the network economy: session three challenging behavioral assumptions
TRANSCRIPT
THE NETWORK ECONOMY: SESSION
THREE
Challenging Behavioral
Assumptions
The Role of Theory
Domino Theory at Work: Courtesy of Rosendahl
All Social Sciences Make Behavioral Assumptions
Economic Man
business man with a dollar symbolfrom filipinoj
What Do We Mean By Rational?
Spock: Courtesy Wikipedia
Why is Rationality a Critical Assumption?
Equilibrium: Courtesy of Rebranca36
Equilibrium: Courtesy of Rebranca36
Veblen’s Famous Caricature
The hedonistic calculator of man is that of a lightening calculator of pleasure and pains, who oscillates like a homogenous globule of desire and happiness under the impulse of stimuli that shift him about the area, but leave him intact. He has neither antecedent nor consequence. He is an isolated definitive human datum in stable equilibrium except for the buffets of the impinging forces that displace him in one direction or another. Self imposed in elemental space: he spins symmetrically about his own spiritual axis until the parallelogram of forces bears down upon him, whereupon he follows the line of the resultant. When the force of the impact is spent, he comes to rest, a self-contained globule of desire as before.
To The Rescue? Bounded Rationality
Do We Need a Guide if Everyone is Blind. (Courtesy of Jeanfou)
Picking the Appropriate Path
Two Roads Diverged: Courtesy of mhwildwood
Testing Assumptions
Photo “Don’t Assume: Courtesy of Teotwawki
Measurement Tools
Photos Courtesy of Wikipedia
Interdisciplinarity & Behavioral Economics
Harvard Business Review (Courtesy of Run Comrad)
Empirical/Experiment-based
Magnifying Glass: Courtesy of FMackinlay
Predictably Irrational
Choices are Relative & Relationally Based
Courtesy of Meg and Fred
The Role of Imprinting
Goslings: Courtesy of Red Star
Self Herding
Elephant Herd Coming for Water in the Late Evening: Courtesy of Wild Images
Free Lunch?
Free Lunch (courtesy of LexenGer)
Arousal—At What Cost?
Dr. Jeykell and Mr. Hyde? (courtesy of New Yorkled)
Valuing Possessions
Worldly Possessions: Courtesy of Dessertdiva
The Open Door
Opening doors: Courtesy of Blurred Photo-Aron
Lies and Half Truths
Lies & Half Truths: (courtesy of Blistered.Skies)
Predictions or Explanations?
Tarot Cards (Courtesy of bdwilson)
Blogging Question
To what extent do social norms enter into your economic decision making process. Are they more influential under some circumstances than others. Explain. Have you ever blundered, and failed to recognize that a given situation called for a specific type of response? Tell all!