Rational Choice Theory Overview

Rational choice theory was “pioneered by sociologist George Homas, who in 1961 laid the basic framework for exchange theory. During the 1960s and 1970s, other theorists like Coleman, extended his framework and helped to develop a more formal model of rational choice. Even Marxists have come to see rational choice theory as the basis of a Marxist theory of class and exploitation”(Crossman, 2014).

 
James S. Coleman was a contributor to Rational Choice Theory. He founded a journal Rationality and Society based on rational choice perspectives as well as published the book Foundations of Social Theory based on the same perspective (Ritzer, 2013). The main foundation of the Rational Choice theory focuses on social systems, where people act toward goals in a purposive manner and both goals and actions are shaped by values. A person performs actions that will maximize utility or satisfaction of their needs illustration wants (Ritzer, 2013).

              This video explains more about Rational Choice and how it compares with Exchange Theory. 

Also, this website contains reading containing more in depth readings about Rational Choice theory. As well as, provides examples of how this theory relates to other subjects.

 http://www.enotes.com/research-starters/sociological-theory-rational-choice-theory 

Illustrating Rational Choice Theory in Present Day 

Rational Choice theory can be applied to cell phones. Cell phones have become a huge part of society. It is often very rare to spot a person without a cell phone in its various forms. As mention in our textbook, “actors have resources and those resources are of interest to others. Therefore, actors engage in actions that involve others and a system of action, emerges among them” (Ritzer, 2013). This has transpired in society by people using cell phones to seek maximize happiness from the social system that has been established by certain name brands of cell phones. 

  

  

Cell phone brands such as Apple and Samsung are two of the most popular phones on the market today. Both presents people with a cost vs. benefits dilemma. For example, when a person buys either name brand, they are part of the higher social system, maximizing the benefit of owning a trendy resource others want to own as well. However, at what cost will this resource set back the person. It’s been known that newer models of the phones tend to come out every year. Also, accessories that work with the phones or are work alongside the phones are notorious for being highly costly. It is a great question of wonder how far a person is willing to weight the cost vs. benefits of maintaining the status in a social system, in order to continuing maximizing their own personal benefit.

Rational Choice theory can also be applied to the influence of social capital within a family. As mention in our textbook, “family backgrounds are separable into three different components, financial capital, human capital, and social capital”(Farganis, 2014, p.238). Financial capital is measured by the family’s wealth or income, human capital is measure by parent’s education and provides norms for the child to learn, and social capital within a family various depending on how importance it is for that certain family (Fargains, 2014). Social capital can be an important resource for individuals since it affects greatly their ability to act and their perceived quality of life (Fargains, 2014). Furthermore, “there are important implications of this public good aspect of social capital that plays a part in the development of children and youth”(Fargains, 2014).  

Public goods such as cell phones, cars, houses, and other material things all belong in the social capital items that people seek to capitalize on. Rational Choice theory points out this learn behavior starts in childhood from their families. As mention above, families work within three capital systems, financial, human, and social, each one contributing to the consequence of rather or not those set norms developed in a certain family will result in their children following the same suit when they reach adult hood. 

The above image points out children ten years ago, use to ask for a public good and regardless of price, they were happy with the advantage it brought them. Nowadays, children who ask for public goods, request the most current popular public goods because that is the social capital good they view other children receiving from their parents. In modern times, this request can go two different ways. A family who has establish financial, human, and social norms based on, viewing public goods as secondary compare to getting an education, a good paying job, and then buy public goods as needs be, will not give into the request and buy the child a social capital good only based on what they can afford. On the other hand, a family who has established financial, human, and social norms based on viewing social capital as the only method to maintain a high status in the social system will not have a problem in answering the child’s request. These types of families tend live in upscale homes, drive over price cars, and own fancy public goods just to show that they beyond in a certain status quo. 

In closing, Rational Choice theory is very much part of today’s society, influencing the ways people act within society. Also, influencing how people act towards set goals they have in order to gain the most benefits when reaching those goals. As well as, shaping social capital in families, by performing certain actions, that have lastly affects on their children, who either follow the same views as their parents, or become polar opposites.

http://www.wisegeek.com/what-is-social-capital.htm

This website provides further reading on how Rational Choice theory affects different areas of social capital things.

References:

Crossman, A. (2014, December 15). How Rational Choice Theory Explains Your Economic Decisions. Retrieved April 30, 2016, from http://sociology.about.com/od/Sociological-Theory/a/Rational-Choice-Theory.htm

Farganis, J. (2014). Readings in social theory: The classic tradition to post-modernism. New York, NY: McGraw HIll.

Ritzer, George. 2013. Contemporary Sociological Theory and Its Classical Roots: the basic. New York, NY. McGraw Hill.