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Dominant Approaches and Ideas - Part 2: Rational Choice Theory

This document discusses two dominant social science approaches: rational choice theory and institutionalism. It provides background on the development of rational choice theory since the rise of capitalism and Adam Smith. Rational choice theory posits that social behavior results from individuals making rational decisions to maximize their interests. The document also outlines the development of institutionalism from the establishment of organizations throughout history. It distinguishes between old institutionalism, new institutionalism, and historical institutionalism, and discusses how institutions shape society. A key thinker discussed is Michel Foucault and his views on how institutions exercise power over individuals and society.

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0% found this document useful (0 votes)
1K views3 pages

Dominant Approaches and Ideas - Part 2: Rational Choice Theory

This document discusses two dominant social science approaches: rational choice theory and institutionalism. It provides background on the development of rational choice theory since the rise of capitalism and Adam Smith. Rational choice theory posits that social behavior results from individuals making rational decisions to maximize their interests. The document also outlines the development of institutionalism from the establishment of organizations throughout history. It distinguishes between old institutionalism, new institutionalism, and historical institutionalism, and discusses how institutions shape society. A key thinker discussed is Michel Foucault and his views on how institutions exercise power over individuals and society.

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rhey
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We take content rights seriously. If you suspect this is your content, claim it here.
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Disciplines and Ideas in the Social Sciences

1
Dominant Approaches and Ideas – Part 2

ST. ANDREW MONTESSORI AND HIGH SCHOOL INC.,


NANCAYASAN, URDANETA CITY, PANGASINAN
S.Y. 2020-2021

Dominant Approaches and Ideas – Part 2


The following are the objectives for this module:
1. Predict the social consequences of decision making based on scarcity; and
2. Examine the constitutive nature of informal and formal institutions and
their actors and how it constrains social behavior.

Rational Choice Theory


The Development and Origin
Rational Choice Theory is primarily a part of economic theory as well as that of
social theory. According to Catherine Herzfeld, the ‘rational’ approach to things started
around the dawn of the Cold War. With the dawn of this new intellectual age, thinkers,
economists, philosophers and other prominent members of society have shifted to the
‘rational’ way. According to Blume and Easley, rational choice had been around ever since
the rise of capitalism through the rise of Adam Smith. They write:
The use of the rationality principle in economics certainly predates the
utilitarianism with which it is so often conflated. Adam Smith ([1789] 1976, p. 19)
describes, in his discussion of the division of labor, a tribe of hunters in which one
person is particularly deft at making bows and arrows. He frequently exchanges
them for cattle or for venison with his companions and he finds at last that he can in
this manner get more cattle and venison, than if he himself went to the field to catch
them. From a regard to his own interest, therefore, the making of bows and arrows
grows to be his chief business, (Blume and Easley, 2007).
Therefore, it would be inaccurate to point out that rational theory began only
recently, since the basic premise of the theory has already been in existence since before.

The Theory
The basic premise of rational choice is that social behavior and attitude is the result
of individual actions and choices, where each individual bases his decision on rational
considerations. If one thinks about it, rational choice seems to have been around for quite
some time, since the primary inclination of a human being is to choose what is most
rational. However, rational choice as a theory applied in both sociology and economics
has been applied only recently. Rationality could take various forms, but applied to
sociology, it becomes the identity of society. It comes in close relation with the premise
that society is the sum of all individuals. This includes individuals’ dispositions and
choices.
Institutionalism
The Development and Origin
Institutionalism as a theory is very broad, since it covers a number of subtopics
that deal with different aspects of society. Their one similarity is that all of these sub-topics
deal with the function and relevance of institutions. As a theory, it comes from the
establishment of organizations throughout history that led to the creation of what we call
an institution. Examples of institutions are schools, hospitals, correctional facilities and many
other sectors of society. All of these sectors originate from the gradual establishment of a
structured body that governs over a certain point in society.

Course Module
Key Thinker: Michel Foucault
One of the major thinkers when it comes to the study of institutional theory is the
French philosopher and sociologist Michel Foucault. His works include Discipline and
Punish, The Birth of the Clinic, History of Sexuality and other works that deal with the
function and administration of various institutions over society. For example, the work
Discipline and Punish deals with the institution of the correctional facility where he
mentions that institutions are ‘instruments of power’ and that established institutions
determine largely the entire character of society. For Foucault, the purpose of institutions
would be to create docile and obedient bodies or citizens, thereby making society a
subject of the power of institutional forces.

