises the social and other factors—i.e. economic sociology or social economics—of irrational choices in the economy. The paper’s intended contribution is to help identify and clarify the extant sources and alternatives of rational choice theory in conventional economics.... (shrink)

Contemporary discussions of the positive relation between rational choice and moral theory are a special case of a much older tradition that seeks to show that mutual agreement upon certain moral rules works to the mutual advantage, or in the interests, of those who so agree. I make a few remarks about the history of discussions of the connection between morality and self-interest, after which I argue that the modern theory of rational choice can be naturally (...) understood as a continuation of this older tradition. I then go on to argue for a controversial three-fold thesis: (1) that grounding a theory of morality in terms of rational self-interest is the only epistemologically respectable way to proceed with the justification of moral principles; (2) that despite this, most of the contemporary explorations of rational choice foundations for moral principles do not work—that the models of rational choice to which they appeal yield less than the substantial results that they are intended to yield; but (3) that if one rethinks just what it means to be rational, one can find in fact a promising way to connect the two—specifically through the development of a theory of genuinely cooperative activity. (shrink)

Left freely to themselves, a group of rational individuals often fail to cooperate even when the product of social cooperation is beneficial to all. Hence, the author argues, a rule of collective decision making is clearly needed that specifies how social cooperation should be organised among contributing individuals. Suzumura gives a systematic presentation of the Arrovian impossibility theorems of social choice theory, so as to describe and enumerate the various factors that are responsible for the stability of the (...) voluntary association of free and rational individuals. Among other topics covered are an axiomatic characterisation of the concept of a rational choice, the simple majority decision rule and its extensions, the social choice implications of the concept of equity as nonenvy, the constrained majoritarian collective choice rules and the conflict between the Paretian ethics and the libertarian claims of individual rights. (shrink)

A theory of rational choice is a theory of how an agent should, rationally, go about deciding what actions to perform at any given time. For example, I may want to decide whether to go to a movie this evening or stay home and read a book. The actions between which we want to choose are perfectly ordinary actions, and the presumption is that to make such a decision we should attend to the likely consequences of our decision. (...) It is assumed that these decisions must be made in the face of uncertainty regarding both the agent’s initial situation and the consequences of his actions. (shrink)

In this essay, I review some results that suggest that rational choice theory has interesting things to say about the virtues. In particular, I argue that rational choice theory can show, first, the role of certain virtues in a game-theoretic analysis of norms. Secondly, that it is useful in the characterization of these virtues. Finally, I discuss how rational choice theory can be brought to bear upon the justification of these virtues by showing how (...) they contribute to a flourishing life. I do this by discussing one particular example of a norm - the requirement that agents to honor their promises of mutual assistance - and one particular virtue, trustworthiness. (shrink)

In order to vindicate rational-choice theory as a mode of explaining social patterns in general - social patterns beyond the narrow range of economic behaviour - we have to recognize the legitimacy of explaining the resilience of certain patterns of behaviour: that is, explaining, not necessarily why they emerged or have been sustained, but why they are robust and reliable. And once we allow the legitimacy of explaining resilience, then we can see how functionalist theory may also serve (...) us well in social science; we lose the basis - the empty black box argumenton which the rational-choice critique of the theory has mostly been grounded. (shrink)

Is it rational to be moral? How do rationality and morality fit together with being human? These questions are at the heart of David Schmidtz's exploration of the connections between rationality and morality. This inquiry leads into both metaethics and rational choice theory, as Schmidtz develops conceptions of what it is to be moral and what it is to be rational. He defends a fairly expansive conception of rational choice, considering how ends as well (...) as means can be rationally chosen and explaining the role of self-imposed constraints in a rational life plan. His moral theory is dualistic, ranging over social structure as well as personal conduct and building both individual and collective rationality into its rules of recognition for morals. To the "why be moral" question, Schmidtz responds that being moral is rational, but he does not assume we have reasons to be rational. Instead, Schmidtz argues that being moral is rational in a particular way and that beings like us in situations like ours have reasons to be rational in just that way. This approach allows him to identify decisive reasons to be moral; at the same time, it explains why immorality is as prevalent as it is. This book thus offers a set of interesting and realistic conclusions about how morality fits into the lives of humanly rational agents operating in an institutional context like our own. (shrink)

