Rational Choice Theory

History and Development of Rational Choice theory

When we are faced with a decision, there are always some options involved. Which path is the correct one, which option would best serve our purpose, which choice appears most suitable are some of the key questions on which we base our decision. Man by nature is interested in maximization of his profits whether professional or personal. No one would deliberately want to take a risk that is bound to go awry. In almost every case, man carefully studies the situation and then chooses the best option available to him. And this is not something limited to money matters but extends itself to almost every area of life including social relationships, religion, politics etc.

Rational choice is thus defined as: "A choice of a course of actions is "rational" if it results in a maximization of well-being. In short, rational...
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