Rational Choice Theory and Explanation

Abstract

Much of the debate concerning rational choice theory (RCT) is fruitless because many people (both critics and defenders) fail to correctly understand the role it plays in developing explanations of social phenomena. For the most part, people view rational choice theory as a species of intentional explanation; on the best available understanding, however, it should be viewed as contributing to the construction of straightforward causal explanations. Debate concerning RCT can progress in a worthwhile manner only once this point is correctly understood. Once it is, many common critiques are easily answered, but at the same time, the ambitions of some rational choice theorists are deflated.

Blood in the boardroom: Family relationships influencing the functions of the board

“…Starting with the individual, we can say that an act of egoism is an act that is beneficial for the individual. Assuming rational choice (Lovett, 2006), the cost of the act for the individual, C i , is compared with the individual benefits, i.e., the utility, U i , and if U i > C i , then the act is performed. An act of altruism can be defined as an act that is not beneficial for the individual.…”

Understanding the Human Factor of the Energy Transition: Mechanisms Underlying Energy-Relevant Decisions and Behaviors

“…Here, ECB is an outcome of people trying to maximize utility functions. This approach is fruitful when the aim is to develop causal explanations of micro level behavior and its effects on the macro level (Lovett, 2006;Liebe and Preisendörfer, 2010). In the context of this paper, the second strand appears to be most relevant as it implies looking at how high level structures affect low level structures and vice versa while allowing for a rich contextual understanding of energy consumption.…”

Rational choice theory

“…Lovett (2006) points to the importance of comparative statics rather than point explanations/predictions. In comparative statics we calculate how the target variable changes by manipulating a parameter of the model.…”