Rational Choice Study Guide Pol S 270 Study Guide – POL S 270 Rational Choice Lectures The following study guide is to be used in conjunction with the readings, lectures and section discussions. Their purpose is to facilitate the learning process, not substitute for it. Some of the terms and questions presented in this study guide will not be discussed directly in class; they can only be found in the readings. (There is also a chance we won’t cover all the terms depending on the progress of the class.) Also, some of the questions don’t have definitive answers but are presented to stimulate your thinking. Important Terms Define and identify the significance of each of the following terms: politics economics political economy markets dead weight costs externalities production possibility frontier Pareto optimal indifference curves price mechanism public goods principal-agent problem preferences instrumental rationality assumptions of rational choice utility maximization thin rationality thick rationality consistency requirement expected value risk uncertainty transitivity money pump framing prospect theory methodological individualism homogeneity (universality) assumption paradox of not voting consumption value of voting (Ordeshook’s “D”) Schwartz’s solution (to paradox of not voting) price discrimination rent (economic rent)
has intentionally blurred sections.
Sign up to view the full version.