RATIONAL CHOICE THEORY

It means people act based on or following reason or logic

• Rational

• Choice

• Valid

It refers to an act of selecting or making a decision when faced with two (2) or more possibilities

• Rational

• Choice

• Valid

assumes that individuals make prudent and logical decisions that provide them with the greatest benefit or satisfaction and that are in their highest self-interest.

• Rational Choice Theory

• Functinalism

• Symbolic Interactionism

It denote the positive or negative evaluations individuals attach to possible outcomes of their actions

• Preferences

• Beliefs

• Constraints

It refer to perceived cause–effect relations, including the perceived likelihood with which an individual’s actions will result in different possible outcomes.

• Preferences

• Beliefs

• Constraints

It define the limits to the set of feasible actions.

• Preferences

• Beliefs

• Constraints

What Assumptions of Rational Choice Theory is this:

All actions can be ranked in a complete partial ordering of preference

• Completeness

• Transitivity

• Independence of Irrelevant Alternatives

What Assumptions of Rational Choice Theory is this:

If action A is preferred to B, and action B is preferred to C, then A is preferred to C.

• Completeness

• Transitivity

• Independence of Irrelevant Alternatives

What Assumptions of Rational Choice Theory is this:

If A is preferred to B out of the choice set {A, B}, then introducing a third alternative X, thus expanding the choice set {A, B, X}, must leave A preferred to B.

• Completeness

• Transitivity

• Independence of Irrelevant Alternatives

What form of individual’s preference is this:

It occurs when an individual prefers A to B and does not view them as equally preferred.

• Strict

• weak

• Indifferent