Rational Choice Theory

Rational Choice Theory is an economic theory that is used to understand and model common social and economic behavior. First postulated by economist Gary Becker, this theory attributes the business, and human, goal of always wanting more to “instrumental rationality” (goal-driven reasoning). In simple terms this means using the cheapest or easiest means to achieve a goal without giving moral or practical thought as to whether the goal is actually worth achieving (i.e. asking whether the goal decent, moral or proper).

This theory is the basis for most business and government goals; setting the goal and doing whatever is necessary to achieve that goal without deep consideration of the propriety or morality of that goal. Unfortunately, in human society there are many individuals who also use this type of thinking to reach personal goals and this type of personal behavior would commonly be described as amoral, or even sociopathic.


x