{"id":110529,"date":"2023-08-13T16:49:00","date_gmt":"2023-08-13T20:49:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=110529"},"modified":"2023-08-16T13:18:13","modified_gmt":"2023-08-16T17:18:13","slug":"what-is-rational-choice-theory","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/what-is-rational-choice-theory\/","title":{"rendered":"What Is Rational Choice Theory? Steven Pinker Explains"},"content":{"rendered":"\n

How do you choose between options? What is rational choice theory<\/a>, and what does it have to do with the way you make decisions?<\/p>\n\n\n\n

Rationality<\/em> by Steven Pinker is both a call to action<\/a> and a how-to manual for thinking and acting more rationally. Pinker explains that economists, philosophers, and others have defined rationality using rational choice theory.<\/p>\n\n\n\n

Continue reading to learn what this theory is and how it applies to your everyday life.<\/p>\n\n\n\n\n\n\n\n

Rational Choice Theory<\/h2>\n\n\n\n

What is rational choice theory? It states that people will choose between options with the aim of maximizing<\/a> the rewards of their decision<\/strong>. More specifically, when making a rational decision, a person considers the possible outcomes of each option, judges how much they want (or don\u2019t want) each outcome, and considers how likely each outcome is to happen. This analysis yields an option\u2019s \u201cexpected utility\u201d: its potential rewards weighted by both desirability and probability<\/strong>. A rational person then chooses the option with the highest expected utility.<\/p>\n\n\n\n

For example, if someone is deciding if they should pack a warm coat for a trip, they\u2019ll first weigh the possible outcomes of each option by desirability. If the weather gets cold, they\u2019ll be happy they packed the coat. But if the weather ends up being warm, they\u2019ll be annoyed that they wasted space in their suitcase on such a bulky and heavy item. They\u2019ll then weigh the likelihood of each option: Is it more likely the weather will be cold or warm? And, from there, they\u2019ll decide which option has the highest expected utility, and they\u2019ll make that choice.<\/p>\n\n\n\n

Pinker notes that one person’s judgment of expected utility might differ from someone else\u2019s if their values are different. This doesn\u2019t mean that either choice is more or less rational than the other\u2014they can be different but still be equally rational. If Joe is sensitive to cold, he might opt to bring a coat even if it might mean overpacking, while Jenny, who doesn\u2019t mind the cold as much but hates overpacking, might leave her coat at home even if it might mean being chilly. Both choices are rational because they each align with the expected utility as determined by each chooser.<\/p>\n\n\n\n

Rational Choice Theory Through the Ages<\/strong>

Rational choice theory was first proposed by 18th-century economist Adam Smith, who argued that people perform a cost-benefit analysis<\/a> on every decision to maximize their individual rewards. Though Smith didn\u2019t detail how a person would weigh desirability versus probability like Pinker, his overall theory aligns with the underlying theme of Pinker\u2019s argument: People make decisions according to what they think will benefit them.

Smith primarily focused on measurable, financial rewards, but in the mid-20th century, thinkers in other fields, including social behaviorists, political scientists, and criminologists, adopted the theory and broadened it to account for how people navigate not just economic decisions<\/a> but also relationships, using the theory to describe how people make decisions when interacting with others<\/a>. In this way, the theory has been adapted to describe and predict human behavior in any number of situations, not just economic circumstances as originally intended. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Pinker notes that, while people may not have the time nor inclination to thoroughly calculate the expected utility of every decision, if they think in these terms more often, they\u2019d make better decisions<\/a> overall. In the following sections, we\u2019ll look at reasons people fail to think rationally and techniques people can use to think critically more often.<\/p>\n\n\n\n

(Shortform note: In The Paradox of Choice<\/em><\/a>, Barry Schwartz argues that not only is it not feasible to fully weigh the pros and cons of every decision (as Pinker notes), but it\u2019s also not desirable<\/a>. He distinguishes between maximizers<\/em>, who weigh each choice (even small ones) carefully for the best possible option, and satisficers<\/em>, who more quickly accept options that meet their standards even if not perfect. He argues that maximizing takes up more time than it\u2019s worth and leads to stress while satisficing<\/a> leads to decent enough results without the need to carefully think through the nuances of every option. In this way, he and Pinker align in their realistic approach to how far a person can push rationality.)<\/p>\n","protected":false},"excerpt":{"rendered":"

How do you choose between options? What is rational choice theory, and what does it have to do with the way you make decisions? Rationality by Steven Pinker is both a call to action and a how-to manual for thinking and acting more rationally. Pinker explains that economists, philosophers, and others have defined rationality using rational choice theory. Continue reading to learn what this theory is and how it applies to your everyday life.<\/p>\n","protected":false},"author":9,"featured_media":76394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[42,9],"tags":[1127],"class_list":["post-110529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motivation","category-psychology","tag-rationality","","tg-column-two"],"yoast_head":"\nWhat Is Rational Choice Theory? 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