Think-Pair-Share

1. Did you make the same choice or

decision? Why or why not?
2. How was the whole experience of
assessing your options? Was it difficult?
Was it easy?
3. Would you say that you applied
rationality when making that final choice
or decision?
February 7, 2019 Christell Mae Rodriguez-
Alcano
11-HUMSS

Rational Choice Theory

Important Key Concepts
Key Concepts in Rational Choice Theory

1. Utility maximization
2. Structure of preferences
3. Decision-making under conditions of
uncertainty
4. Centrality of individuals in the
explanation of group outcomes
Group work
Groupwork

1. Read with comprehension the reading

material about the key concepts in Rational
Choice Theory.
2. Think of situations where you can apply such
concepts and show it thru a group
presentation of your choice.
3. Each group will be given 10 mins to prepare
their presentation
4. Be guided by the rubric for the scoring
Utility Maximization

Refersto patterns of behavior in societies

wherein the choices made by individuals
are governed by the maximization of
benefits and minimization of costs.
Structure of preferences

Refers to the idea that people are

motivated by their personal desires and
aspirations, but since it is not possible for
them to attain all of the things that they
want, they must make choices related to
their goals and means for attaining those
goals.
Decision-making under conditions of
uncertainty

Means that each individual takes full

advantage of the likely worth of his own
payoff.
Centrality of individuals in the
explanation of group outcomes

Means that it is by reference to the

maximizing actions of individuals that group
outcomes must be explained.
How can you apply Rational Choice Theory
in analyzing social/political phenomena?
How can you apply the concepts of Rational
Choice Theory in making personal decisions?
“It is not from the benevolence of the butcher, the
brewer, or the baker, that we expect our dinner, but
from their own regard to their own interest”

-Adam Smith, Wealth of Nations 1776

Fact or Bluff?
Utility maximization refers to the patterns of behavior in
societies wherein the choices made by the individuals
are governed by the maximization of benefits and
minimization of costs
Rational means being logical and reasonable.
There is always certainty every time we make
decisions.
Questions?