Rational

Choice Theory
Meaning…..
 Is a sociological theory which pronounces
that there is a rational, definable, and
calculable basis to human decision-
making.
 It is a product of Scarcity and demands
people to make the right and rational
choice.
George Homans
A sociologist who pioneered
the Rational Choice Theory in
1960.
Take note…..
 This theory also largely borrows from
economics
 This ideology make a notion that all
people are Rational Egoist.
 It is also based on the social exchange
theory
 Individuals are motivated by their
personal wants and goals and are driven
by personal desires.
Fundamental element….

“Is the belief that human action is essentially rational

and calculative in nature.”

“The supposition that complex social phenomena

can be described in terms of the individual actions
that bring about that phenomena.”
Methodological Individualism
 An aggregate social behavior is assumed
to result from the behavior of individual
actors, each of whom is making their
individual decisions.
Social Consequence……
SCARCITY is the chief economic problem of
having apparently unlimited human wants
in a world of insufficient resources.
1. Choice
2. Tradeoffs
3. Opportunity Cost
Choice
Comes about as an outcome of scarcity.
Since human wants unlimited resources
(e.g. time and Money) are limited, people
cannot practically meet all their wants.
Tradeoffs
All the choice we made face ‘tradeoffs’
because something must be sacrificed or
given up whenever a choice is made.
Opportunity Cost
Because of scarcity, it is inevitable that one
will have to forego or sacrifice at least one
option.
Key Concepts…
1. Utility maximization;
2. Structure of preferences;
3. Decision-making under conditions of
uncertainty; and
4. Centrality of individuals in the
explanation of collective outcomes.
Major Contributors
 Gary Becker investigated human
behavior and interactions such as
discrimination, crime and punishment,
human capital, families, and organ
market.
 George Homans espoused the Exchange
theory.
Strengths… Weaknesses…
 Generality Critiques forwarded
 Parsimony by the heretics,
sociologists,
 Predictive
psychologists, and