Rational Choice Theory

It has long appeared to many people that economics is the most successful of the social sciences. It has assumed that people are motivated by money and by the possibility of making a profit, and this has allowed it to construct formal, and often predictive, models of human behaviour. This apparent success has led many other social scientists to cast envious eyes in its direction. They have thought that if they could only follow the methods of economics they could achieve similar successes in their own studies. These sociologists and political scientists have tried to build theories around the idea that all action is fundamentally 'rational' in character and that people calculate the likely costs and benefits of any action before deciding what to do. This approach to theory is known as rational choice theory, and its application to social interaction takes the form of exchange theory.

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