What is Rational Choice Theory?

Rational choice theory has become so familiar that it can feel like common sense. We talk about trade-offs, optimization, ROI, and risk as if they capture what it means to think clearly. But many of the decisions that matter most do not work that way. They are shaped by context, values, relationships, and the larger story of a life. In this episode, Barry Schwartz returns to discuss how rational choice theory became the default way we think, how it shapes work and decision-making, and what a more human approach to being rational might look like.

Barry Schwartz is a psychologist and professor emeritus at Swarthmore College. He studies decision-making, motivation, and the role of meaning in work and life.

In this episode, Dart and Barry discuss:
- Why we treat decisions like math
- What gets lost when everything becomes a number
- Why some choices cannot be compared
- The difference between risk and uncertainty
- How framing shapes every decision
- Why metrics can crowd out judgment
- The danger of maximizing everything
- Why good enough can be wiser
- How choices fit into a larger life story
- Why counting is not the same as thinking
- And other topics…

Barry Schwartz is the Dorwin P. Cartwright Professor Emeritus of Social Theory and Social Action in the Psychology Department at Swarthmore College, and Visiting Professor of Management at the Haas School of Business at UC Berkeley. His work focuses on decision-making, motivation, moral judgment, and meaning in work and life. He is the author of The Battle for Human Nature, The Costs of Living, The Paradox of Choice, and Why We Work. He is also the co-author of Practical Wisdom (with Kenneth Sharpe) and Choose Wisely (with Richard Schuldenfrei).

Resources Mentioned:
Barry’s Book, Choose Wisely: Rationality, Ethics, and the Art of Decision-Making: https://www.amazon.com/Choose-Wisely-Rationality-Ethics-Decision-Making/dp/0300283997
Barry’s Book, The Paradox of Choice: Why More Is Less: https://www.amazon.com/Paradox-Choice-Why-More-Less/dp/0060005688
Barry’s Book, Why We Work: https://www.amazon.com/Why-We-Work-TED-Books/dp/1476784868 

Work with Dart:
Dart is the CEO and co-founder of the work design firm 11fold. Build work that makes employees feel alive, connected to their work, and focused on what’s most important to the business. Book a call at 11fold.com.