One problem with rational choice theory is that externalities resulting from individual choices may generate less than optimal outcomes for the greater group.

Question

Quizplus · Accepted Answer

Rational choice theory assumes individuals make decisions that maximize their own utility, but it often overlooks how these decisions can lead to externalities, which are costs or benefits for others not involved in the decision. These externalities can lead to outcomes that are not optimal for the group as a whole.

One Problem with Rational Choice Theory Is That Externalities Resulting