Counterexamples are constructed for the theory of rational choice that results from a direct application of classical decision theory to ordinary actions. These counterexamples turn on the fact that an agent may be unable to perform an action, and may even be unable to try to perform an action. An alternative theory of rational choice is proposed that evaluates actions using a more complex measure, and then it is shown that this is equivalent to applying classical (...) decision theory to "conditional policies" rather than ordinary actions. (shrink)

In a recent article, Gauthier rejects orthodox rational choice contractarianism in favor of a revisionist approach to the social contract that, according to him, justifies his principle of maximin proportionate gain as a principle of distributive justice. I agree with Gauthier that his principle of maximin proportionate gain cannot be justified by orthodox rational choice contractarianism. I argue, however, that orthodox rational choice contractarianism, before and after Gauthier, is still a viable approach to the (...) social contract, although the scope of this approach is limited. Orthodox rational choice contractarianism can be applied fruitfully to moral philosophy only in situations of deep moral pluralism in which moral reasoning is reduced to instrumental reasoning, because the members of society do not share, as assumed by traditional moral theories, a consensus on moral ideals as traditionally conceived as a starting point for the derivation of moral rules but only an overarching end that they aim to reach. If orthodox rational choice contractarianism is applied adequately, then it offers a viable approach to the social contract that, in contrast to Gauthier’s theory, justifies a rival principle for distributive conflicts that is valid for deeply morally pluralistic societies. (shrink)

_Pathologies of Rational Choice Theory_, a book written by Donald Green and Ian Shapiro and published in 1994, excited much controversy among political scientists and promoted a dialogue among them that was printed in a double issue of the journal Critical Review in 1995. This new book reproduces thirteen essays from the journal written by senior scholars in the field, along with an introduction by the editor of the journal, Jeffrey Friedman, and a rejoinder to the essays by (...) Green and Shapiro. The scholars—who include John Ferejohn, Morris P. Fiorina, Stanley Kelley, Jr., Robert E. Lane, Peter C. Ordeshook, Norman Schofield, and Kenneth A. Shepsle—criticize, agree with, or build on the issues raised by Green and Shapiros critique. Together the essays provide an interesting and accessible way of focusing on competing approaches to the study of politics and the social sciences. (shrink)

Is it rational to be moral? How do rationality and morality fit together with being human? These questions are at the heart of David Schmidtz's exploration of the connections between rationality and morality. This inquiry leads into both metaethics and rational choice theory, as Schmidtz develops conceptions of what it is to be moral and what it is to be rational. He defends a fairly expansive conception of rational choice, considering how ends as well (...) as means can be rationally chosen and explaining the role of self-imposed constraints in a rational life plan. His moral theory is dualistic, ranging over social structure as well as personal conduct and building both individual and collective rationality into its rules of recognition for morals. To the "why be moral" question, Schmidtz responds that being moral is rational, but he does not assume we have reasons to be rational. Instead, Schmidtz argues that being moral is rational in a particular way and that beings like us in situations like ours have reasons to be rational in just that way. This approach allows him to identify decisive reasons to be moral; at the same time, it explains why immorality is as prevalent as it is. This book thus offers a set of interesting and realistic conclusions about how morality fits into the lives of humanly rational agents operating in an institutional context like our own. (shrink)

The critics of rational choice theory (RCT) frequently build on the contrast between so-called thick and thin applications of RCT to argue that thin RCT lacks the potential to explain the choices of real-world agents. In this paper, I draw on often-cited RCT applications in several decision sciences to demonstrate that despite this prominent critique there are at least two different senses in which thin RCT can explain real-world agents’ choices. I then defend this thesis against the most (...) influential objections put forward by the critics of RCT. In doing so, I explicate the implications of my thesis for the ongoing philosophical debate concerning the explanatory potential of RCT and the comparative merits of widely endorsed accounts of explanation. (shrink)

