Q3: Lesson 2: Rational Choice Theory

Micro Level Approach

• individuals as level of analysis

• social interactions

• small patterns

Macro Level Approach

• social aggregate (collection of people who share physical location)

• social structure, social institutions, political and economic change

• large patterns

• broader social phenomena = whole social structure & system and phenomena

Large Systems

• nations

• legal systems

• economies

Small Systems

• families

• relationships

• individuals

Rational Choice Theory

• why people act or behave in the way they do

• people usually do what they believe to have the overall best outcome

• individuals’ actions are based on their preferences, beliefs, and feasible strategies

3 Pillars of RCT

1. strategies/courses of action

2. preferences over the end-statesto which combinations of actions chosen by the various players lead

3. beliefs about important parameters