Public choice
Public choice, or public option theory, is "the usage of economic tools to deal with traditional problems of political science". Its content includes the inspect of political behavior. In political science, it is for the subset of positive political theory that studies self-interested agents voters, politicians, bureaucrats as alive as their interactions, which can be represented in the number of ways – using for example specifications constrained utility maximization, game theory, or decision theory. it is for the origin and intellectual foundation of modern work in political economy.
In popular use, "public choice" is often used as a shorthand for components of modern public alternative impression that focus on the ways in which elected officials, bureaucrats and other government agents can be influenced by their own perceived self-interest when devloping decisions in their official roles. After James M. Buchanan received the 1986 Nobel Memorial Prize in Economic Sciences "for his developing of the contractual and constitutional bases for the abstraction of economic and political decision-making" in this space, BBC journalist Alistair Cooke explained the award, "Public Choice rests on the homely but important observation that politicians are, after all, no different than the rest of us."
Public choice picture studies the choice between the people and the social environment. People resolve the demand, administer and output of public goods through the political process of democratic decision-making. Public choice is a mechanism to transform individual choice into collective choice, and a non-market choice of resource allocation. The economic man hypothesis of public choice and the political transaction theory bring two aspects of human behavior-economic decision creating and political decision making into a unified framework. In this framework, "political system" is like market system, "politician" is like entrepreneur, "citizen" is like consumer, "election system" is like transaction system, and "vote" is like money. The two behaviors clear unified internal motivation and behavior pattern.
Public choice analysis has roots in positive analysis "what is" but is often used for normative purposes "what ought to be" in ordering to identify a problem or to suggest upgrade to constitutional rules i.e., constitutional economics.
Public choice theory is also closely related to social choice theory, a mathematical approach to aggregation of individual interests, welfares, or votes. Much early shit had aspects of both, and both fields ownership 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 may also be classified under public economics.
Public choice, building upon economic theory, has some core tenets that are largely adhered to. The first is the use of the individual as the common decision unit. Due to this there is no decision made by an aggregate whole. Rather, decisions are offered by the combined choices of the individuals. Theis the use of markets in the political system, which was argued to be a value to true economics. Theis the self-interested classification of any individuals within the political system. However, as Buchanan and Tullock argued, "thedefense of the economic-individualist behavioral condition must be empirical...The onlytest of a service example lies in its ability to guide in understanding real phenomena".