Rational choice theory rests on coherence and invariance assumptions

Evidence

The assumption of individual rationality plays a central role in the social sciences, especially in economics and political science. Indeed, it is commonly assumed that most if not all economic and political agents obey the maxims of consistency and coherence leading to the maximization of utility. This notion has been captured by several models that constitute the rational theory of choice including the expected utility model for decision making under risk, the riskless theory of choice among commodity bundles, and the Bayesian theory for the updating of belief. These models employ different assumptions about the nature of the options and the information available to the decision maker, but they all adopt the principles of coherence and invariance that underlie the prevailing notion of rationality. — John T. Jost and Jim Sidanius, Political Psychology, 2407

Categorization

• DEFINE: Names the two core axioms — coherence and invariance — that structure the normative/descriptive debate.
• XREF: connects to: Rational expectations theory was formulated as a direct rebuttal to Simon’s bounded-rationality critique — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 170; Public choice theory treats all policy as self-interested coalitional maneuvering — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1583; Choice architecture steers decisions even when all options remain free — James D. Kirylo (ed.), Reinventing Pedagogy of the Oppressed:…, 530