Rational choice theory is a principle that says that people act rationally in any given situation. The theory assumes that all humans are “rational actors” and that everyone freely chooses behaviors based on rational calculations that maximize utility. Most mainstream economic and even criminal ideologies are based on the rational choice theory, meaning that most of our policies and thinking in the areas of finance and public safety are based on the “fact” that all people act rationally.
However, there are many who don’t believe in rational choice theory, myself being one of them. And yet still, the theory drives much of our discourse and action regarding human behavior. Which is a problem, seeing as almost no human is rational. I’ve still yet to meet one. In this article, we discuss the rational choice theory, how its taken hold on society, and how we as individuals can use it to our competitive advantage.→ CONTINUE READING