WDW152H1 Chapter Notes - Chapter 6: Barter, Scientific American, Michael Shermer
12 May 2018
School
Department
Course
Professor
Government provides reason for people to behave cooperatively
○
If people withhold support from a central authority to maintain individual
power, no state can be established
○
Can there be orderly society without external authority?
○
Authority may need to be oppressive to be effective
○
Hayek: order may not need to be planned from above : individual pursuing own
interests can produce a predictable system
○
People don't prefer segregation, but segregation is the outcome
▪
Unregulated interaction of rational egoists produces an outcome that is
unintended / unwanted
▪
Schelling : interaction may produce predictable patterns, but does not
necessarily increase social order
○
Smith : rational egoists can create social order in the absence of coercion
○
Zero-sum game : if X has, Y can't have
▪
State of nature is homogenous - same desires / resources
○
Same number of people can produce more
▪
Positive-sum rather than zero-sum : everyone wins
▪
Less conflict, greater potential for cooperation
▪
Smith : individuals have different resources --> division of labour
○
Axelrod prisoner's dilemma --> people exchange fairly
○
Cocizin conditions under which organisms join together
○
Increasing individual will improve collective welfare
○
Connection between individual and macro-level outcomes in complex
○
Hector and Horne, “Markets,” 134-138.
►
Division into number of branches, peculiar trades
○
Increases quantity of work he can perform, make one operation the sole
employment, improves dexterity
▪
Increase in dexterity in every particular worker
○
Hard to switch place / tools quickly
▪
Serving of time commonly lost in passing work
○
Application of property machinery - used in subdivisions
○
Each individual becomes more expert in his own peculiar branch, more work is
done on the whole, and the quantity of science is considerably increased
○
Division of labour is evolution of propensity to truck, barter, exchange -->
cooperation
○
Most species of animals are independent
○
Exchange surplus labour (arrows, food, shelter)
▪
Due to upbringings, practiced talents
Man always looks to brethren for help, must convince it is in their self-interest
as well
○
Adam Smith, “The Division of Labor,” in H&H, 166-174.
►
Reading 2.6: Cooperation III: Trade & Markets
February 15, 2017
7:08 PM
READINGS Page 1
Document Summary
Government provides reason for people to behave cooperatively. If people withhold support from a central authority to maintain individual power, no state can be established. Authority may need to be oppressive to be effective. Hayek: order may not need to be planned from above : individual pursuing own interests can produce a predictable system. Schelling : interaction may produce predictable patterns, but does not necessarily increase social order. People don"t prefer segregation, but segregation is the outcome. Unregulated interaction of rational egoists produces an outcome that is unintended / unwanted. Smith : rational egoists can create social order in the absence of coercion. State of nature is homogenous - same desires / resources. Zero-sum game : if x has, y can"t have. Smith : individuals have different resources --> division of labour. Connection between individual and macro-level outcomes in complex. Adam smith, the division of labor, in h&h, 166-174.
