Wednesday, October 8, 2008

An Economic Theory of Democracy

by Anthony Downs

The concept of Rationality in Economic Theory:

Simplification of complex behavior necessary for fielding predicitons because decisions made at random fail to fall into patterns. Assumes conscious rationality prevails in human thought. If a theorist knows what a man or starw wishes in the end, he can calculate the most reasonable way for a decision-maker to reach his goals and assumes the rational decision-maker will follow this path. Economists assume a single goal so that one efficient way to attain it may be found: firms maximize profits, individuals maximize utility.

Rational men always make decisions when confronted with alternatives by ranking all in front of him in a transitive manner and picks the same highest result every time. Avoid the conclusion that every man's behavior is rationanl because it is aimed at some end and the returns must have outweighted the costs. Psychological considerations of why men pick what they do is irrelveant to economics. The whole personality of the individual is neflected. Models cannot reflect real-world behavior. To avoid becoming primary-group sociology, economists assume men orient their behavior chiefly toward the outer world.

Irrationality and the Basic Function of Political Rationality:

People tend to behave in ways they think is rational. How can a political scientist distinguish between one who makes mistakes and one who is irrational? Weakened argumment as these cannot be proven experimentally. Tie the aim of behavior to a goal: if a man intends to gain politcal power, is he acting rationally? The cost of information leads some to make errors. Bracket off what it can and cannot do. Rational behavior needs a predictable social order.

The Structure of the Model:

Downs assumes that every government seeks to maximize political support. Constraints exist not as socially constructed expressions of public will but as politically expedient rules both parties possess an interest in following. Predictive model illuminates how an efficient government would behave.

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