ECON BC 2075y Lecture 7: Lecture 7 Notes
29 Sep 2016
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Document Summary
Elementary game theory and conceptions of distributive justice. Game theory and prisoner"s dilemma, when equilibrium is not efficient. Moving towards rawls, on a fuller conception of well-being. Make rich richer indirectly affect poor because of philanthropy. Cut taxes on corporations and rich spend more on enhancing business, creating jobs, spend on productivity (need more workers) Wages are difficult to adjust, monopolies, employers do not like to cut wages in time of recession bc it will decrease productivity of worker. Economics makes assumptions to how humans behave. Interpretation of policy depends on how you think humans will react. Logic based argument to appeal to higher educated voters. Discussed pe and its problems, how limited it is as a theory of weelbieng- expand range of welfare economics w/social choice theory. Can"t get an acceptable social welfare function--- satisfying pareto efficiency & other base principles namely: Only a dictator could be able to ensure a rational, consistent social outcome
