Rational choice theory - Essay Example

Only on StudentShare

Extract of sample
Rational choice theory

Specifically, rational choice theory also claims that the decision maker knows all the potential alternatives and that s/he makes a decision after evaluating them all (Heath 2001).
Decision-making process in organizations can be distinguished as automatic— regular decisions made in accordance to established guiding principles—or non-programmed—choices necessitating new and innovative solutions (White 2006). Furthermore, decisions vary with regard to the level of risk present, ranging from those wherein the results of a decision are fairly definite to those wherein results are considerably indefinite. Indefinite circumstances are communicates as probability statements derived from either subjective or objective facts (Heath 2001). Rational choice theory portrays decision makers as systematically rummaging around appropriate and relevant information to make the best possible decision.
This essay will discuss the premises of rational choice theory, its implications on managerial decision making, and the validity of the argument that ‘individuals are rational and normally act as maximizing entrepreneurs’.
Rationality is revered in the Western world. A rational choice is one that arises in structured procedures and maximizes a value, regardless if it is marketability, controllability, reliability, efficiency, integrity, or any of numerous other values (Goodin 1998). Observance of any value requires upholding one alternative over another. According to rational choice theory there are major steps to making a rational decision (Allingham 2002). The endeavor is as crucial as the ultimate decision, due to the fact that each step affords an opportunity to re-evaluate the minimized and maximized values (Allingham 2002). The first step is problem definition. This entails identifying key variables under consideration and analyzing the ...Show more

Summary

Customarily, theorists and academics have viewed decision making as the intricate mechanism by which the processes of problem identification,…
Author : karelle80
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Rational choice theory"
with a personal 20% discount.
Grab the best paper

Related Essays

Rational Choice
For example if I think that a chewing gum if not worth having or it does not give the satisfaction inline with its cost I would never buy it. 1. For consideration of staying at school rather than dropping out and following the great legends who followed that very path, there can be several reasons that any individual might give based on their respective mindsets and frameworks.
6 pages (1500 words) Essay
Investment Theory, Rational and Irrational
We may regret our decisions so frequently, and yet we manage to learn from our folly seldom. Human beings are constantly susceptible to a plethora of subconscious tendencies originating from a domain that knows no semblance of logic or reason. Of course, when it comes to money and business we try to make a more balanced assessment of things, keeping our own personal biases aside to a large extent.
8 pages (2000 words) Essay
Researching politics
In this case the choice maker can give the proper justification of the choice made. Taking time for a particular choice and making particular things as choices
6 pages (1500 words) Essay
Theories of Juvenile Crime
In 1968, Becker (Books, 2010) claimed that juveniles weigh personal factors such as need, vengeance and pleasure and situational factors such
1 pages (250 words) Assignment
Criminal Justice: Causal Explanation of the Illegal Behaviors of Enron
White-collar crime has disastrous economic effects on the society while street crime has a relatively smaller impact. For example, after the discovery of the fishy deal that was going on in Enron, the investigation revealed that Lou Pai alone had embezzled $250 million.
3 pages (750 words) Essay
Assess the strengths and weaknesses of Rational choice theory(RCT) as an analytic framework for politics and IR
use as a scientific methodological theory to propagate political activism and has reached the stature of globally applicable to the world political and IR issues. Rational choice theory had its root in Liberal belief, and economic theory based on rationality. This theory, in
6 pages (1500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT