Formal theory, also known as positive political theory, is the subfield of political science that uses formal methods such as social choice theory, game theory, and statistical analysis to deductively study political phenomena. It seeks to construct and use mathematical models to represent strategic choices in political contexts, such as in elections, legislative policymaking, and international politics. These models can either be tested empirically or used to elucidate real-world political phenomena by highlighting relevant incentives or causal mechanisms.
In political analyses using formal theory, social choice theoretic methods are often used to describe and axiomatically analyze the performance of rules or institutions. The outcomes of the rules or institutions described are then analyzed through game theoretic methods, where the individuals or parties or nations involved in a given interaction are modeled as rational agents playing a game, guided by self-interest. Based on this assumption, the outcome of the interactions can be predicted as an equilibrium or equilibria of the game. Many of the tools used in formal theory—such as game theory, bounded and instrumental rationality, utility functions, deductive logic, and modeling—were imported from neoclassical economics.
