ARBUS202 Lecture Notes - Lecture 14: Free Rider Problem, Joseph Heath, Autarky

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS202
• Professor: All

Document Summary

I(cid:374) the (cid:272)ase of glazier(cid:859)s so(cid:374) it is (cid:449)ro(cid:374)g to thi(cid:374)k that it is a(cid:374) e(cid:272)o(cid:374)o(cid:373)i(cid:272) de(cid:272)isio(cid:374). We as a society set the rules: the pursuit of self interest: smith acknowledges that the pursuit of self-interest is noxious in (cid:373)a(cid:374)(cid:455) (cid:272)ases sa(cid:448)e the e(cid:272)o(cid:374)o(cid:373)i(cid:272) de(cid:272)isio(cid:374) . Remember the quote about butcher baker, who work for their self interest. You say: if you buy my product, it would help me, but i am not gonna convince you to buy (cid:271)e(cid:272)ause of that. You sa(cid:455) look at this great thi(cid:374)g, do(cid:374)(cid:859)t (cid:455)ou (cid:449)a(cid:374)(cid:374)a (cid:271)u(cid:455) it. We (cid:373)ake produ(cid:272)ts (cid:449)ith comparative advantage and then trade. For smith, division of labour gave rise to the wealth of nations. Autark(cid:455) is e(cid:272)o(cid:374)o(cid:373)i(cid:272) i(cid:374)depe(cid:374)de(cid:374)(cid:272)e. joseph heath: (cid:862)the (cid:373)o(cid:448)e(cid:373)e(cid:374)t fro(cid:373) autark(cid:455) (cid:863) The idea that (cid:449)e do(cid:374)(cid:859)t ha(cid:448)e to do it all, (cid:373)akes (cid:272)o(cid:373)(cid:373)er(cid:272)ial e(cid:454)(cid:272)ha(cid:374)ge possi(cid:271)le. In theory group work is great but then we have to count on each other to make our de(cid:272)isio(cid:374)s. (cid:858)proso(cid:272)ial dispositio(cid:374)s(cid:859).