Morning Quote of the Day

K DRAMA PINOY DRAMA

OR
BEAUTY FAME

O
R
RICH POOR

O
R
DISCIPLINE AND IDEAS IN THE
SOCIAL SCIENCES
DOMINANT APPROACHES AND IDEAS IN THE SOCIAL SCIENCES
Prepared By : Mr. Paul Marty Sandig
RATIONAL
CHOICE
THEORY
WHAT IS RATIONAL
CHOICE THEORY?  Derives from the word RATIONAL means
people act based on or in accordance to reason
and CHOICE that refers to an act of selecting or
making decision with two or more possibilities

 Rational choice theory in social work is an

important concept because it helps explain how
individuals make decisions.

 Rational choice theory can apply to a variety of

areas, including economics, psychology and
philosophy. This theory states that individuals
use their self-interests to make choices that will
provide them with the greatest benefit. People
weigh their options and make the choice they
think will serve them best.
Historical Context of
Rational Theory
Thomas Hobbes’ Leviathan (1651)
• Explained that the basic
functioning of political
institutions through individual
choices.
• He also postulated that choices
came from universally held
desires and dislikes.
Adam Smith (1776)
• Emphasized the likely social
functionality of Hobbes’
simplifying notion of egotism
• He asserted in his “Wealth of
Nations”, it is not from the
benevolence of the butcher, the
brewer, or the baker we expect our
dinner, but from their own interest
APPLICATIONS OF RATIONAL CHOICE
THEORY
Sociology:
- Rational choice theory can explain social phenomena. This is because all social
change and institutions occur because of individual actions

 Politics:
- Rational choice theory can be used to explain voting behaviors, the actions
of politicians and how political issues are handled.

 Economics and business:

- Rational choice theory can explain individual purchasing behaviors.
KEY CONCEPT IN RATIONAL
THEORY
 UTILITY MAXIMIZATION
- it refers to patterns of behavior in societies wherein choices made by individuals are
governed by the maximization of benefit and minimization of cost.

 STRUCTURE OF PREFERENCES
- it refers to the idea that the people are motivated by their personal desires and
aspiration.

 DECISION MAKING
- each individual takes full advantage of the likely worth of his own payoff.

 CENTRALITY OF INDIVIDUALS
- refers to the explanations of group outcomes.
THINKERS AND THEIR
CONTRIBUTIONS • Described RATIONAL CHOICE THEORY as
“a unified framework for understanding all
human behavior”.

• His major contribution was the ability for

having extended the realm of microeconomic
investigation to a broad extent of human
behavior and interaction such as
discrimination, crime and punishment, human
capital, families and organ maker.

• Awarded the NOBEL PRIZE in 1992

GARY BECKER (1976)

• Pioneer of Rational Choice Theory

• Theoretical contribution was the formation of a

more integrated social science on a firm
theoretical basis and developed the deductive
and inductive approaches to theory.

• He explained the principles of behavioral

psychology and elementary forms of social
behavior in small groups.

• He believed that the theory is derived from both

behavioral psychology and elementary
economics.

GEORGE
HOMANS
CRITICISM OF RATIONAL CHOICE
THEORY
 Rational choice theory also doesn’t take into consideration how ethics
and values might influence decisions

 doesn’t comment on the influence of social norms

 doesn’t account for individuals who make decisions based on fixed

learning rules, in that they do things because that’s the way they’ve
learned to do them—even when the decision has higher costs and
fewer benefits
ASSUMPTIONS OF
RATIONAL CHOICE THEORY
1.) All actions are rational and are made due to
considering costs and rewards.
2.) The reward of a relationship or action must
outweigh the cost for the action to be completed.
3.) When the value of the reward diminishes below
the value of the costs incurred, the person will stop
the action or end the relationship.
Quiz

½ Crosswise paper choose 1 among the Key Concept of

Rational Choice Theory and explain how it works.

 CENTRALITY OF INDIVIDUALS
 DECISION MAKING
 STRUCTURE OF PREFERENCES
 UTILITY MAXIMIZATION
ASSIGNMENT

 RESEARCH ATLEAST 5 PHILOSOPHERS WHO

GAVE THEIR IDEAS REGARDING RATIONAL
CHOICE THEORY AND EXPLAIN.
 REFERENCE : Disciplines and Ideas in the Social Science
Revised Edition
VIBAL Group Inc.
JOSE . ONG