Logical Structures of Criticisms of Rational Choice Theory and Their Defects

Abstract

This paper picks up main criticisms of rational choice theory, analyzes their logical structures, and determines which criticisms should be accepted. The criticisms are classified in the following seven categories : argument that preferences depend on cultural contexts ; the prospect theory ; skepticism about empirical validity of the assumption of rationality ; skepticism about the assumption of common knowledge ; argument that rational choice theory does not succeed in explaining social phenomena ; skepticism about multiple equilibria ; argument that social phenomena do not necessarily consist of social actions.The first four criticisms are about assumptions of rational choice theory, and they are not necessarily insignificant to the development of sociological theories. They are futile, however, if we doubt empirical validity of assumptions of a theory without considering what we can explain with the assumptions. The fifth criticism is very important in enriching rational choice theory, so we have to answer the criticism properly. We can ignore the sixth criticism if we interpret the problem of multiple equiriblia in positive ways. The final criticism has not offered an alternative theory that has stronger explanatory power than rational choice theory, so we cannot accept its claim. We conclude, from the above analysis of the criticisms, that the key to enriching rational choice theory is to answer the fifth criticism properly.