ABSTRACT
Economist Sen (1994:385) defined rationality in economic theory: “a decision-maker is rational if he makes decisions consistently in pursuit of his own objectives.” But Sen argues that this definition—based on intelligently maximizing a “payoff function,” using all available tools, and taking account of alternatives—ignores context-dependent influences on social behavior. For example, a common choice when a fruit basket goes around is to not pick the last apple. Sen goes on to critique the assumption that choices must be governed by maximizing one’s own well-being, including emotional preferences based on sympathy or antipathy. He argues that “action-judgments” in social interdependence can cause people to “impose restraints on their own instrumental choice[s].” Sen cites cross-cultural variation in work performance such as the emphasis in Japanese society on collective responsibility as a case in point.
