It is possible to identify 3 distinct elements in the choice situation.
The choice situation must be separated into two main dimensions.
The first is the distinction between perfect and imperfect information about the outcomes.
Once the job seeker has received a number of offers of employment and is trying to decide which one to take, he cannot spend too long collecting information, since by the time he comes to his decision, it may be that the best is no longer available, the deadline for accepting the offer may have passed.
Time is therefore an important factor in determining the level of information collection that is optimal.
While the rationality of an action is ensured by its standing in the right kind of relation to the goals and beliefs of the agent, the rationality of beliefs depends on their having the right kind of relation to the evidence available to him.
This is a normative theory which can then be employed in an explanatory function.
This would involve visiting the local job centre and looking in that vacancies section of the newspapers to ascertain the kind of employment that is currently available.
It is not the case that the more information that an individual gathers, the better of they will be because there are costs associated with the gathering of information.
, Research Paper Rational Choice Theory is perhaps one of the best known methodological approaches to the explanation of individual action.
In this essay I hope to outline Rational Choice Theory and discuss certain areas of weakness in this theory, where its explanatory powers arguably breakdown and expand on the theory’s formulation.