Assumption Of Rational Behavior Essay

This idea of a rational calculation of the advantages and disadvantages of crime runs parallel with the Rational Choice Theory offered to us by

Kahneman’s article is an analysis of intuitive thinking and how it guides our decision-making. Although primarily aimed at the field of psychology, it is an interdisciplinary article with applications in economic theorising. Kahneman attempts to differentiate between two systems of thought, one of intuition (system 1) and one of reasoning (system 2), and argues that many judgements and choices are made intuitively, rather than with reason (a slower and more deliberate process). Intuitive decision making, which encompasses heuristics, although generally more efficient and rapid, makes the agent potentially subject to errors due to framing effects or violations of dominance. The analysis of the studies and theoretical situations also provides criticism of the commonly held model of the rational agent within economics. The article also further conceptualises Kahneman’s theory, the Prospect Theory (Kahneman & Tversky, 1979), which has descriptive applications of people’s choice in decision-making situations involving risk and known probability of outcomes. These situations are typically unexplained by the more normative rational agent model.

My example of the rational choice theory of today is the mexican drug controls of December 2011. The drug trafficking organization in Mexico was highly rational, self-interested actors seeked to maximize profit.

First, we assume that all of these entities have unlimited wants. This assumption forms the basis of economics. It is the study of how entities try to fulfill these unlimited wants when confronted with limited resources. Second, we assume that all of these entities are rational actors. We assume that they typically act in ways that will help to achieve their goals. This allows us to understand their actions which we would not be able to do if we assumed that they constantly acted on the basis of whims.

In this essay I will be comparing and contrasting the Rational Choice Theory(s) and the Trait Theory(s). We will start with the history of the two theories and progress toward some of the individual principles in the theories. Next step will be explaining how each theory contributes to criminal behavior. My closing paragraph will conclude the essay as well as give detailed information on how society punishes the crimes committed.

Rational choice theories are among the fastest growing theories in social science today. Many sociologists and political scientists defend the claim that rational choice theory can provide the basis for a unified and comprehensive theory of social behavior. What distinguishes rational choice theory from other forms of theory is that it denies the existence of any kinds of action other than the purely rational and calculative. All social action can be seen as rationally motivated, as instrumental action, however much of it may appear to be irrational or non-rational. I believe that the Rational Choice Theory would be most beneficial in the reduction or control of crime.

The third principle of individual economic decision-making relates to marginal decision-making. Rational people will think at the marginal level, making small changes or tweaks in their plans to achieve the desired objective. Rational people normally have a certain system or method he/she uses to achieve their objective and they understand that sometimes small changes must be made to accomplish this.

Economists have often modelled human decision makers as completely rational. According to this model, rational people know their own preferences, gather and accurately process all relevant information, and then make rational choices that advance their own interests. However, Herbert Simon won a Nobel Prize in economics by pointing out that people are rational, but only boundedly so in that they seldom gather all available information, they often do not accurately process the information

According to the rational choice theory human actions are based on rationality. In other words an individual that commit a crime is rational and he/she thinks that the decision that they are taken is the one that bring the most benefits. Crime is committed for a rational person after the pros and cons from disobeying the law are evaluated.

He argued that every human being has unique preferences which greatly influence them when making choices (Breen and Rottman 1995). People are mostly motivated by money and are likely to carry out a cost-benefit analysis before settling on a decision. It is based on the following premises: human behavior is based on rational calculations, human beings act with rationality when making choices and these choices are aimed at maximizing gains or pleasure. In a similar manner, Interactionist Theory (IT) is used to study social interactions among people. It does not study the entire population at once, but rather studies smaller social groups. It focuses on how individuals act and how they make behavioral choices depending on the way they interpret situations (Hindess, 1998, p.42). From another perspective, it states that human beings only react to social stimuli. As such, they are social actors, and must adjust their behaviors in consideration to the behaviors of other human

Rational choice theory accepts that all individuals attempt to effectively expand their preference in any circumstance and in this way reliably attempt to minimize their misfortunes. The hypothesis depends on the possibility that all people construct their choices in light of sound figuring’s, act with discernment when picking, and intend to increment either delight or benefit. Rational choice theory likewise stipulates that all unpredictable social wonders are driven by individual human activities. Accordingly, if a business analyst needs to clarify social change or the activities of social organizations, he needs to take a look at the balanced choices of the people that make up the entirety.

Ernest Bormann's Symbolic Convergence Theory offers a promising method of looking at small group interaction and cohesiveness. When individuals who are not familiar with each other come together for the sake of achieving a common goal, be it a group in an organization or students working on a school project, the symbolic convergence theory presents an understandable and generally accurate stance on how cohesiveness within the group is attained.

The concept of ‘rationality’ has been talked through the centuries. According to Grey (2013), rationality is a big question because of this proposition which has the meaning and difficulties seem to be defining of a whole set of issues which have resonated through both organisation theory and practice ever since. And rationality is the basis of a decision, rational decision makers are objective and logical, they reach the goal that maximises the value. Not only rationality is important to organisations, and also it can be identified in various kinds of management theories. This essay will introduce the different aspects of the concept of ‘rationality’ and make explanations that how these are recognised in different management theories.

However, this idea can be a divergence from reality, as in real life it is difficult or even impossible to find such agents that will make perfectly rational decision as reflected by irrational human behaviour. Though the assumption of individuals act rationally is important when analysing economics and interactions. This is because if we don’t assume everyone act rationally, if there’s a loss of welfare, we will not be able to decide whether it is the result of flaw in the structure or just because of irrationality.

One of the facets of living within civilized society is that there are certain norms and social conventions that people must follow. Frequently, there is a large effort on the part of government, financial, and social institutions to keep people doing most of the same thing as others going to work, driving cars, buying homes, etc. Despite the fact that people engage in these efforts individually, the simple fact that they are all attempting to do the same thing, in much the same way, is indicative of the fact that they are engaged in collective behavior. THESIS: Those who are able to overcome collective behavior and allow for their individuality to determine their own outcomes exemplify the best of human nature.