Rational Choice

1

• Session 7
• Rational Choice

2
The Rational Choice Approach (a.k.a. Rat Choice)

• Participation cannot be explained simply by
  considering associative tendencies and shared
  grievances (Disturbance Theory)
• Participation involves the calculation of costs
  and benefits

3
The Benefit of Participation A Collective Good

• Collective Good (a public good, a collective
  benefit variations on the name but not the
  meaning of the term)
• This is a benefit that accrues to all
• Three characteristics
• Non-consumable cannot be used up
• Non-excludable no one can be excluded
• Non-divisible cannot be divided

4
The Rational Actor

• Example of a benefit workplace safety
• There is no reason to contribute to the provision
  of the public good
• The rational actor will FREE RIDE
• The benefit can be enjoyed without contributing
  to the production of the benefit
• Each individual contribution is so slight,
  participation will not matter, so why contribute

5
The Solution to the Free Rider Problem

• Selective Benefits Accrue only to those who
  participate
• Material does this need to be defined?
• Solidary A social benefit
• Purpose A psychological benefit

6

• Exchange Theory
• Patrons