Rational Choices - Social Contexts

In neoclassical economic theory, rational actors are very simple entities: they know everything, they value more better than less, and given a decision situation with certain physical constraints they are able to calculate the optimal outcome and to behave accordingly (cf. Kiser/Ostrom). Any form of social interaction enters the decision situation as an additional constraint. Relaxing the conditions of the model asks the actors to apply a different calculus. The central consequence of any relaxation of the 3 basic assumptions mentioned above is that the model loses its determinacy, and therefore allows for multiple rationally derived alternatives. While in the simple neoclassical case alternatives that are subject to rational decisions only exist on the level of tastes and preferences, the relaxed model introduces a stage of rationally equivalent alternatives, i.e. alternatives that are not comparable within the model. We therefore have to expect that they employ supplementary strategies to arrive at the final decision. The solution Amartya Sen suggests for this decision dilemma is that actors decide with reference to a particular social context, where one of the alternatives becomes or already is viable. Unfortunately, Sen’s suggestion remains rather vague and leaves room for critique. In the following paper, I will build on this suggestion and propose how the concept of a social context can be embedded in the grammar outlined by Crawford/Ostrom. 1. Simple Minds, Simple Pleasures And a Not So Simple