Public Choice Theory

Public choice theory is the use of modern economic tools to study problems that traditionally are in the province of political science. From the perspective of political science, it is the subset of positive political theory that models voters, politicians, and bureaucrats as mainly self-interested. In particular, it studies such agents and their interactions in the social system either as such or under alternative constitutional rules. These can be represented in a number of ways, including standard constrained utility maximization, game theory, or decision theory. Public choice analysis has roots in positive analysis ("what is") but is often used for normative purposes ("what ought to be"), to identify a problem or suggest how a system could be improved by changes in constitutional rules, the subject of constitutional economics.

Public choice theory is closely related to social choice theory, a mathematical approach to aggregation of individual interests, welfares, or votes. Much early work had aspects of both, and both use the tools of economics and game theory. Since voter behavior influences the behavior of public officials, public choice theory often uses results from social choice theory. General treatments of public choice are classified as a subarea of public economics.

Read more about Public Choice Theory:  Background, Applications, Development, Recognition, Criticisms

Famous quotes containing the words public, choice and/or theory:

    Some crimes get honor and renown by being committed with more pomp, by a greater number, and in a higher degree of wickedness than others. Hence it is that public robberies, plunderings, and sackings have been looked upon as excellencies and noble achievements, and the seizing of whole countries, however unjustly and barbarously, is dignified with the glorious name of gaining conquests.
    François, Duc De La Rochefoucauld (1613–1680)

    The fondness or indifference that the philosophers expressed for life was merely a preference inspired by their self-love, and will no more bear reasoning upon than the relish of the palate or the choice of colors.
    François, Duc De La Rochefoucauld (1613–1680)

    Psychotherapy—The theory that the patient will probably get well anyway, and is certainly a damned ijjit.
    —H.L. (Henry Lewis)