Rational Choice Theory
Rational Choice Theory is a foundational concept in economics, political science, and sociology that models human behavior as the outcome of rational decision-making to maximize utility or self-interest. It assumes individuals have consistent preferences, access to relevant information, and make choices by weighing costs against benefits to achieve optimal outcomes. This theory is widely applied to analyze behaviors in markets, voting, crime, and social interactions.
Developers should learn Rational Choice Theory when working on applications involving economic modeling, game theory, or behavioral analysis, such as in finance, e-commerce, or social network algorithms. It provides a framework for predicting user behavior, optimizing decision-making systems, and designing incentive structures in software, making it valuable for roles in data science, AI, and product management.