The many faces of rational choice theory

Abstract

In recent decades the epistemic potential of 'rational choice theory' has been profoundly questioned. Skepticism towards economic man and his 'imperialistic attitude' has been advocated by behavioral economists, psychologists, and philosophers for several decades now. Not only does the rejection of rational choice theory appear to follow from our common sense. With the breakthrough of behavioral economics, rational choice theory has also become challenged on empirical grounds. Although these critiques may appear to be prima facie justified, it is significant that many appraisals of rational choice theory are conducted independently from the actual context in which the theory is applied. This often results in an underestimation of the pragmatic usefulness of rational choice theory in the context of different scientific practices. My dissertation points to the weaknesses inherent in contextindependent appraisal. The overarching goal is to seek a comprehensive understanding of 'rational choice theory' against the backdrop of actual economic practices. This, I believe, will serve as strong basis for more nuanced appraisal of the theory.