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Lecture

February 13Consumption.docx

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Department
Psychology
Course Code
PSY435H1
Professor
Dan Dolderman

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February 13, 2014 Environmental Psychology: Consumption - Most programs designed: too top-down- you come up w ideas and unleash them into population - Ideally: participatory- a co-evolved product - Environmental community believes in the community social capital - Power in diversity allows you to come up with something cool - At same time you want simplicity simplicity also powerful - Groupthink Underexplore opportunities o Political Science perspective: how could such intelligent ppl makes mistake o When strong personality, i.e. president Yes Man phenomena, ideas conform, dismissed, singled-out, keep ideas to self o Group foreclosures on idea long before they discover all other options - Feedback loop: Democracy dissent - Economy of Scale : you have perfect knowledge- you know what’s going to happen and you want to invest in stock market - If you have perfect knowledge, then you put all your eggs in one basket (bc one stock that will go above any other - If you have imperfect knowledge you have, you need to have diversified portfolio o Imperfect knowledge: means you have to settle on sub-optimal option - Food system: if you knew what weather was going to be like thing of aim of planting one crop if you plant it at one time very efficient one market one train- very efficient system - But if you don’t know what weather would be like than you diversify o Aboriginals harvest hundreds of crops diff food sources, even if it is a bad year for such crop, wet, dry year, they may lose certain crops but preserve other crops o Highly-resilient but sub-optimally productive - Economy of scale (Henry Ford) if you can make scale larger, is cheaper and better o The larger the scale, the more homogeneous something is oer the scale, the more power you have o But fragile, if anything happens, you don’t have a back-up plan/ method since focused on homogeneity o So optimal level bw homogeneity and diversity? - The Europeans brought food staples to NorthAmerica rules diff, bugs diff,  plans did not work out so well - Homogeneity, simplicity - short term profit for next quarter homogeneity ideal - long term diversity important - Tragedy of the Commons o When you pit individual self-interests against collectivist cultural interests o Historic location: oxford o CommonArea- anyone can use it: common resources- grows grass, is in each farmers’self-interest to get couple more grass, sheep o If each farmer/ fisherman thinks I want to take a little extra- then this common resource gets very quickly exploited o From rational, self-interest perspective: each person should over-exploit the resource (better for own income) o Self-interest of rationality: take a little bit more collective outcome: tragedy bc everything crashes (fish, crops, livestock run out) o We live in a time where rational self-interest of actors o The market behaves wrt rational self-interests o 1)Major message for 20-cent economics rational self-interests don’t work in long term o 2) Importance to commons what’s commons: air, water, fish, you have major catastrophe on hands o Society dominated by rational self-interest individuals is going to lead to collective doom of society o Solution No. 1) Privatization: give ownership over resource to group/ organization X  Privatization makes group attached to resource (i.e. forests)  Now corporation owns forest and they want to sustain it for long term (i.e. Native 7- year), build long term motivation, won’t destroy forest o Solution # 2) Mutual C, mutually agreed upon  Considered socialism in US, which is gone against  Astructure everyone could agree upon ALaw/ Policy • Something that places limits on ability to exploit resources • If you impose law, ppl may not follow, lead to cheating ,thus need to enforce the law, back up w punishment • Curtail self-interest in favour of collective interest  Does not work B/c: 1) bc something has to be enforced is not mutually agreed upon  2) and simplified legal structure so you end up w decision that is sub- optimal- not every person organization involved did not sit to gather to decide upon law  decision did not consider full complexity of companies, groups involved o Are we going to sustain harvest fore
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