The basic framework of public choice theory, what is public choice theory?

Public choice theory takes the individual as the basic unit of analysis, and takes rational homo economicus as the basic behavioral assumption to study collective decision-making and the choice of collective decision-making rules. His research interests include a range of issues such as voting, party competition, voter behaviour, bureaucracy, collective action, and constitutional choice. Public choice theory uses economic methods to study political issues, which has changed people's traditional views on politics.

The theory of public choice is often referred to as "public choice" in the English literature, also known as the new political economy or economics of politics, which is a new interdisciplinary discipline between economics and political science. It uses the basic assumptions of microeconomics (especially the rational person hypothesis), principles and methods as analytical tools to study and characterize the behavior of subjects in the political market and the operation of the political market. [1]

Public choice refers to the behavior and process of what kind of public goods people provide, how they provide and distribute public goods, and how to set up corresponding matching rules. Public choice theory expects to study and influence people's public choice through the research results, so as to maximize its social utility.

Public choice theory is a branch of economics that studies the process of decision-making and the various choices and considerations faced by policymakers. Public choice theory argues that ** is not omnipotent, and that policymakers often have problems such as self-interest, limitations, and information asymmetry, which can have a significant impact on policymaking. The main contents of public choice theory include the following aspects:

1. Rational and self-interested policymakers.

Public Elective Macro Choice Theory argues that policymakers are rational and self-interested, and that their purpose is to achieve their own interests and goals, rather than necessarily to achieve the public good. Self-interest here is not greed and selfishness, but rather the fact that policymakers will prioritize their own political status, voter support, political interests, and other factors. This kind of rational self-interested behavior can lead to policymakers favoring specific groups, political manipulation, etc.

2. Limitations of policymakers.

Public choice theory argues that policymakers have limitations, and their decision-making may be affected by factors such as information asymmetry, cognitive bias, and groupthink. Policymakers are often limited to making decisions on limited policy options, without considering all factors and solving all problems. This limitation affects the judgment and decision-making of policymakers, leading to problems of fairness and efficiency in policy allocation.

3. Transaction costs for policymakers.

Public choice theory argues that policymakers also need to face the issue of transaction costs when formulating policies. Policymakers need to consult and communicate with various interest groups in order to obtain more information and support in the decision-making process. This exchange and communication incurs transaction costs, resulting in policymakers not being able to adequately consider all factors when making decisions.

Fourth, the influence of interest groups.

Public choice theory holds that policymakers are influenced by interest groups. These interest groups often have powerful organizations and resources that can exert enormous influence on political decision-making. Policymakers often need to make compromise decisions between different interest groups and consider their responses to policy decisions.

In short, public choice theory provides a new perspective and theoretical explanation for the study of decision-making and policy effect, suggesting that policymakers need to pay more attention to institutional design and evaluation of policy effects in order to maximize public interests.