Rational choice theory (RCT),
Definition of Rational choice theory (RCT):
Attempts to explain all (conforming and deviant) social phenomenon in terms of how self-interested individuals make choices under the influence of their preferences. It treats social exchange as similar to economic exchange where all parties try to maximize their advantage or gain, and to minimize their disadvantage or loss. RCTs basic premises are that (1) human beings base their behavior on rational calculations, (2) they act with rationality when making choices, (3) their choices are aimed at optimization of their pleasure or profit. This concept has applications in economics and marketing, and in criminology and international relations. RCT, however, cannot explain the existence of certain social phenomenon such as altruism, reciprocity, and trust, and why individuals voluntarily join associations and groups where collective and not individual benefits are pursued. Not to be confused with theory of rational expectations. Also called theory of reasoned action.
How to use Rational choice theory (RCT) in a sentence?
- The rational choice theory was vital in understanding the logic behind the decision making process utilized by our new contemporaries.
- The businessman went to his business partners and investors in a weekly meeting and explained the rational choice theory behind merging with their competition.
- Sometimes you can not figure out the rational choice theory and all you can do is come up with your best guess.
Meaning of Rational choice theory (RCT) & Rational choice theory (RCT) Definition