While Rational Choice Theory (RC) may be understood as a theory of choice, which does not necessarily reflect actual deliberative processes, rule-following behavior is definitely based on a certain form of delibera- tion. This article aims at clarifying the relationship between the two. Being guided by instrumental rules, i.e., rules reducible to the maximiza- tion principle, is perfectly consistent with the fundamental behavioral assumptions of RC. But human individuals use other forms of rules in decision making, especially (...) tie-breaking rules and coordination rules. It is argued that within RC no satisfying account of such rule-following behav- ior can be given. In particular it is impossible to determine suitable pref- erence orderings such that coordinating may be understood as maximizing relative to these orderings. Still, once there is coordination, following a coordination rule may be perfectly consistent with the basic assumptions of RC. So there might be a more complex theory of action that incorpo- rates RC as well as a satisfying theory of rule-guided behavior. (shrink)

The article discusses some of the fundamental conceptual and theoretical aspects of rational choice and moral order. A distinction is drawn between constitutional interests and compliance interests, and it is argued that a viable moral order requires that the two interests somehow be brought into congruence. It is shown that with regard to the prospects for a spontaneous emergence of such congruence, a distinction between two kinds of moral rules which we call trust-rules and solidarity-rules is of crucial (...) importance. (shrink)

A nontechnical, concise, and rigorous introduction to the rational choice paradigm,focusing on basic insights applicable in fields ranging from economics to philosophy.

This book offers a rigorous, concise, and nontechnical introduction to some of the fundamental insights of rational choice theory. It draws on formal theories of microeconomics, decision making, games, and social choice, and on ideas developed in philosophy, psychology, and sociology. Itzhak Gilboa argues that economic theory has provided a set of powerful models and broad insights that have changed the way we think about everyday life. He focuses on basic insights of the rational choice (...) paradigm--the general conceptualization rather than a particular theory--that survive recent critiques of economic theory's various failures. Gilboa explains the main concepts in language accessible to the nonspecialist, offering a nonmathematical guide to some of the main ideas developed in economic theory in the second half of the twentieth century. Chapters cover feasibility and desirability, utility maximization, constrained optimization, expected utility, probability and statistics, aggregation of preferences, games and equilibria, free markets, and rationality and emotions. Online appendixes offer additional material, including a survey of relevant mathematical concepts. (shrink)

The rationalization of a choice function, in terms of assumptions that involve expansion or contraction properties of the feasible set, over non-finite sets is analyzed. Schwartz's results, stated in the finite case, are extended to this more general framework. Moreover, a characterization result when continuity conditions are imposed on the choice function, as well as on the binary relation that rationalizes it, is presented.

When acting in social contexts, we are often able to voluntarily coordinate our choices with one another. It has been suggested that this ability relies on the adoption of preferences that transcend those of the individuals involved in the social interaction. Conditional game theory provides a formal framework that facilitates the study of coordinated rational choice in a way that disentangles the concepts of individual preference and group agency. We argue that these concepts are complementary: individual preferences are (...) formed in a social context and groups coordinate as socially influenced preferences interact. In particular, we show that if agents can engage in conditional reasoning and can define their preferences in the form of hypothetical propositions, group-level coordination can be grounded only on the preference of individuals. (shrink)

In this chapter, it is described and assessed how political scientists use rational choice theories to offer causal explanations. We observe that the ways in which rational choice theories are considered to be successful in political science differs, depending on the explanandum in question. Political scientists use empirical variants of rational choice theories to explain the political behavior of individual agents and analytical variants to explain the behavior of collective actors. Both variants are used (...) for distinct explananda, which ask for different modes of explanation that raise in turn different explanatory demands toward rational choice theories. We argue that when political scientists discuss the explanatory usefulness of rational choice theories, they should assess them in light of the demands they are supposed to meet. This would enable a more nuanced and problem-oriented appraisal of rational choice theories in political science. (shrink)

