structural:scholar_edition
Rational choice theory in social interactions

Coleman discussed a number of theories to elaborate on the premises and promises of rational choice theory. One of the concepts that He introduced was Trust. It is where "individuals place trust, in both judgement and performance of others, based on rational considerations of what is best, given the alternatives they confront". In a social situation, there has to be a level of trust among the individuals. He noted that this level of trust is a consideration that an individual takes into concern before deciding on a rational action towards another individual. It affects the social situation as one navigates the risks and benefits of an action. By assessing the possible outcomes or alternatives to an action for another individual, the person is making a calculated decision. In another situation such as making a bet, you are calculating the possible lost and how much can be won. If the chances of winning exceeds the cost of losing, the rational decision would be to place the bet. Therefore, the decision to place trust in another individual involves the same rational calculations that are involved in the decision of making a bet.