Rational Choice Sociology Lecture 1 Rational Choice Approach

Rational Choice Sociology Lecture 1: Rational Choice Approach, Rational Choice Theory and Its Subject

Rational Choice Approach (RCA) Rational Choice Approach=a Methodology of Social Explanation • Explanation of social or collective phenomena should be grounded in • theory of individual behaviour (methodological individualism) The theory of individual behaviour most useful for explanation of social phenomena is Rational Choice Theory (RCT) (antipsychologism)

RCA is transdisciplinary • RCT is standard or “must” in the Economics since late 19 th century = Neoclassical Economics or Microeconomics RCA emerged as RCT was applied to explain “non-economic” phenomena (in the late 1950 s) Pioneering works by economists: Gary S. Becker. The Economics of Discrimination. Chicago, 1957 Gary S. Becker. Human Capital. Chicago, 1964 Gary S. Becker. A Treatise on Family. Cambridge (Mass. ) 1981 A Collection: Gary S. Becker. The Economic Approach to Human Behavior. Chicago, 1976.

RCA in Political Science (known also as Public Choice Theory or New Political Economy) • • • Pioneering or classical works: Downs A. An Economic Theory of Democracy. N. Y. , 1957 Buchanan J. M. , Tullock G. The Calculus of Consent: Logical Foundations of Constitutional Democracy 1962 Riker, Willliam H. Theory of Political Coalitions. New Haven: Yale University Press, 1962 Olson M. The Logic of Collective Action. Cambridge (Mass. ), 1965 Niskanen W. Bureaucracy and Representative Government. Chicago, 1971

RCA in Sociology: Prehistory • In Sociology RCA least influential because of prevalence of methodological • • collectivism or holism going back to E. Durkheim. Distant ancestors: Utilitarians of XVIII century (e. g. Francis Hutcheson, Adam Smith, David Hume) Some methodological ideas of Max Weber can be considered as prefiguration or anticipation of RCA (see Z. Norkus. Max Weber und Rational Choice Approach. Marburg, 2001 (in German); or Lithuanian translation Maxas Weberis ir racionalus pasirinkimas. V. , 2003). However, Weber did not practised what he preached… • Direct forerunners or closest kin to RCA in sociology: Exchange Theory (C. G. Homans, early P. Blau) Homans C. G. Social Behavior. Its Elementary Forms. N. Y. etc. , 1961 Blau P. M. Exchange and Power in Social Life. N. Y. : 1964 However they only forerunners: although methodological individualists, not antipsychologists

RCA in Contemporary Sociology I • In France: Raymond Boudon. Education, Opportunity and Social inequality. New York 1974. The Unintended Consequences of Social Action. New York, 1982 • In Germany: Opp, Karl-Dieter. The Rationality of Political Protest. Boulder, 1989 Esser, Hartmut. Soziologie. Allgemeine Grundlagen. 2. Aufl. Frankfurt a. M. 1996 Esser Hartmut. Soziologie. Spezielle Grundlagen. Bd. 1 -6. Frankfurt a. M. : 1999 -2001 In USA: Hechter, M. Principles of Group Solidarity. Berkeley, 1987. Coleman J. S. Foundations of Social Theory. Cambridge, Mass. , 1990 Translation into Lithuanian: Socialinės teorijos pagrindai. V. , 2005

RCA in Contemporary Sociology II • Critics of RCA in sociology (and paradoxically, its protagonists) call it “Neoutilitarianism” or “Economic Imperialism” (=Economic Science is about to annex subject areas of other social sciences) • Its proponents in sociology say that their goal is “to synthesize” or “bring together” 2 traditions of the social theory construction that divorced in the late 19 th-early 20 th centuries • Its critics say that it can explain very little, because people generally behave themselves non-rationally: even in the market, so rational choice theory cannot provide adequate foundation even for economic science (prevalent neoclassical economics is “bad” theory). So why to import this theory into sociology?

The subject matter of RCT I • Behavior Non-intentional Intentional (=action) Rational action Non-rational action traditional Instrumentally rational action affectual ? ? Value rational

The Structure of RCT = Theory of Instrumentally Rational Action • Instrumentally Rational Action (IRA) Parametrically IRA Under certainty Under risk Strategically IRA (=subject-matter of game theory) Under uncertainty Theory of Collective (Social Choice) or collective rationality

Guiding Idea for Description of Individual Action in RCT (2 -filter model of action)

Basic vocabulary of RCT • Virtuali pasirinkimo aibė – virtual set of choice, including all • • imaginable alternatives of choice Apribojimai – constraints Realių galimybių aibė – feasible set Pirmenybės ir lūkesčiai – preferences and expectations (beliefs; information about constraints and choice alternatives ) Elgesio pokyčiai – changes in behavior • Changes in behaviour = F (constraints, beliefs, preferences); • However, only beliefs and preferences are direct causes of action (the impact of constraints is mediated by beliefs)

How 2 nd filter works: Action Preferences Beliefs Evidence

Three Problems, Two Taboos and Heuristic of RCT • Problems: • • • (1) Which action is best under given preferences and beliefs? (2) Which beliefs are best under given evidence? (2) Which amount of evidence is optimal under given beliefs and preferences ? • Taboos: • Heuristic Principles: • (1) (2) (3) (1) do not allow preferences directly influence your beliefs (=wishful thinking); (2) do not ask which preferences (wants) are best or why they change (it is problem for other sciences if behaviour changed, try to explain them by changes in constraints; (2) if no changes in constraints, try to explain changes in behavior by changes in beliefs; (3) if neither (1) nor (2) works, consider hypothesis that preferences changed

Versions of RCT • Making “idealizing“ or „simplifying“ assumptions, a theorist can limit his task to 1 st problem. Most importantly, the assumption of “perfect information” can be made: an actor is completely and truly informed about the constraints; changes in constraints are instantaneously and at no cost reflected by beliefs of actor. Actor is choosing under certainty or under risk, but knowing “true” probabilities of circumstances under which she is acting • Under assumption of perfect information, RCT is only theory of • • practical instrumental rationality Dropping this assumption, i. e. setting the goal to explain why and how the rational beliefs should change (how to learn from experience rationally), RCT becomes theory both of practical instrumental and of epistemic rationality In this course (due to its elementary and introductory character), only the first problem under assumption of perfect information will be considered. For (informal) discussion of other two problems see Readings.