Institutions, rational choice theory and decision making
The new institutionalism arises from the contrast that was born to the old institutionalism and the theory of rational choice which laid its bases on concepts of the neoclassical economy, where the individual was the central axis of the analysis and conjectures were carried out whereHe considered him a rational actor, in addition to a utility massifier, that is, individualistic and rational beings in search of the scope of the greatest benefit and that separated him from the consideration that was previously attributed as a social individual or who was studied withina society. Additionally, this theory did not take into consideration the importance of the role that institutions play within decision making regardless of their character, individual or collective.
Consequently, opposite positions were developed to the concept of rationality on which the theory sat, this resulted in a common agreement between the scholars of the issue that consisted of being able to look again at the role that institutions play in decision making.
One of the pioneers in the process of the emergence of the new institutionalism was Herbert Simón with his notion about rationality in the organizational context. Simón, tries to define and explain the concept of rationality and in turn the scope in this. This approach resulted in the management that was previously given to the rationality attributed to the individual and redefine assuming that individuals have limited rationality.
The limitation of rationality in individuals in decision -making lies in the task of deciding, the individual is forced to make decisions to move within the environment, but the individual is impossible to consider totally all decision alternatives and all consequencesthat follows these decisions since due to the little information that is possessed on the subject, for the time in which this decision must be made, due to the limitations in the information processing capacity there are also conditions that have been predestined andThey are part of the value system or other guided dials by the role that it works within a certain institution.
On the other hand, the institutions are classified as the main determinants of the projection of individuals, it is these who greatly influence individual or group behaviors because of dictating norms or rules that delimit human behavior and the decision -making processIn effect, these rules or rules are linked to the need to establish parameters that help us better make the decision making limitations as the knowledge, time and consequences derived from the decision made, in addition not to keep in mind the limitations canbe a reason to fail in the process.
Bibliography
- Herbert. A. Simon (1947). "Acts and values in decision making". In: Administrative behavior. (two. ª ed., pp. 45-58). Buenos Aires. Argentina. Aguilar s.A.
- Herbert. A. Simon (1947). "Rationality in administrative behavior". In: Administrative behavior. (two. ª ed., pp. 58-75). Buenos Aires. Argentina. Aguilar s.A.
- Espinosa. AND. (2015). The new institutionalism: towards a new paradigm? Political studies, 9 (34), 117-137. Available at: http: // www.Scielo.org.MX/Scielo.PHP?script = sci_arttext & pid = s0185-16162015000100006.
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