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Review Essay About Bounded Rationality and Social Contract Theory
Review Essay About Bounded Rationality and Social Contract Theory
In this second article, related to the field of political science, contains a summarization of
Manzoor E. Laskar’s “Summary of Contract Theory by Hobbes, Locke and Rousseau.” (2014).
According to Laskar, the concept of Social Contract Theory was that at the beginning, there was
no law and government to administer the people; hence they lived in a state of nature. Because
of that, some problems face society. To surpass these problems, Laskar revealed that people
agreed to the pactum unionis and pactum subjectionis. Pactum Unionis was a pact where
people looked for protection for themselves and their properties. In turn, it formed a society
where its inhabitants would respect each other and live together peacefully. In the second pact
pactum subjectionis, people were guaranteed to have their lives and property protected and
have liberty to a certain extent, in exchange for their assurance that they would obey the
authority and give their freedom, either fully or some part of it, to the authority. These two pacts
contributed to the creation of a civil society. Laskar summarized the analyses of Hobbes, Locke,
and Rousseau. The analysis of Thomas Hobbes for the theory was that prior to the theory, man
lived in a state of nature where it was a bad state to be in. He further added in order to avoid the
misery and pain that the state of nature brought, and in order to achieve self-protection and
self-preservation, man entered into a contract as man had the instinctive desire for order and
security. He also clarified that in order to achieve this, man should surrender all the freedom and
rights that they have to the authority. This in turn concludes that for Hobbes, absolutism is
necessary. For the analysis of John Locke, his understanding of the theory is different from
Hobbes. He believed that man should only surrender the rights that would compromise the civil
society. Locke firmly believed that the purpose of the government is to enforce the laws and
protect the natural rights of man. He supported the principle of “a state of liberty; not of license.”
For Jean Jacques Rousseau, during the state of nature, life was quite happy and equality was
prominent there. Rousseau argued that because of property, it made state of nature to be not as
effective as it was. Due to this, people surrendered their rights to the community as a whole
which Rousseau called “general will.” Rousseau also argued that because of modern
civilization, the so-called original “freedom, happiness, equality and liberty” that existed before
the theory was, in turn, lost. Rousseau essentially based his theory of social contract on the
“Man is born free, but everywhere he is in chains” principle, and he favored people’s
sovereignty.
For the second article regarding the field of economics, particularly bounded rationality,
“Bounded Rationality” by Reinhard Selten where it pointed out the history and progression of
bounded rationality. The idea of bounded rationality was conceived to replace the idea of
maximizing resources and utilizing it but instead should satisfy and adapt to certain situations
that involves success and failure. The article points out that it is important to understand that
cognitive alone is not the limit of rationality but also the motivation.It also tackles the concepts of
bounded rationality but not all of them. It also pointed out that the theory of bounded rationality
needs factual or empirical basis which can be only attained through experimental researching. It
also stated that the decision processes aspects should be learned which was the main subject
of the third and fourth section of the article while the second section handled the limitations of
bounded rationality.
IV. Application
Applying both Social Contract Theory and bounded rationality into Philippine society is
something that is not that difficult to implement. An example of Social Contract Theory being
applied into the society is the legal system. To give an example to further elaborate, if someone
commits theft and they deny of committing the crime, instead of trying to find the evidence by
the victim whether it is forcefully or not, it will be an invasion of privacy as the victim does not
have permission for that action. Instead, both parties will rely on the legal system to settle this
conflict. The legal system was created to prevent actions that are allowed in a state of nature, in
order for it to be implemented, it is imperative to surrender the rights that one would retain in a
state of nature. An example of bounded rationality in our society is the 2020 Tarlac shooting that
was involving Jonel Nuezca, a police officer at that time, Sonya and Frank Gregorio. The murder
of Sonya and Frank Gregorio was a product of Nuezca’s inability to control his emotion after
Sonya Gregorio replied “I don’t care” to Nuezca’s daughter “My father is a police man.” Emotion
is an example of bounded rationality as it is a limitation to individuals regarding rational
decisions. Nuezca chose to murder Sonya and Frank just to satisfy himself and not sort it out in
a logical way by talking to the other party by civilized means.
V. Recommendation
In order to understand the Social Contract Theory and bounded rationality, it is
imperative to understand that for Social Contract Theory is where individuals give up certain
rights to the authority and in exchange, the other rights that they have retained would be
protected by the authority. An example of this is the aforementioned legal system in the fourth
section of this review essay. For bounded rationality, it is essentially where individuals choose to
take decisions that would satisfy and not to utilize. Another example of this apart from the 2020
Tarlac incident is an individual that would choose to buy something at a store for an
unreasonable expensive price than go and look for another store that would offer a cheaper
price compared to the unreasonable one.
VI. References
https://scholarworks.iupui.edu/handle/1805/5538
Laskar, M. E. (2013). Summary of Social Contract Theory by Hobbes, Locke and Rousseau.
Simon, H. A. (2000). Bounded rationality in social science: Today and tomorrow. Mind & Society,
Selten, R. S. & Mohr Siebeck GmbH & Co. KG. (1990). Bounded Rationality. Journal of
Staff, C. N. N. P. (n.d.). Cop Who Shot Mother and Son in Tarlac to Face Murder Charges. CNN.
from,
https://www.cnnphilippines.com/news/2020/12/21/Paniqui-Tarlac-police-shooting-Jonel-N
uezca-Sonya-Frank-Gregorio.html