CMN 2173 Lecture Notes - Rationality, Consumer Sovereignty, Plutocracy
23 Feb 2014
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Traditional economic theory stresses irrational consumer and consumer sovereignty. Tet stresses the rational consumer and consumer sovereignty. Plutocracy: rule of the rich: democracy leads the middle class to believe they have power, mob rule: marketplace serves the many (the largest segment). The more expensive something is, the more profitable it is. Free-choice is a myth of the marketplace. According to the text societies based on status ranking produce socially scarce positional goods. We are compelled to keep up with the jones" in order to fit in". Conflict in this is the desire for individuality vs. the desire to still fit into society. Careful with this the prof is of the opposite opinion being that advertising does lie however, the author of the textbook (and most academics) use the word manipulate" instead: 19 22. For the exam, know three sources of ambiguity. *** (found in the pages listed above or in the reading summaries).
