Question

Briefly discuss the following using example, people act rationally, optimally and self-interestedly

Answer 1

The rational actor paradigm refers to the assumption of behavior that people tend to act rationally, optimally, and self-interestedly while involving in decision making whose goal is to maximize the utility of such decisions. It is usually used to portray an individual who is concerned about his or her survival, strength, or prosperity based on which they make calculations. For example, when a person wants to invest in a particular stock, they make decisions considering its cost and benefits by comparing it with the other stocks and believing that their decision will offer a higher return. If such decisions do not reward them with the expected incentives it may de-motivate them resulting in a fall of their productivity level. In terms of international relations, the rational actor paradigm is used by a country or a state by focussing on the considerations while planning their interstate or international relations which include:

• Goal setting and ranking.
• Consideration of options.
• Assessment of consequences.
• Profit-maximization.