Rational choice theory
WE CONSCIOUSLY and unconsciously know that we always have a choice – what to eat, what clothes to wear, which job offer to grab, who to marry, and when to settle, among others.
Leftists who choose to stay in the shadow of thick forests and get a perspective of the country’s conditions below have the right to do so. How people can overthrow a dictator or be manipulated by him for whatever result they would like for this country, it’s their choice.
But what is rational choice theory and how significant it is as a reflection point of our actions today?
Many of our individual choices are sometimes decided on a whim. There are also half-hearted choices. There are also overwhelming choices, or overdue choices, or delayed choices, or lost choices. And most of the time, they are illogical choices.
Rational choice theory is actually an economic principle that states that individuals always make prudent and logical decisions. Out of the several times that we had to make choices, how many of those where rational ones?
The theory states that we can only reap great benefits and achieve satisfaction from rational decisions. Most mainstream academic assumptions and theories are based on rational choice theory, and should only be based on careful thought and logical studies.
Rational choice theory assumes that all people try to actively maximize their advantage in any situation and therefore consistently try to minimize their losses. The theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing, and aim to increase either pleasure or profit.
Rational choice theory also stipulates that all complex social phenomena are driven by individual human actions. Therefore, if an economist wants to explain social change or the actions of social
institutions, he needs to look at the rational decisions of the individuals that make up the whole.
The rational choice theory as it is drawn from an economic perspective is found only very appropriate in any economic approach, and is very helpful to any economists or to those whose mindset is increasing their financial gains, or to those who wants to prosper in their business endeavors.
To be self-sufficient is not easy even to those who only inherited their capital from their rich parents. To maintain a business, rational choices should be made at all times. Economists find the theory very valuable because it fuels them in reaching their goals. It is hoped that the government should also make use of this theory in promoting social reforms for the country.
There is not much financial gain in it but the wisdom, comfort, peace and order the rational choice can bring to Filipinos are exponential when used.
While rational choice theory is clean and easy to understand, it is often contradicted in the real world. For example, political factions that were in favor of the Brexit vote held on June 24, 2016, used promotional campaigns that were based on emotion rather than rational analysis. These campaigns led to the semi-shocking and unexpected result of the vote, when the United Kingdom officially decided to leave the European Union.
Individuals often make irrational decisions and explores why they do so like science experiments. It cannot be neglected; decision-makers would have different opinions. Ordinary people would also have their own. But we can always learn from previous mistake and avoid repeating them with coming up logical choices, or rational choices when pressured next time. We cannot always rely on just our emotions. ( Paid article)