First published in 2002. Routledge is an imprint of Taylor & Francis, an informa company.

The value of rational choice theory for the social sciences has long been contested. It is argued here that, in the debate over its role, it is necessary to distinguish between claims that people maximise manifest payoffs, and claims that people maximise their utility. The former version has been falsified. The latter is unfalsifiable, because utility cannot be observed. In principle, utility maximisation can be adapted to fit any form of behaviour, including the behaviour of non-human organisms. Allegedly 'inconsistent' behaviour (...) is also impossible to establish without qualification. This utility-maximising version of rational choice theory has the character of a universal 'explanation' that can be made to 'fit' any set of events. This is a sign of weakness rather than strength. In its excessive quest for generality, utility-maximising rational choice theory fails to focus on the historically and geographically specific features of socio-economic systems. As long as such theory is confined to ahistorical generalities, then it will remain highly limited in dealing with the real world. Instead we have to consider the real social and psychological determinants of human behaviour. (shrink)

Popper’s theory of World 3 is often regarded as incongruent with his defense of methodological individualism. This article criticizes this widespread view. Methodological individualism is said to be at odds with three crucial assumptions of the theory of World 3: the impossibility of reducing World 3 to subjective mental states because it exists objectively, the view that the mental functions cannot be explained by assuming that individuals are isolated atoms, and the idea that World 3 has causal power and influences (...) both individual minds and actions. This article demonstrates that the inconsistency thesis stems from a confusion between methodological individualism as understood by Popper and reductionism. The reasons for this confusion are analyzed and clarified. It is argued that two variants of methodological individualism can be distinguished, and that unlike psychologistic individualism, Popper’s nonatomistic individualism is fully consistent with his theory of World 3. (shrink)