POL 314 Lecture Notes - Lecture 2: Chocolate Cake, Free Rider Problem, Consumer Choice
20 May 2020
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Deductive approaches: rational choice & strategic thinking lecture #2: instrumental rationality: a decision is rational as far as the choice of means are concerned; not the end. All that is assumed about the ends is that they are desirable in some sense but what individuals find desirable can vary a great deal. Not necessarily synonymous with wealth/money or material things in general: origin: utility maximization in micro-economics (utility and self-interest, consumer theory, and. If x y in the set {x, y, z}, it still is the case that x y in the set {x, y, z, z"}: ex. {x, y} & their corresponding utilities are x and y, and x happens with a probability p, then: Prospect theory ch. 18: rational choice/formal theory, models that make use of instrumental rationality are often said to be applications of the rational choice paradigm which originated in economics.
