Explain Buchanan's public choice theory.
Public choice theory begins with the bedrock assumption that individuals, whether they are consumers, voters, or politicians, are motivated by self-interest. We then use the tools of economics to analyze how this self-interest plays out in the political arena. This means understanding how individuals make choices when casting votes, how politicians strategize to gain power, and how bureaucrats aim to maximize their budgets and influence. The goal is not to condemn these actors, but to build institutions that channel this inherent self-interest towards collectively desirable outcomes.
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