In public political deliberation, people will err and lie in accordance with definite patterns. Such discourse failure results from behavior that is both instrumentally and epistemically rational. The deliberative practices of a liberal democracy cannot be improved so as to overcome the tendency for rational citizens to believe and say things at odds with reliable propositions of social science. The theory has several corollaries. One is that much contemporary political philosophy can be seen as an unsuccessful attempt to (...) vindicate, on symbolic and moral grounds, the forms that discourse failure take on in public political deliberation. Another is that deliberative practices cannot be rescued even on non-epistemic grounds, such as social peace, impartiality, participation, and equality. To alleviate discourse failure, this book proposes to reduce the scope of majoritarian politics and enlarge markets. (shrink)

Social identity poses one of the most important challenges to rational choice theory, but rational choice theorists do not hold a common position regarding identity. On one hand, externalist rational choice ignores the concept of identity or reduces it to revealed preferences. On the other hand, internalist rational choice considers identity as a key concept in explaining social action because it permits expressive motivations to be included in the models. However, internalist theorists (...) tend to reduce identity to desire—the desire of a person to express his or her social being. From an internalist point of view, that is, from a viewpoint in which not only desires but also beliefs play a key role in social explanations as mental entities, this article rejects externalist reductionism and proposes a redefinition of social identity as a net of beliefs about oneself, beliefs that are indexical, robust, and socially shaped. (shrink)

Although rational choice theory has enjoyed only modest predictive success, it provides a powerful explanatory mechanism for social processes involving strategic interaction among individuals and it stimulates interesting empirical inquiries. Rather than present competing theories to compare against rational choice, Don Green and Ian Shapiro have merely alluded to alternative explanatory variables such as culture, institutions, and social norms, without showing either how these factors can be incorporated into a more powerful theory, or how they are (...) inconsistent with rational choice theory. It is likely that any eventual theory of the origin and maintenance of social institutions, norms, and values will have to reserve a central place for rational action. (shrink)

In his recent paper, “Justice as Fairness: Political not Metaphysical,” John Rawls makes use of a footnote to disown what to many readers must have seemed one of the most striking and original underlying ideas of his theory of justice, that it “is a part, perhaps the most significant part, of the theory of rational choice.” That Rawls should issue this disclaimer indicates, at least in my view, that he has a much clearer understanding of his theory, and (...) its relationship to rational choice than he did at the time that he wrote A Theory of Justice. As I note in Morals by Agreement, Rawls does not show that principles of justice are principles of rational choice. Hence, in appropriating the idea, I can claim diat I am undertaking a pioneering enterprise. No doubt Thomas Hobbes would have undertaken it had the resources of the theory of rational choice been at his disposal, but I do not intend to pursue counterfactuals in a search for historical antecedents. Moral theory as rational choice theory is, I claim, a new venture. (shrink)

Following Amartya Sen’s insistence to expand the framework of rational choice theory by taking into account ‘non-utility information,’ economists, political scientists and philosophers have recently concentrated their efforts in analysing the issues related to rights, freedom, diversity intentions and equality. Thomas Boylan and Ruvin Gekker have gathered essays that reflect this trend. The particular themes addressed in this volume include: the measurement of diversity and freedom, formal analysis of individual rights and intentions, judgment aggregation under constraints and strategic (...) manipulation in fuzzy environments. Some papers in the volume also deal with philosophical aspects of normative social choice. (shrink)

Following Amartya Sen’s insistence to expand the framework of rational choice theory by taking into account ‘non-utility information,’ economists, political scientists and philosophers have recently concentrated their efforts in analysing the issues related to rights, freedom, diversity intentions and equality. Thomas Boylan and Ruvin Gekker have gathered essays that reflect this trend. The particular themes addressed in this volume include: the measurement of diversity and freedom, formal analysis of individual rights and intentions, judgment aggregation under constraints and strategic (...) manipulation in fuzzy environments. Some papers in the volume also deal with philosophical aspects of normative social choice. (shrink)

