Rational Choice Theory

Introduction to Rational Choice
Theory
Rational choice theory in social work is an important concept because it helps
explain how individuals make decisions. According to the definition of rational
choice theory External link , every choice that is made is completed by first
considering the costs, risks and benefits of making that decision. Choices that seem
irrational to one person may make perfect sense to another based on the
individual’s desires.
Those who are studying for a social work degree will learn a variety of evidence-
based theories to help them inform their work. Learning and understanding the
meaning behind rational choice theory and seeing rational choice theory examples
help future social workers characterize, explain and anticipate social outcomes. That
can improve the treatment and services they provide their clients.
What is Rational Choice Theory?

Rational choice theory can apply to a variety of areas, including economics,
psychology and philosophy. This theory states that individuals use their self-
interests to make choices that will provide them with the greatest benefit. People
weigh their options and make the choice they think will serve them best.
How individuals decide what will serve them best is dependent on personal
preferences. For example, one individual may decide that abstaining from smoking
is best for them because they want to protect their health. Another individual will
decide they want to smoke because it relieves their stress. Although the choices are
opposite, both individuals make these choices to get the best result for themselves.
Rational choice theory conflicts with some other theories in social work. For
example, psychodynamic theory states that humans seek gratification due to
unconscious processes. Conversely, rational choice theory states that there is always
a rational justification for behaviors. Individuals try to maximize their rewards
because they’re worth the cost.
History of Rationale Choice Theory

Rational choice theory origins date back centuries. Philosopher Adam Smith is
considered the originator of rational choice theory External link . His essay “An
Inquiry into the Nature and Causes of the Wealth of Nations,” from 1776, proposed
human nature’s tendency toward self-interest resulted in prosperity. Smith’s term
“the invisible hand” referred to unseen forces driving the free market.
Smith used the work of philosopher Thomas Hobbes’ “Leviathan” (1651) to

influence his own work. In “Leviathan,” Hobbes explained that political institution
functioning was a result of individual choices. Philosopher Niccolò Machiavelli, who
wrote “The Prince” in 1513, also introduced ideas related to rational choice theory
in his treatise.
Moving from economics to the social sciences, in the 1950s and 1960s, sociologists
George C. Homans, Peter Blau and James Coleman promoted rational choice theory
in relation to social exchange. These social theorists stated that a rational
calculation of an exchange of costs and rewards drives social behavior.
Rational choice theory in social interactions explains why people enter into or end
individual and group relationships.
Assumptions of rational choice theory

In order to fit the criteria for rational choice theory, the following assumptions are
made.
1. All actions are rational and are made due to considering costs and rewards.
2. The reward of a relationship or action must outweigh the cost for the action
to be completed.
3. When the value of the reward diminishes below the value of the costs
incurred, the person will stop the action or end the relationship.
4. Individuals will use the resources at their disposal to optimize their rewards.
Rational choice theory expresses that individuals are in control of their decisions.
They don’t make choices because of unconscious drives, tradition or environmental
influences. They use rational considerations to weigh consequences and potential
benefits.
Applications of rational choice theory
Rational choice theory has a wide variety of applications in all types of spheres
affecting human populations.
 Economics and business: Rational choice theory can explain individual

purchasing behaviors.
 Politics: Rational choice theory can be used to explain voting behaviors, the
actions of politicians and how political issues are handled.
 Sociology: Rational choice theory can explain social phenomena. This is
because all social change and institutions occur because of individual actions.
 Addiction treatment: Rational choice theory can be used to identify addiction
motivations and provide substance alternatives that are equally beneficial to
patients.
When there’s a need to describe, predict and explain human behavior, rational
choice theory can be applied.
Strengths and weaknesses of rational choice theory
Rational choice theory can be helpful in understanding individual and collective

behaviors. It helps to pinpoint why people, groups and society as a whole move
toward certain choices, based on specific costs and rewards.
Rational choice theory also helps to explain seemingly “irrational” behavior. Because
rational choice theory states that all behavior is rational, any type of action can be
examined for underlying rational motivations. Rational choice theory can promote
inquiry and understanding, helping differing parties, like a client and a therapist, to
recognize the other’s rationale.
A limitation of rational choice theory is that it focuses on individual action. While

one could say that individual action drives large social structures, some rational
choice theory critics argue the theory is too limited in its explanation.
Another weakness of rational choice theory is that it doesn’t account for intuitive
reasoning or instinct. For decisions that must be made in an instant, such as
decisions that influence survival, there may not be time to weigh the costs and
benefits.
Applications of rational choice theory
Rational choice theory has a wide variety of applications in all types of spheres
affecting human populations.
 Economics and business: Rational choice theory can explain individual

purchasing behaviors.
 Politics: Rational choice theory can be used to explain voting behaviors, the
actions of politicians and how political issues are handled.
 Sociology: Rational choice theory can explain social phenomena. This is
because all social change and institutions occur because of individual actions.
 Addiction treatment: Rational choice theory can be used to identify addiction
motivations and provide substance alternatives that are equally beneficial to
patients.
When there’s a need to describe, predict and explain human behavior, rational
choice theory can be applied.
Strengths and weaknesses of rational choice theory
Rational choice theory can be helpful in understanding individual and collective

behaviors. It helps to pinpoint why people, groups and society as a whole move
toward certain choices, based on specific costs and rewards.
Rational choice theory also helps to explain seemingly “irrational” behavior. Because
rational choice theory states that all behavior is rational, any type of action can be
examined for underlying rational motivations. Rational choice theory can promote
inquiry and understanding, helping differing parties, like a client and a therapist, to
recognize the other’s rationale.
A limitation of rational choice theory is that it focuses on individual action. While

one could say that individual action drives large social structures, some rational
choice theory critics argue the theory is too limited in its explanation.
Another weakness of rational choice theory is that it doesn’t account for intuitive
reasoning or instinct. For decisions that must be made in an instant, such as
decisions that influence survival, there may not be time to weigh the costs and
benefits.
STUDENT GROUP ACTIVIITY 1:
USING YOUR UNDERSTANDING OF THE CONCEPTS OF RATIONAL CHOICE

THEORY, CREATE A SHORT FILM REFLECTING THE USE OF THE THEORY IN
REAL LIFE DAY-TO-DAY INTERACTION.
Mechanics:
1. Number of Group Participants should be at least 3 to 4 members each group.

2. The scenes being projected should follow strict covid 19 protocols example
Wearing of facemasks while doing the scenes, social distancing should be strictly
observed in the making of the video.
3. All members should have a role or part in the video.
4. The video MUST be about RATIONAL CHOICE THEORY. Do not send me a video
which is out of the topic class.
5. Tagalog or English can be used in the making of the short film or video presentation.
6. I will be creating google classroom or FB DISS Page wherein all videos must be
uploaded.
7. Rubrics will be used in grading your outputs class. This is 40 pts worth of score.
INDIVIDUAL ACTIVITY 2:
ESSAY WRITING.
Direction: Write an essay entitled: ON POINT: SCARCITY AND CHOICE. Enumerate situations that can be
a result of scarcity or poverty
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Introduction to Rational Choice

What is Rational Choice Theory?

History of Rationale Choice Theory

Smith used the work of philosopher Thomas Hobbes’ “Leviathan” (1651) to

Assumptions of rational choice theory

Applications of rational choice theory

 Economics and business: Rational choice theory can explain individual

Strengths and weaknesses of rational choice theory