IR 106 Lecture Notes - Lecture 2: Stag Hunt, Social Contract, Pareto Efficiency
Document Summary
No government to come and help you out. States; human community that successfully claims the monopoly of the legate use of physical force within a given territory max weber (1919) Small forms of social organizations (kin based groups) This usually led to extreme violence btw individuals. Order was maintained through social norms, equality , small size (to punish defectors) Functionalism; institutions exist because of the effects they have. 3- carneiro says that people will fight with each other for resources, this theory was first established by darwin early in the 1800"s. Steal everything and be rich for one moment. Or steal (tax) just a bit and be less wealthy over a long period. Too much taxation de motivates workers (laffer curve) Discount factor; basically how much you care about the future. Stationary bandits- tax slowly, after weighing the benefits (tax at exactly the rate of the benefits of taxation to de motivation levels)