James Buchanan developed a theory of political decision making and
public economies - what he terms "public choice theory." Traditional
economic theory explains in great detail how consumers and entrepreneurs
make decisions regarding purchase of goods, choice of work, production,
investments, etc. Buchanan developed a corresponding theory of
decision-making in the public sector. To Buchanan, the political process
thus becomes a means of cooperation aimed at achieving reciprocal
advantages, and he believes outcomes are to a large extent determined by
established political constellations.
