Rational Choice Theory

Text-only Version: Click HERE to see this thread with all of the graphics, features, and links.



Fire
I'm going to assume that everyone who reads this thread and replies to it at least has some basic knowledge about what Rational Choice Theory is. If you do not feel free to look it up or PM me about it, but I have enough typing to do as it it so I ain't going to explain it again.

The Voting Paradox
I'll explain this briefly for those who don't know it.

Let's assume for a moment that people behave rational, in an economic sense, all the time (Hence RCT). The basic assumption here is that a voter will act like a homo oeconomicus (acts rational).

Now let's look at voting: If a voter is a homo oeconomicus that means that he will vote when the gains outweigh the costs (as is a basic principle of economics and being rational)

I'll put it like this: R=p*B-C

Where
R stands for the result (to go and vote or to not go -stay home-)
p stands for the chance that your vote makes the crucial difference
B stands for the difference in gain when the government you want comes to power
C stands for the costs made by going to vote

Take a look at the Costs (C):
* Before the elections:
- Gathering Information (reading papers, watching the news and so forth): granted some ppl do this even when there are no elections coming so this is a small cost for those people (Again take in mind that it would not be rational to go vote without having enough information)
- Registering to a voting list (especially in the US this one applies)

* During the elections:
- Movement costs: you have to get to the voting station
- Opportunity costs: you could stay home and watch football on TV or go to work and make money...

Now the Gains (p*B):
* The difference between candidates (B):
- Only one party (former soviet republics): your vote has no effect
- parties with similar programs: which ever party wins it makes little difference
- parties with very different programs: big difference depending on who wins

* The chance of your vote being the crucial one (p):
- With two parties and 3 voters: you have a 50% chance of being the all deciding voter
- With two parties and 9 voters: you have a 27% chance
- With two parties and 101 voters: you have 8% chance

Meaning in a normal election P is almost 0
When P is almost 0 that makes p*B (the Gains remember) almost 0
so that makes R=p*B-C < 0 (If C>0)

Which comes to the conclusion:
The Rational voters stay home!

Now seeing as this is certainly not the case in almost every country in the world.

Why is this the case:

A) Rational Choice Theory is plain wrong (I don't buy that)
B) The formula is incorrect we should an extra element called 'D'. If you think so then please give me your idea on what 'D' is
C) People behave irrational, which is doubtful when economic models who use the same basic principles work.

So this is one of the things I had to study today and wanted to share.
I'd be amazed if this thing gets more than 5 decent replies, but hey I felt like sharing so!

Bardock42
Now, here's my opinion. The formula is flawed. It is too simple...many factors are missing. The Joy one gets from voting and participating in politics. The hapiness one feels having voted. There are a lot of reasons why one want to vote. Then there's another problem, a rational being that thinks along those lines will also think....but if I do that all other rational beings will do that too, and since rational beings (just cause they are rational like me) wlll vote as I do my party would lose so all rational beings should vote ergo I will vote.

There's really a lot more to it than this. Pretty funny theory though. (Oh by the way all humans are rational, it's just that rational is not always the same.

Fire
I thought you might like it.

I didn't get your last sentence. But there is indeed a part about the fact that if everyone thinks like that (rationaly not going to vote, the one that comes up with it first and goes voting anyway will decide everything. Has to do with Game theory)

Your first suggestion is the adding of a new element: most commonly used way to adapt the voting paradox

overlord
Oh.. I take the time to vote..
I'm too rational to stay in a house and do something boring like staring at a TV.

Bardock42
Originally posted by Fire
I thought you might like it.

I didn't get your last sentence. But there is indeed a part about the fact that if everyone thinks like that (rationaly not going to vote, the one that comes up with it first and goes voting anyway will decide everything. Has to do with Game theory)

Your first suggestion is the adding of a new element: most commonly used way to adapt the voting paradox

Yeah, it's pretty cool....although I find it a little to well simple , as I said before. It makes no sense to me how one can assume that those three figures are all ther is to human decisions.

My Last statement was just saying that what you think is rational migt not be rational too me. That's another flaw...the rational they are talkign aboot its rather subjective.

the adding of one new element won't cut it though. I believe that all humans base their decisions on rational thoughts (or what they take to be rational), but the process of decision making is so complex...there are probably several hundred or more variables that have to be considered.

As for the "first to vote" well I don't think that he is that important...but the behaviour of all other voters is a figure that has to be taken into account, which is why this Theory is fated to fail right away. I like the genereal Idea of it though. Who made it?

Ushgarak
This is really just a very complex way of pointing out that one vote has very little effect.

The rational people vote anyway because they know that if everyone felt like that, nothing would ever get done.

That your vote on its own is only one amongst many is a basic principle understood by everyone who votes, so I am not sure why we need to make such a mathematical fuss about it.

It's not a paradox unless you make the assumption that people only vote because they think their vote alone will make the difference. That is an error, hence there is no paradox.

overlord
Yeah, people can't even comprehend the variables that come across in life and people's decisions. Trusting on a simple theory like this is laughable.

Ushgarak
That and that homo economicus is highly questionable, of course. The only people that think that people react irrationally to the ultimatum game are economics students.

Bardock42
Originally posted by Ushgarak
This is really just a very complex way of pointing out that one vote has very little effect.

The rational people vote anyway because they know that if everyone felt like that, nothing would ever get done.

That your vote on its own is only one amongst many is a basic principle understood by everyone who votes, so I am not sure why we need to make such a mathematical fuss about it.

It's not a paradox unless you make the assumption that people only vote because they think their vote alone will make the difference. That is an error, hence there is no paradox.

I agree with you that this Formula is useless....but I do like the idea to put human decisions in mathematical bounds. It could maybe be done. That's why I find it fascinating.

Ushgarak
It'll be ethical calculus next, mark my words...

Bardock42
Originally posted by Ushgarak
It'll be ethical calculus next, mark my words...

I am looking forward to it.

Fire
Wow it seems to have some effect. As Bardock I too think the thing is flawed but it still is an interesting theory in my opinion. I'm gonna see if I can take an elective about it next year.

overlord
Ah.. Just trust in Paris Hilton when she says we should all vote!
A shame though that she doesn't do it herself to set the example.

Bardock42
Originally posted by overlord
Ah.. Just trust in Paris Hilton when she says we should all vote!
A shame though that she doesn't do it herself to set the example.
I very much disagree with you...it would be a shame if she'd vote herself.

overlord
Hahaha, I know what you mean..

Shakyamunison

mechmoggy
Originally posted by Ushgarak
It'll be ethical calculus next, mark my words...

Oh no, and I've done no revision! eek!


I hate voting. I always feel guilty about not caring enough about politics to actually look in depth at each parties viewpoints on key issues.

Then when the election comes round, I usually end up using my gut feeling about the person...



...well that, and I tend not to vote for people who physically repulse me.

Text-only Version: Click HERE to see this thread with all of the graphics, features, and links.