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)

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)

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)

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)

Describes and evaluates a number of existing criticisms of the formal theory of rationality and subjective expected utility theory. The author argues that rationality is not a behavioural entity, but rather has to do with the relation between an agent's preferences and his or her behaviour.

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)

Shortly before his death in 1988, Max Black brought together for this collection previously published major essays on ten intriguing questions concerning ordinary language, rational choice, and literature. Individual chapters explore such fundamental problems as the puzzles posed by meaning and verification; what metaphor is and how metaphors work; the ambiguities and limits of rationality; the usefulness of decision theory to people who wish to make intelligent choices; some questions concerning Bayesian decision theory; the task of demystifying space; (...) and the radical ambiguity of poetry. (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)

David Gauthier's Morals by Agreement is the most complete and suggestive contractarian theory of morality since the work of Rawls. In this anthology a number of prominent moral and political philosophers offer a critical assessment of Gauthier's theory and its three main projects: developing a contractarian foundation for morality, defending a theory of rational choice, and supporting the claim that rationality requires one to keep one's agreements. An introduction sets out Gauthier's project, while Gauthier himself has the last (...) word, responding to the critiques. This collection will interest moral and political philosophers, social theorists, and specialists in the philosophy and theory of law as well as management sciences. (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)

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)

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

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)

Since its inauguration in 1932, the Whitney Biennial has fostered contemporary artistic innovation and diversity, becoming a highly anticipated event in the art world. The 2010 Biennial is curated by Francesco Bonami and Gary Carrion-Murayari and features works by approximately 55 artists working in a variety of media and practices. Uniquely, this catalogue serves as both a handsome accompaniment to the 2010 exhibition and an insightful exploration of the significance of this acclaimed and often controversial event throughout its history. In (...) addition to presenting full-colour reproductions of the selected artists' recent work, the curators have prepared a joint essay on the 2010 exhibition, and a group of writers contributed brief entries on the represented artists' techniques, influences and recent work. Exhibition: Whitney Museum of American Art, 25 February - 30 May 2010. (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)

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)

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)

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)

This book discusses how rational choice theory grew out of RAND's work for the US Air Force. It concentrates on the work of William J. Riker, Kenneth J. Arrow, James M. Buchanan, Russel Hardin, and John Rawls. It argues that within the context of the US Cold War with its intensive anti-communist and anti-collectivist sentiment, the foundations of capitalist democracy were grounded in the hyper individualist theory of non-cooperative games.

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)

The “ultimate objective” of this book, says David Schmidtz, “is to examine the degree to which being moral is co-extensive with being rational”. For Schmidtz, an “end” gives us a reason for action provided that its pursuit is not undercut by some other end. Morality has a two-part structure. A person’s goal is “moral” if “pursuing it helps [her] to develop in a reflectively rational way,” provided its pursuit does not violate “interpersonal moral constraints”. Interpersonal constraints are imposed (...) by “collectively rational” social institutions, institutions that “make people in general better off by nonexploitative means”. Schmidtz’s view is a form of “actualism.” Our reasons are given by our actual goals, subject to the qualification mentioned above, and moral constraints are given by actually existing collectively rational institutions. Schmidtz concedes that this framework cannot guarantee that it is rational for every agent to be moral, and he concedes that his moral theory might be incomplete. Nevertheless, he argues, “morality and rationality make room for each other in a variety of ways”. (shrink)

Authoritative rational choice theorists continue to argue that wide variants of rational choice theory should be regarded as the best starting-point to formulate theoretical hypotheses on the micro foundations of complex macro-level social dynamics. Building on recent writings on neo-classical rational choice theory, on behavioral economics and on cognitive psychology, the present article challenges this view and argues that: neo-classical rational choice theory is an astonishingly malleable and powerful analytical device whose descriptive (...) accuracy is nevertheless limited to a very specific class of choice settings; the ‘wide’ sociological rational choice theory does not add anything original to the neo-classical framework on a conceptual level and it is also methodologically weaker; at least four alternative action-oriented approaches that reject portrayal of actors as computational devices operating over probability distributions can be used to design sociological explanations that are descriptively accurate at the micro level. (shrink)

If the unexamined life is not worth living, then we should cast the light of reason upon it. That is an old idea. It has lately been given a new direction by hope that the theory of rational choice can shed a suitable light.

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 reconsiders the generalization of neoclassical economics by modern rational choice theory. Hence, it reexamines the possible theoretical grounds or lack thereof within neoclassical economics for economic imperialism implied in much of rational choice theory. Some indicative instances of rational choice theory's generalization of neoclassical economics are reviewed. The main portion of the article addresses the question as to whether neoclassical economics allows its generalization in rational choice theory and thus legitimizes (...) economic imperialism. Presented are a number of pertinent theoretical reasons why neoclassical economics does not fully justify its generalization into rational choice as a general social theory, particularly into an overarching economic approach to social action and society. Also discussed are some theoretical implications of the rational choice generalization of neoclassical economics. The main contribution of the article is to detect lack of a strong theoretical rationale in much of neoclassical economics for rational choice theory's manifest or latent economic imperialism. (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)

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)

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)

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)

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)

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)

In this paper, I review the literature on rational choice theory to scrutinize a number of criticisms that philosophers have voiced against its usefulness in economics. The paper has three goals: first, I argue that the debates about RCT have been characterized by disunity and confusion about the object under scrutiny, which calls into question the effectiveness of those criticisms. Second, I argue that RCT is not a single and unified choice theory—let alone an empirical theory of (...) human behavior—as some critics seem to suppose. Rather, there are several variants of RCT used in economics. Third, I propose that we think of RCT as a set of distinct research strategies to appreciate its diversity. This account implies that the effectiveness of any criticism depends on the variant of RCT we are considering. (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)

This book develops and defends a version of utilitarianism, including expected-utility theory, as a normative model of decision making. The defense, based on the idea of utility as achievement of goals, considers the endorsement of a norm as a decision and asks what reasons we have to endorse norms for decision making. The reasons derive from our pre-existing goals, so any norm we endorse must not fly in the face of these goals, although it must not be selfishly biased, either. (...) This approach is further clarified by drawing distinctions between decisions for the self, for a single other person, for several others, and for the self and others. The book discusses the implications of this argument for the psychological study of decision making, the act--omission distinction, moral education, decision analysis, risk analysis, and other questions of public policy. The final chapter sketches a prescriptive approach to group decision making. (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.

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)

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)

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)