Always Rational Choice Theory? Lessons from Conventional Economics and Their Relevance and Potential Benefits for Contemporary Sociologists

Abstract

The paper reconsiders the problem of whether traditional economics constitutes or comprises rational choice theory in the sense of a comprehensive economic model of and approach to human action and society. Rational choice theorists in economics as well as sociology and beyond claim that their theory and approach is founded in, derived from and justified by classical and neoclassical economics, especially its major figures. This reconsideration casts strong doubt on such claims to “rational choice” traditional economics. It argues and shows that both classical political economy and neoclassical economics essentially is or has no rational choice theory. This applies to virtually all the major economics classics and neoclassics, with some exceptions among their lesser counterparts. The paper aims to contribute to understand better the origins and rationale or lack thereof of rational choice theory and the economic approach to behavior and their implications for its sociological version. The rationale/benefit of this analysis and its finding for contemporary sociologists is three-fold. The first relating to rational choice sociologists is showing that classical/neoclassical economics is not rational choice theory and does not represent their theoretical foundation and precursor. The second pertaining to economic sociologists is demonstrating that conventional economics has elements of economic sociology, especially more than of rational choice theory. The third concerning other sociologists is to make them more familiar with the original ideas of conventional economics as distinct from their interpretations by contemporary economist pursuing the economic approach and rational choice theory.