Rational Choice Theory
The principle in macroeconomic theory that states: all stakeholders in the economic society will act in deference to their own self-interests first and foremost at all times.
What does this mean to you?
Rational Choice Theory is actually very handy in economics because it demonstrates the way all things act in the real world and not just the eggheaded world of economists and other think-tank gurus who never look outside a book to see how things really are for the average person or business. Rational Choice Theory is the principle that explains how everything acts on our planet and it is how our markets and economies evolved as a result over the course of time. We know that every single organism on the planet acts strictly to preserve itself - the survival instinct. We know that people will act to preserve their own hides first and foremost, so this gives us a 100% reliable way of knowing how rational people - organized in groups - will, more often than not, act when presented with a proposition to purchase and use a product or service. Rational Choice Theory says we know you want it, because it is something we want too. All that is left to decide is whether or not the price one must pay is worth paying. That's the rub, the beauty and the risk. We all know that there is a product or service that everyone needs and there are products and services you don't need, but this changes over time due to your own circumstances. The more we know about those circumstances, the more we are able to decide what would be valuable to the society at any one time. This is how markets evolve and it is how markets will always evolve and work with absolute perfection. Everyone can be relied upon to act in their own best interest and that best interest can be combined to create powerful outcomes (for good and for things that may not seem so good - it all depends which side of the deal you are on). In the end, it is all good and that is why Rational Choice Theory is the beginning and end from which Clint Lovell created the fundamental operating principles governing The Fix.
Rational Choice Theory is discussed throughout the entirety of The Fix and the other two volumes pertaining to Capitalism Version 2.0.
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