Rational Choice Theory in Urdu / Hindi

“Rationalism” is a theory that focuses on the behavior of Individuals. It means that the unit of analysis for Rationalists is “Individual”. One of the core assumptions of Rationalism includes:

1. All humans are essentially self-interested actors. Human actions and behavior are not dependent on culture, gender, race, or ethnicity.

2. Faced with the same set of circumstances, we can expect all humans to make basically the same decisions.

3. Rationality is a universal trait.

4. Self-interest is a context-dependent.

5. Individuals do strategic calculations before taking any decision.

6. There Is also uncertainty and possibility of bad choices. This is due to the lack of proper and adequate information.

7. While making decisions, individuals also face many constraints. The important constrains which the individuals face are two:

i. Economic

ii. Institutional

The explanation of these constraints is given in the video.

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