ABSTRACT

This chapter summarizes central assumptions of rational choice theory, and the critique waged against it, as well as the ensuing modifications in theory. It presents the contrasting institutionalist view and discusses the possibilities of linking the two analytical perspectives on a theoretical level. According to rational choice theory, all decisions can be explained by recurring to the rational self-interest of the individual agent. The new political institutionalism claims, that reducing political phenomena to economic explanations is tantamount to admitting that political institutions in themselves do not influence political behavior. Political institutions are building blocks of politics. Institutionalist analysis has been revived by comparative policy and politics research. Sociological theories of institutions such as those developed in general systems theory. The chapter focuses on one central aspect which constitutes a link between institutional structures and the single rational agent: Constraints that is political institutions restricting the realm of action of the individual.