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Rational Choice Theory : Individual (Proposition of Preference: …
Rational Choice Theory : Individual
bounded Rational Choice Theory
satisficing rather than maximizing
Heuristic
Social Exchange Theory : individuals interaction
Geroge Homan, father of Social Exchange Theory
Human Relationship formed by internalized cost-and-benefit calculation based on each individual involved
views behaviors self directed and internally processed
Human Relationships: Profit = max Benefit - min cost
Propositions
People make rational decision regarding to behavior
rational decision based on the perception of net return which is internally calculated from Human Minds
However , benefits and cost are subjected which is varied according to culture norms
family, partners and social relationships
relationship interaction determined by rewards (social approval) or punishments(social disapproval)
social approval rewarded by
Money
positive social gesture
smile
an individual more behaved positively is not necessarily rewarded more from relationships
social disapproval punished by
angry
social humiliation
negative social gesture
Proposition of Preference: individual
Completeness: A>B >C>D, no loop back from D>A, otherwise, it is a cyclic, no decision can be made.
P1
Relevant alternatives of choice exits: A>B>C, B>X>C, then A>B>X>C
P3
Transitivity: A>B, B>C, then A>C
P2
Maximizing rather than satisficing
Heuristic
Social values for Human exchange with others
Information exchange governed by
Self Interest
interdependence
Ensure all actions for individual are possible and exist
Convention Theory
Intersubjectivity
Increase decision making process