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Synopsis on Rational Choice
In this synopsis I intend to analyse the rational choice model and its relevance in economic theory, using the utility theory as an example. Firstly I will define and explain rational choice and then introduce utility theory. From there I will move on to outlining some of the major criticisms of the rational choice model.
Rational choice is a psychological model directed at testing and analysing the rationality of individuals decisions. It was introduced to economics by John Mill, who adapted Bentham's pleasure-pain principle.
For an individual to behave rationally, he would have to 'att…
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