Public Choice Theory in Economics

Flashcards covering key vocabulary and concepts from the lecture on Public Choice Theory in Economics.

Public Choice

The application of economics to political actors, including interest groups, politicians, bureaucrats, and voters.

Methodological Individualism

The principle that individuals, not institutions, are the primary actors in political behavior.

Behavioral Symmetry

The idea that political actors respond to incentives in the same way as non-political actors.

Rational Ignorance

The concept that individuals may choose not to learn certain information when the costs of learning exceed the benefits.

Rational Irrationality

The notion that individuals may indulge in irrational beliefs when it is inexpensive to do so.

Median Voter Theorem

A principle stating that in a two-candidate election, the candidate who appeals to the median voter is likely to win.

Ideal Point

The most preferred political position or policy for a voter, often used in assessing voting behavior.

Emotional Attachment

A strong personal bond or affinity towards certain ideas or beliefs, regardless of their rationality.

Incentives

Factors that motivate individuals to act in certain ways, crucial in both economics and political behavior.

Electoral Appeal

The strategy used by politicians to attract the votes of the median voter as a path to winning elections.