ABSTRACT
This chapter provides a brief introduction to the basic assumptions of public choice thought and considers some of the critical issues which they raise. A well-known text-book gives the following definition of public choice: Public choice can be defined as the economic study of non-market decision-making, or simply the application of economics to political science. Actual market systems do not satisfy the strong requirements of this ideal model, for example over perfect competition, full information or in other respects. The 'political market' is cruder and harder to study than the market system. Market transactions can be measured and analysed in the common unit of money. Altruism appears to be a much more widespread factor in political than in market behaviour. Public choice theory assumes that individuals are rational actors and choosers. Economists' usual definition of rationality entails a consistent set of preferences. The concept of preference is important for voting rules.
