Rational choice sociology: heuristic potential, applications, and limitations

Abstract

In this chapter, I outline sociological rational choice (RC) theory, discuss its relationship with the broader approach of analytical sociology, and address some misunderstandings that repeatedly occur in discussions and applications. The theory has an axiomatic foundation which provides for rigor, clarity, and empirical testability. The micro-macro link and the often-cited non-intended or 'paradoxical' consequences of social actions are much-debated issues of the RC research program. Furthermore, I consider applications of RC theory in non-strategic and in strategic situations using game theory. With all these elements, RC theory is at the core of a more rigorous perspective in sociology. However, there are also systematic problems in applying the theory to empirical observations that show the limits of RC theory. These 'anomalies' are challenges for RC theory and stimulate the development of alternative theories of bounded rationality. In the final section, I suggest practical step by step guidelines for researchers when applying RC theory to sociological investigations.