1. Self-Interest: Public choice theory assumes that individuals act in their own self-interest, aiming to maximize their well-being. This applies to both voters and policymakers.
2. Utility Maximization: Individuals make decisions to maximize their utility, weighing the costs and benefits of different choices. In politics, this involves assessing the impact of policies on personal welfare.
3. Voting Behavior: Public choice analyzes voting as a rational act. Voters are seen as making choices that align with their preferences and self-interest, taking into account the perceived impact of policies on their lives.
4. Politicians as Rational Actors: Politicians are viewed as rational actors who seek to maximize their chances of re-election. They are motivated by personal and political considerations, and their policy decisions are influenced by the desire to appeal to the electorate.
5. Rent-Seeking: The concept of rent-seeking is central to public choice theory. It refers to individuals or groups attempting to gain economic benefits through political means, such as lobbying for favorable regulations or subsidies.
6. Bureaucracy: Public choice theory extends to the behavior of bureaucrats. It suggests that bureaucrats, like politicians, act in their self-interest, striving to maximize their power or budget allocations.
7. The Calculus of Consent: Buchanan and Tullock's seminal work, "The Calculus of Consent," delves into the theory of constitutional economics. It explores the idea of individuals agreeing on constitutional rules that structure the political process, influencing subsequent policies.
8. Limitations of Government Intervention: Public choice theorists argue that government intervention is not always in the public interest. They highlight instances where policies are shaped by special interests rather than the broader welfare of society.
Overall, the Theory of Public Choice provides a framework for understanding political decision-making through the lens of economic principles and individual motivations. It has implications for public policy analysis and sheds light on the complexities of democratic governance.
