Ration Choice Theory told me it was okay!

Kayla Gray
2 min readSep 17, 2023

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Ferret Voice, Pinterest. https://i.pinimg.com/originals/69/64/92/696492edb52953e0fbb1fd09678e6531.jpg

What is rational choice theory and how did it possibly force me into buying something? Let me explain, rational choice theory implies that everyone makes decisions based on their own self-interests. For example, you could walk five minutes to the convenience store to buy muffins for $6.00, or you could walk ten minutes to the grocery store and get the same exact muffins for $4.00, which one are you doing?

If you’re like most, you probably picked the grocery store muffins for $4.00 to save yourself that extra $2.00, right? You could have had muffins five minutes sooner costing you an extra $2.00, or you could walk the extra distance and save some cash. In this example we also used cost-benefit analysis to decide. We decided that walking the extra distance was worth saving the $2.00, and the extra five-minute walk was no cost compared to the money we saved by going to the grocery store. One should also consider the marginal utility for this example as well.

In terms of marginal utility within the muffin example, one could assume that walking to get the muffins would also allow for an increased satisfaction level due to having to work towards obtaining the muffins. This will allow for the individual to have an increasing amount of satisfaction with each muffin allowing for positive marginal utility. For my most recent purchase, the same terms apply.

Now that we understand a little more about rational choice theory, let me explain how it made me buy them. We make hundreds of decisions every day and this one that I am about to share with you is no different. I felt lonely one day last week and decided that maybe I needed a furry friend to keep me company. Now, what did I care about more, the hard-earned money I put aside for my savings account, or the two ferrets I saw for sale in Petco? Now, since rational choice theory states that we act in terms of self-interest, I can confidently say that is exactly what I did.

I decided that my own happiness outweighed the $400 I put aside in my savings account. Sure, I could have used that money to pay off a credit card or two, but would that bring me as much happiness as two baby ferrets keeping me and each other company? Absolutely not. And in terms of marginal utility, with each ferret I purchased, I now have four, it brings me more and more satisfaction and happiness, allowing me to have a positive marginal utility. So in conclusion, economics told me that purchasing these ferrets was a great decision!

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