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 symbol from
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)
But What About Social Man
Hillel Social Group from HillelUW
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)
The Cost of a Turkey?
Wild Turkey from amkhosla
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!