Following Amartya Sen’s insistence to expand the framework of rational choice theory by taking into account ‘non-utility information,’ economists, political scientists and philosophers have recently concentrated their efforts in analysing the issues related to rights, freedom, diversity intentions and equality. Thomas Boylan and Ruvin Gekker have gathered essays that reflect this trend. The particular themes addressed in this volume include: the measurement of diversity and freedom, formal analysis of individual rights and intentions, judgment aggregation under constraints and strategic (...) manipulation in fuzzy environments. Some papers in the volume also deal with philosophical aspects of normative social choice. (shrink)

Can rational choice theory justify hope and patience in dealing with calamities such as financial collapse or terminal illness? The Book of Job is a good entry-point. Three friends of Job counsel him to avoid hopelessness and bitterness arising from frustration regarding calamities. They do so on non-rational grounds. They argue that Job should ignore the evidence and instead blindly uphold the belief ‘God is just.’ However, such blindness permits magic, superstitions, and cultish beliefs. The specter of (...) such beliefs is probably what prompted the fourth friend, Elihu, to dismiss the arguments of the three friends. Elihu reasons that one should be rational, i.e., acknowledge the evidence. This need not entail the conclusion ‘God is unjust’ – as God cannot perform miracles on a daily basis. That is, given the evidence, one cannot sustain hopeful beliefs that God will interfere and reverse the course of natural catastrophes and shocks from which humans, as well as other living beings, suffer. One at best can be patient, accept suffering considering worse counterfactuals. Based on Elihu’s critique of the arguments of the three friends, and building on Maimonides’s interpretation, this paper concludes that standard rational choice theory can explain patience, but not hope. (shrink)

If A is better than B and B is better than C, then A is better than C, right? Larry Temkin and Stuart Rachels say: No! Betterness is nontransitive, they claim. In this paper, I discuss the central type of argument advanced by Temkin and Rachels for this radical idea, and argue that, given this view very likely has sceptical implications for practical reason, we would do well to identify alternative responses. I propose one such response, which employs the idea (...) that rational agents might regard some options as incommensurate in value, and will reasonably employ a heuristic of status quo maintenance to avoid suboptimal choices from incommensurate goods. (shrink)

This paper identifies the major failings of mainstream economics and the rational choice theory it relies upon. These failures were identified by the four figures mentioned in the title: economics treats agents as rational fools; by the time the long … More ›.

Sometimes we make decisions which affect our lives at times when we will hold values that are different from our values at the time the decision is made. What is the reasonable way to make such a choice? Some think we should accept a requirement of temporal neutrality and take both sets of values into account, others think we should decide on the strength of our present values, yet others think that in evaluating what will happen at that other (...) time we should use the values that we will endorse at that time instead of our present values. These views see the problem as one about finding some attitude towards time itself that is distinctively rational. This article argues that these views are subject to serious objections. It suggests that instead we should think in terms of well-being. If a person approves of, or positively responds to, the way their life is going they will experience more well-being than if there is no positive response. The article explores the implications of a positive response condition on well-being for deciding what it is rational to do in cases involving changing goals. (shrink)

J. Howard Sobel has long been recognized as an important figure in philosophical discussions of rational decision. He has done much to help formulate the concept of causal decision theory. In this volume of essays Sobel explores the Bayesian idea that rational actions maximize expected values, where an action's expected value is a weighted average of its agent's values for its possible total outcomes. Newcomb's Problem and The Prisoner's Dilemma are discussed, and Allais-type puzzles are viewed from the (...) perspective of causal world Bayesianism. The author establishes principles for distinguishing options in decision problems, and studies ways in which perfectly rational causal maximizers can be capable of resolute choices. Sobel also views critically Gauthier's revisionist ideas about maximizing rationality. This collection will be a desideratum for anyone working in the field of rational choice theory, whether in philosophy, economics, political science, psychology or statistics. Howard Sobel's work in decision theory is certainly among the most important, interesting and challenging that is being done by philosophers. (shrink)

