Rational Choice Institutionalism

Rational Choice Institutionalism is a theory that explains how institutions—like laws or rules—shape people's decisions based on their self-interest. It views individuals as rational actors who weigh the costs and benefits of their actions within the context of existing rules. Institutions matter because they influence incentives, guiding behavior in predictable ways, and can create stability or change. Essentially, this approach analyzes how rules and structures affect decision-making processes, ensuring individuals act in ways that maximize their advantages while also reinforcing or modifying the institutions themselves over time.