Rediscovering reasonable rationality in institutional analysis

Abstract In recent years institutions have regained their lost prominence throughout the social sciences. A host of rules, routines, and norms shape social and political interaction, the new institutionalists agree. However a sociological and a rational choice approach have disagreed on a number of issues, most notably on how institutions shape political action. Notwithstanding this, the conception of man and human rationality is the root of most controversies. In contrast to other presentations this essay argues that the most promising aspects of the two traditions are already converging. If the rational choice approach abandons its narrow conception of rationality, and if the sociological approach concedes that human beings have a capacity of conscious reflection over goals and values irrespective of context, one of the critical obstacles for mutual theoretical enrichment has been swept away. A more reasonable conception of rationality sees preferences as culturally bounded and shaped by experiences constrained by institutions. Within this framework, dialogue between the two approaches is possible; different theories of institutional change can be seen as being complementary or as rivals; a host of politically germane issues can reenter our research agenda.