Rational Choice Theory : The Canadian Federal Minster Of Fisheries And Oceans
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In 1992 the Canadian Federal Minster of Fisheries and Oceans, John Crosbie, declared a moratorium on the Northern Cod Fishery. This momentous event had resulted in 40,000 job losses in 5 different Canadian provinces and had required a relief package worth several billion dollars which had been dispersed to the local coastal communities. Since then many economists have been providing various explanations and theories as to what has caused this huge collapse. One theory which can be associated and quite possible provide an explanation to this is Rational Choice Theory.
Rational Choice Theory is a belief that states that individuals always make logical and rational decisions. These decisions provide people with the greatest benefit and are made in individuals own self-interest. It also assumes that all individuals try to actively maximize their gain in any situation and therefore consistently aim to reduce their losses. This theory is based on the idea that all humans base their decisions on rational calculations, act with rationality when choosing and aim to increase either pleasure or profit. According to CanadianHistory “Many other countries, such as France, Spain and Portugal, joined in the fishing banks for the summer seasons and established summer bases to salt and process the fish”. This is clearly evident that the fishermen at the time were aiming to maximise their fish catch in order to pursue their own self-interest. Although this may provide a short term gain for the