Rational Choice Theory
(Redirected from rational economic theory)
- See: Sociology, Instrumental Rationality, Behavioral Economics.
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/rational_choice_theory Retrieved:2014-1-21.
- Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior.  Rationality, interpreted as "wanting more rather than less of a good", is widely used as an assumption of the behavior of individuals in microeconomic models and analysis and appears in almost all economics textbook treatments of human decision-making. It is also central to some of modern political science,  sociology,  and philosophy. It attaches "wanting more" to instrumental rationality, which involves seeking the most cost-effective means to achieve a specific goal without reflecting on the worthiness of that goal. Gary Becker was an early proponent of applying rational actor models more widely.  He won the 1992 Nobel Memorial Prize in Economic Sciences for his studies of discrimination, crime, and human capital.
- • Lawrence E. Blume and David Easley (2008). “rationality," The New Palgrave Dictionary of Economics , 2nd Edition. Abstract." by Abstract] & pre-publication copy.
• Amartya Sen (2008). “rational behaviour," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
- Susanne Lohmann (2008). “rational choice and political science,"The New Palgrave Dictionary of Economics, 2nd Edition.Abstract.
- Peter Hedström and Charlotta Stern (2008). “rational choice and sociology," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
- Gary S. Becker (1976). The Economic Approach to Human Behavior. Chicago. Description and scroll to chapter-preview links.
- (Kahneman, 2011) ⇒ Daniel Kahneman. (2011). “Thinking, Fast and Slow." Macmillan. ISBN:0374533555