rational choice theory http://plato.stanford.edu/entries/economics/#5 individual rationality: the barebones theory of rationality takes the agent's preferences (rankings of objects of choice) to be rational if they are complete and transitive collective rationality and social choice although societies are very different from individuals, they evaluate alternatives and make choices, which may be rational or irrational. game theory when outcomes depend on what several agents do, one agent's best choice may depend on what other agents choose. although the principles of rationality governing individual choice still apply, arguably there are further principles of rationality governing expectations of the actions of others -- http://en.wikipedia.org/wiki/Rational_choice_theory rational choice theory makes two assumptions about individuals' preferences for actions: completeness:all actions can be ranked in an order of preference transitivity:if action a1 is preferred to a2, and action a2 is preferred to a3, then a1 is preferred to a3 other assumptions: an individual has full or perfect information about exactly what will occur under any choice made an individual has the cognitive ability and time to weigh every choice against every other choice -- http://en.wikipedia.org/wiki/Rationality the German sociologist Max Weber proposed an interpretation of social action that distinguished between four different types of rationality. the first, which he called Zweckrational or purposive/instrumental rationality, is related to the expectations about the behavior of other human beings or objects in the environment. these expectations serve as means for a particular actor to attain ends, ends which Weber noted were "rationally pursued and calculated." the second type, Weber called Wertrational or value/belief- oriented. Here the action is undertaken ....... -- --

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