ASSIGNMENT 4A-1

Assignment 4a-1



Assignment 4a-1

Introduction

The strategic choice approach is a logical way of the individual choice models, which is based on strategies to shape the framework of decision-making. The approach is closely linked to rational-choice analysis and game theory (Stacey 1999).

There are two main components of the approach that are choice and strategy. While focusing choice on an individual basis, the model emphasizes that people have discretion. The economy does not fully constrain people, culture or institution in this approach. However, choices are often influenced by culture or institution and make a difference.

A strategy can be thought as a tool to enhance the likelihood of achieving aims, such as democracy or reforms. A strategy may vary in coherence and design, and it ranges from single, isolated decisions to difficult, interrelated set of choices (Hirschman 1965).

Choices and strategies are generally considered having an impact if results are not known and predetermined and when decisions are not so tightly constrained as to eliminate discretion. Therefore, another major element of the model is uncertainty. However, the level of uncertainty varies i.e. in some conditions, it may not know what choices others are likely to make, and in other situations, uncertainty also exists about the rules of the game, to know about the actors that are participating (Porter 1991).

Discussion

The origin of the strategic choice model was when the industrial relations in the United States of America were changing rapidly. Since most of the theories of that time was based on certain situations and assumptions, therefore, rapidly changing business environment created the need of a new model to consider different situations and assumptions (Stacey 1999).

Rational choice is a wide range of techniques, which assumes that the players make their decisions or choices in the context of a cost-benefit analysis. There are three limitations of these models in terms of rational choice assumptions. The first limitation is that states or the state leaders do not necessarily calculate their decisions on the basis of a cost-benefit analysis. However, this is not a concern for theorists of rational choice model, who emphasize the instrumental role of their theory and assumes that actors behave as if they are rational and validate their theory on its predictive power rather than by its actual accuracy. Next, the limitation is that the meaning of rationality tends to be too broad and open to as post hoc formulations. Self-interest is a problematic concept due to the fact that it relates to the wishes of a person. Therefore, the concept is too broad that it is now considered a limitation because it not useful for actors. The point of criticism is that if rational choice theory explains everything, it explains nothing. The final limitation is based on the critics that have claimed that rational choice theorists have not been open to criticism with the concern of assumptions and have been reluctant to consider alternatives to their theory (Hirschman 1965).

For instance, Dunlop model in 1958 was widely accepted in ...