Rational choice theory refers to a set of guidelines that help understand economic and social behaviour. The theory originated in the eighteenth century and can be traced back to the political economist and philosopher Adam Smith. The theory postulates that an individual will perform a cost–benefit analysis to determine whether an option is right for them. It also suggests that an individual's self-driven rational actions will help better the overall economy. Rational choice theory looks at three concepts: rational actors, self interest and the invisible hand.
William Harrison Riker was an American political scientist who is prominent for applying game theory and mathematics to political science. He helped to establish University of Rochester as a center of behavioral revolution in political science.
Public choice, or public choice theory, is "the use of economic tools to deal with traditional problems of political science." Its content includes the study of political behavior. In political science, it is the subset of positive political theory that studies self-interested agents and their interactions, which can be represented in a number of ways—using standard constrained utility maximization, game theory, or decision theory. It is the origin and intellectual foundation of contemporary work in political economy.
Behavioral economics is the study of the psychological, cognitive, emotional, cultural and social factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by classical economic theory.
An institution is a humanly devised structure of rules and norms that shape and constrain social behavior. All definitions of institutions generally entail that there is a level of persistence and continuity. Laws, rules, social conventions and norms are all examples of institutions. Institutions vary in their level of formality and informality.
Neo institutionalism is an approach to the study of institutions that focuses on the constraining and enabling effects of formal and informal rules on the behavior of individuals and groups. New institutionalism traditionally encompasses three major strands: sociological institutionalism, rational choice institutionalism, and historical institutionalism. New institutionalism originated in work by sociologist John Meyer published in 1977.
New Institutional Economics (NIE) is an economic perspective that attempts to extend economics by focusing on the institutions that underlie economic activity and with analysis beyond earlier institutional economics and neoclassical economics. Unlike neoclassical economics, it also considers the role of culture and classical political economy in economic development.
Historical institutionalism (HI) is a new institutionalist social science approach that emphasizes how timing, sequences and path dependence affect institutions, and shape social, political, economic behavior and change. Unlike functionalist theories and some rational choice approaches, historical institutionalism tends to emphasize that many outcomes are possible, small events and flukes can have large consequences, actions are hard to reverse once they take place, and that outcomes may be inefficient. A critical juncture may set in motion events that are hard to reverse, because of issues related to path dependency. Historical institutionalists tend to focus on history to understand why specific events happen.
Peter Carl Ordeshook is an American political scientist. He is the Mary Stillman Harkness Professor of Political Science at the California Institute of Technology in Pasadena, California.
An Economic Theory of Democracy is a treatise of economics written by Anthony Downs, published in 1957. The book set forth a model with precise conditions under which economic theory could be applied to non-market political decision-making. It also suggested areas of empirical research that could be tested to confirm the validity of his conclusions in the model. Much of this offshoot research eventually became integrated into public choice theory. Downs' theory abstains from making normative statements about public policy choices and instead focuses on what is rational, given the relevant incentives, for government to do.
James D. Fearon is the Theodore and Francis Geballe Professor of Political Science at Stanford University; he is known for his work on the theory of civil wars, international bargaining, war's inefficiency puzzle, audience costs, and ethnic constructivism. According to a 2011 survey of International Relations scholars, Fearon is among the most influential International Relations scholars of the last twenty years. His 1995 article "Rationalist Explanations for War" is the most assigned journal article in International Relations graduate training at U.S. universities.
Margaret Levi is an American political scientist and author, noted for her work in comparative political economy, labor politics, and democratic theory, notably on the origins and effects of trustworthy government.
Subrata Kumar Mitra was director and research professor at the Institute for South Asian Studies at the National University of Singapore till May 20, 2018. Currently emeritus at the University of Heidelberg.
The Rochester school was an influential movement in the Political Science Department at the University of Rochester. Among its key figures were William H. Riker and Kenneth Shepsle, who popularised the study of public choice following a large donation from Xerox, a company based in the same city as the university. It preceded and was essential to the behavioral revolution in political science, and is now considered broadly in the mainstream of political methodology.
Rational choice institutionalism (RCI) is a theoretical approach to the study of institutions arguing that actors use institutions to maximize their utility, and that institutions affect rational individual behavior. Rational choice institutionalism arose initially from the study of congressional behaviour in the U.S. in the late 1970s. Influential early RCI scholarship was done by political economists at California Institute of Technology, University of Rochester, and Washington University. It employs analytical tools borrowed from neo-classical economics to explain how institutions are created, the behaviour of political actors within it, and the outcome of strategic interaction.
James D. Morrow is the A.F.K. Organski Collegiate Professor of World Politics at the University of Michigan and a member of the American Academy of Arts and Sciences, best known for his pioneering work in noncooperative game theory and selectorate theory.
The altruism theory of voting is a model of voter behavior which states that if citizens in a democracy have "social" preferences for the welfare of others, the extremely low probability of a single vote determining an election will be outweighed by the large cumulative benefits society will receive from the voter's preferred policy being enacted, such that it is rational for an “altruistic” citizen, who receives utility from helping others, to vote. Altruistic voting has been compared to purchasing a lottery ticket, in which the probability of winning is extremely low but the payoff is large enough that the expected benefit outweighs the cost.
Kenneth Shepsle is an American political scientist who is influential for rational choice scholarship. He is George D. Markham professor of government at Harvard University, and a research associate at the Institute for Quantitative Social Science there. He is a fellow of the American Academy of Arts and Sciences and of the National Academy of Sciences.
Heresthetic is an approach to understanding how political actors manipulate the decision-making process so they can win. Heresthetic is a positive political theory, including aspects of game theory, public choice theory, rational choice theory, and social choice theory to political science. Political scientist William H. Riker is considered the creator and one of the most prominent supports of theory.
Rational choice is a prominent framework in international relations scholarship. Rational choice is not a substantive theory of international politics, but rather a methodological approach that focuses on certain types of social explanation for phenomena. In that sense, it is similar to constructivism, and differs from liberalism and realism, which are substantive theories of world politics. Rationalist analyses have been used to substantiate realist theories, as well as liberal theories of international relations.