Rational choice theories have been falsified by experimental tests of economic behavior and have not been supported by analyses of behavior in the market. Politics is an even less fertile field of application for rational choice theories because politics deals with ends as well as means, thus preventing ends?means rationality; voters have partisan loyalties often ?fixed? in adolescence; political benefits have no common unit of measurement; ?rational ignorance? inhibits rational choices; and there is no (...) market?like feedback to facilitate learning. Research comparing public and private efficiency does not support rational choice. Ironically, while law and business schools are now employing better microeconomic theories, political scientists are taking up rational choice theory, regardless of the disconfirming evidence. (shrink)

The paper draws on a conceptual analysis of justice in discussing the power of rational choice justifications of conceptions of justice. It is argued that the concept of justice can be reduced to two independent moral dimensions. From this conceptual thesis a simple conceptional criterion is derived which any powerful theory of justice must satisfy. An attempt is made to use this fundamental criterion in evaluating a wide variety of rational choice theories of justice. It is (...) shown that there is but one variant of the rational choice approach which in substantiating principles of justice does not violate this criterion. (shrink)

The rational choice paradigm has proved to be a fruitful means of analysis and explanation in various disciplines concerned with questions of practical rationality, but in various attempts to extend its fields of application the deficiencies of the original account of rational choice have become evident. This paper tries to give a systematic overview of ways in which the rational choice paradigm can be extended and modified.

Habermas has argued that many of the endemic socio- economic problems of Western society are either symptoms or prod ucts of a 'lopsided' process of cultural rationalization, one that has emphasized instrumental forms of rationality over communicative. But other than presenting a rather general typology of lifeworld pathologies, Habermas has not done much to specify what these problems might be, nor has he provided any 'middle-range' analysis of the mechanisms through which they might be generated. This paper discusses some of (...) the ways in which, consistent with Haber mas's general framework, rational choice theory can be used for pre cisely this task. In this analysis, rational choice theory is not presented as a comprehensive theory of action, but is employed as a critical- diagnostic tool that allows the theorist to identify undesirable social interaction patterns that arise from a broader instrumentalization of the lifeworld. Key Words: critical theory • Habermas • instrumental rationality • market failure • rational choice theory. (shrink)

An agent often does not have precise probabilities or utilities to guide resolution of a decision problem. I advance a principle of rationality for making decisions in such cases. To begin, I represent the doxastic and conative state of an agent with a set of pairs of a probability assignment and a utility assignment. Then I support a decision principle that allows any act that maximizes expected utility according to some pair of assignments in the set. Assuming that computation of (...) an option's expected utility uses comprehensive possible outcomes that include the option's risk, no consideration supports a stricter requirement. (shrink)

Politics, Philosophy & Economics, Volume 21, Issue 4, Page 347-371, November 2022. We sometimes have to choose between options that are seemingly incomparable insofar as they seem to be neither better than, worse than, nor equal to each other. This often happens when the available options are quite different from one another. For instance, consider a choice between prioritizing either criminal justice reform or healthcare reform as a public policy goal. Even after the relevant details of the goals and (...) possible reforms are filled in, it is plausible that neither goal is better than, worse than, nor equal to the other. Such seemingly incomparable options present a problem for rational choice since it is unclear how an agent might rationally choose between them. What we need are some principles to help govern rational choice when faced with seemingly incomparable options. I here present three such principles. While each principle is individually compelling, I show that they are jointly incompatible. I then argue that the correct response to this inconsistent triad is to reject the principle that rationally censures performing a sequence of choices one knows will result in a suboptimal outcome. The upshot is that when seeming incomparability is involved, an agent can money pump themselves without being less rational for it. (shrink)

According to rational choice theory casework is a rational form of political participation for both voter and Member of Parliament. It increases the voter's chance to a redress of grievance and it is an important means for MPs to maximize their votes, which parliamentary activities fail to contribute to. Though rational for individual actors, casework is far from optimal for society as a whole. Disregarding isolated cases, casework does not constitute an important source of inspiration for (...) legislative and oversight activities. A written survey among 101 Flemish MPs tends to show that a collective solution for grievances in great demand is not pursued, as casework seems electorally and personally so much more rewarding. A cure for casework cannot befound, unless it ends this structural attractiveness of constituency service. Disregarding its rationality in isolated cases, casework, because it does not result in collective measures, seems to be a meager substitute for political participation. (shrink)

