ABSTRACT
Public choice theory examines political phenomena by using the approach of neoclassical economics. This theory uses a model of market behaviour based on the concept of rational choice and maximisation of utility to describe non-market mechanisms in society. Political processes, such as market processes, are seen as forms of exchange between those who participate in them. This approach encounters significant limitations resulting from the adoption of the concept of rationality. The chapter indicates these limitations and presents the possibility of using the spontaneous order theory as an alternative approach to formulating solutions to problematic situations that arise from the theory of public choice. This leads to criticism of the concept of rational ignorance and rational irrationality formulated within public choice theory. Instead, the theory of spontaneous order invokes the idea of radical ignorance, which does not require the assumption of omniscience or irrationality on the part of individuals. Noting the imperfection of knowledge and pointing to human creativity also leads to the rejection of the concept of market failure and state failure as presented by the theory of public choice.