The Theory
There are three important kinds of institutionalism:
 Old Institutionalism
 New Institutionalism
 Historical Institutionalism

According to William Richard Scott:


Institutions are social structures that have attained a high degree of resilience. They
are composed of cultural-cognitive, normative, and regulative elements that together
with associated activities and resources, provide stability and meaning to social life.
Institutions are transmitted by various types of carriers, including symbolic systems,
relational systems, routines, and artifacts. Institutions operate at different levels of
jurisdiction, from the world system to localized interpersonal relationships. Institutions by
definition connote stability but are subject to change processes, both incremental and
discontinuous. (Scott, 1995).
Differentiating between old and new institutionalism can be known through their
individual focus.
Old institutionalism focuses on the effects of institutions, as well as general rules,
schemes, and factors, on the scale of the global or local economy. (Scott, 2008) This refers
to the adaptation of businesses to the whims of the local institutions such as the political
body, schools, etc.
New institutionalism, this focuses on the sociological view on institutions, the
way these institutions co-operate with each other and how they affect society as a
whole. (DiMaggio and Powell, 1983) This is what we call the ‘social powers’ that influence
the flow and daily living of society. Take for example the institution of the political body.
Lawmakers and enforcers have significant contributions to the functioning of society for,
without this institution, society would fall short on the need for peace and order. On the
other hand, without the institution of the school, the members of a society would be
inadequately educated, and would lead to negative effects when it comes to the over-all
well-being of society. Thus, new institutionalism seeks to understand further how these
institutions could shape the value of life a society has.
Historical institutionalism it traces the progress of both socio-economic
behavior in society through the growth and history of an institution. According to
Charles Tilly, historical institutionalism is a method for measuring “big structures, large
processes, and making huge comparisons.” (Tilly, 1984) The value of historical
institutionalism is that it shows how an institution can reflect the changes within
society, and how one need not to extensively pursue a conclusion based on multiple
observations on society, but rather can be focused on one body that sufficiently accounts
for a proper description of society’s progress. That is why historical institutionalism can be
regarded as a combination of both old and new institutionalisms.

Course Module
Disciplines and Ideas in the Social Sciences
3
Dominant Approaches and Ideas – Part 2

Glossary
 Historical Institutionalism – it traces the progress of both socioeconomic behaviors in
society through the growth and history of an institution.

 Institutionalism – an approach that views institutions as humanly devised constraints


that structure political, economic, and social interactions.

 New Institutionalism – focuses on the sociological view on institutions, the way these
institutions co-operate with each other and how they affect society as a whole. (DiMaggio
and Powell, 1983)

 Old Institutionalism – focuses on the effects of institutions, as well as general rules,


schemes, and factors, on the scale of the global or local economy. (Scott, 2008)

 Rational Choice – is a product of scarcity and demand the people to make the right and
rational choice to maximize the use of its resources. The basic premise of rational choice
is that social behavior and attitude is the result of individual actions and choices, where
each individual bases his decision on rational considerations.

References
Allingham, Michael (2002). Choice Theory: A Very Short Introduction. Oxford:
Oxford University Press. Amadae, S.M. (2003). Rationalizing Capitalist Democracy: The Cold
War Origins of Rational Choice Liberalism. Chicago: University of Chicago Press. DiMaggio,
Paul J. and Powell, Walter W. (1991) ‘Introduction’. In P. J. DiMaggio and W. Powell (eds.)
‘The New Institutionalism and Organizational Analysis’, pp. 1–38. Chicago: University of
Chicago Press. Meyer, Heinz-Dieter and Brian Rowan (2006) The New Institutionalism in
Education. Albany, NY: SUNY Press. Scott, W. Richard (2008) Institutions and
Organizations: Ideas and Interests. Los Angeles, CA: Sage Publications. Tilly, Charles (1984)
Big Structures, Large Processes, Huge Comparisons. New York: Russell Sage Foundations.

Activity:
Write your answer in a 1 whole sheet of paper (yellow pad or long bond paper).
1. Site YOUR OWN EXAMPLE situation how can you apply rational choice theory in your daily
life as a student.
2. Why is it important to us think logically and critically?
3. How DO YOU THINK critically and logically? Explain.
4. What happen to the society without these established institutions?
5. How can these established institutions help in the development of the society?

Prepared by:

Reynaldo C. Paris
Subject Teacher

Course Module

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