economic theory of public choice

The economic theory of public choice examines how individuals in government make decisions, much like consumers and businesses in a market. It suggests that politicians and bureaucrats, driven by their own interests—such as re-election or job security—may prioritize personal gain over public good. This theory highlights that public decisions are influenced by the same economic principles as private choices, emphasizing the importance of incentives and consequences in governance. By understanding these motivations, we can better analyze how policies are formed and the efficiency of government actions.