WDW151H1 Lecture Notes - Lecture 2: Road Rage, Spontaneous Order, Herding
12 May 2018
School
Department
Course
Professor
'father of sociology'
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Trained in law but taught economics
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Vote?
▪
Join groups?
▪
Some engage in crime and others don't?
▪
Some become wealthy, others don't
▪
Have a clear understanding of the decision problem (perfect
information)
□
Conduct exhaustive research so as to come up with a wide
range of potential solutions
□
Have the time, ability, and capacity to evaluate the costs and
benefits of each option
□
Select option that "maximizes utility"
□
Cost-benefit calculations
□
Rational Actors
▪
Beliefs
□
Religion
□
Cultural --> respect for elders, generosity, compassion, paying
it forward, loyalty, greed
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Value rational
▪
Driven by emotion
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Act impulsively --> road rage, happiness (team winning)
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Affectual
▪
Habit, routine
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Holidays, dress
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Traditions
▪
Motivated by pure logic
□
Have a clear understanding of the decision problem (have
perfect information)
□
Conduct exhaustive research so as to come up with a wide
range of potential solutions
□
Have the time, ability and capacity to evaluate the costs and
benefits of each option
□
Select the option that "maximizes utility" --> option with least
costs and most benefits
□
Cost-benefit calculations are a simplified version of ration
decision making
□
Instrumentally rational
▪
Why do people act the way they do?
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Max Weber 1864-1920
•
Top-down : leader or organization planned
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Deliberate
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Known outcome
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Serves a specific purpose
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Comparatively simple
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Taxis / Made order --> Japanese Precision walking
•
Cosmos / Spontaneous order
Lecture 1.2: How does social order arise?
September 21, 2016
10:00 AM
LECTURE Page 1
