How do rules and incentives shape behavior in rational choice institutionalism?

In rational choice institutionalism, institutions are viewed as systems of formal rules and incentives that structure the strategic interactions of political actors. These rules shape behavior by defining the constraints and opportunities within which individuals pursue their personal preferences.12

Actors are assumed to be rational, meaning they choose courses of action that maximize their utility or rewards while avoiding sanctions. Rules influence these choices by providing actors with reasonable expectations about the outcomes of their actions. Because individuals act strategically, they adhere to institutional norms when it is in their interest to do so—often to secure future benefits or career advancement.13

Furthermore, rational choice institutionalists use game theory to model these interactions, treating institutions as frameworks where rules are contested by actors seeking leverage. In this view, institutions are often considered self-enforcing; they persist because they provide a stable environment where rational agents can calculate the best strategy to achieve their goals given the actions of others.4213