When people judge the value of an outcome and multiply it by how likely something is to happen, people are making use of the rational choice theory.
Rational choice theory can be applied to many fields such as economics, psychology, and philosophy. This theory tells that people use their own interests to make decisions that are in their best interest. Individuals consider their options and make the choices they believe will work best for them.
How individuals determine what works best for them is a matter of personal preference. Rational choice theory in social interaction clarifies why people enter and exit individual and group relationships.
Rational choice theory states that individuals are in control of their decisions. They do not make decisions based on unconscious impulses, traditions, or environmental influences. They use rational reasoning to weigh outcomes and potential benefits.
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