What, normatively speaking, are the grounds of rational choice? This paper defends ‘comparativism’, the view that a comparative fact grounds rational choice. It examines three of the most serious challenges to comparativism: 1) that sometimes what grounds rational choice is an exclusionary-type relation among alternatives; 2) that an absolute fact such as that it’s your duty or conforms to the Categorial Imperative grounds rational choice; and 3) that rational choice between (...) incomparables is possible, and in particular, all that is needed for the possibility of rational choice is that one alternative is not worse than the others. Each challenge is questioned. If comparativism is correct, then no matter what normative theory you favor, your answer to the question, ‘What makes my choice rational?’ must be comparative in form. In this way, comparativism provides a framework for normative theorizing. (shrink)

ABSTRACTIlya Somin's Democracy and Political Ignorance uses a by-now familiar rational-choice lens with which to explain and analyze Americans’ widespread political ignorance. Unlike some scholars who tout rational choice on purely predictive or heuristic grounds, Somin claims that it also offers a more accurate description of reality, in this case better explaining the findings of empirical public-opinion research. In this essay, I compare Somin's central concept of rational ignorance and the related concept of “rational (...) irrationality” with the earlier explanatory approach taken by Austrian economist Joseph Schumpeter in his classic study, Capitalism, Socialism and Democracy. While Schumpeter developed his description of the mass democratic citizenry over 70 years ago—prior to any of the significant empirical studies of American public opinion—its broad approach remains at least as persuasive as Somin's. (shrink)

The descriptive viewpoint in rational choice has generated an important Standard Rational Choice Theory revision. This viewpoint has meant the introduction of relevant psychological considerations that Rational Choice Theory tied to the neoclassical economics is unable to heed In this paper I suggest a way to expand the descriptive viewpoint by theorizing how some factors, coming from the social and cultural environment, operate within rational choice. That troublesome issue concerning the overall validity (...) of economic laws is also a question here; specifically, if these descriptive proposals expand the explanation of the disturbing causes of economic laws, or if they actually call into question their fundamental principles, encouraging consideration of some economic issues in a quite new, different manner. (shrink)

The purpose of rational choice is to provide a grand theoretical framework for designing human institutions. Once theoretical work had shown how markets optimally aggregated preferences, attempts were made to extend the theory from markets to politics. Attempts by Downs and Olson to describe elections and collective action produced relatively poor predictions, but impelled game theorists to generalize preference?based theories to include belief formation. A consequence of this change is that the theory is no longer purely axiomatic, but (...) draws on insights about human behavior from other disciplines and empirical analysis of the role institutions play in determining beliefs. (shrink)

Critics fault rational choice theory for dubious assumptions and limited explanatory power. The aims of rational choice are, however, as much normative as explanatory, and I argue that an abiding concern of political thought—the wrong of exploitation—gives moral weight to some of the more substantive assumptions underlying many rational choice prescriptions.

The paper argues that the philosophical underpinnings of rational choice theory are vitiated by consideration of the phenomenon of backward-looking motives, such as gratitude, fidelity, and many forms of honesty. Attempts to describe the actions and decisions of those acting from such motives in the terms of rational choice theory fail, and the model of human conduct which is implicit in the theory is both inadequate in itself and pernicious in its general influence. A picture may (...) emerge of the human person as a repository of atomistic ‘experiences’, inhabiting a present from the vantage-point of which his relations to past and future ‘selves’ are contingent, and his responsibilities and commitments correspondingly fluid. And in economics, a supposedly ‘neutral’ account of rational choice in fact encourages and sustains a simple-minded utilitarian ethic. (shrink)

In their survey of empirical research based on rational choice theory, Don Green and Ian Shapiro point to a list of methodological deficiencies or ?pathologies.? The main problem with Green and Shapiro's list lies in the standards they use to evaluate the achievements of rational choice theory. These standards are derived from a view of empirical research that is deeply questionable and, in the stated form, inconsistent with both standard insights in contemporary philosophy of science and (...) the established practice in the most successful empirical sciences. (shrink)