Summary: Advancing Society

Read the summary and the most important questions on Advancing Society

• Week 1

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• How would you define social interaction?

  Two or more people individuals connected through their actions

• Why social interactions? (2)

  1. We cannot avoid social interactions. They affect us in everyday life.
  2. The actions we and other make have consequences on us and on others.

• Why do actions we make have consequences on us and on others? (2)

  1. Conflict of interest
  2. Opportunity for mutual gain.

• The consequences of social interactions on us and on other depend on .. ? (3)

  1. The situation
  2. Our preferences
  3. Our expectations

• What are the consequences of pursuing self-interest in a social interaction? (3)

  It depends. It can either lead:
  

  • To results that are good by all participants,
  • To outcomes that are considered good by some, or
  • To outcomes that none of those concerned would prefer. 
    

• How can self-interest be utilized for the general good? (2)

  1. Governments limiting the actions that people are free to take,
  2. Peers imposing punishments on actions that lead to bad outcomes.

• When do social dilemmas occur ?

  When people do not take adequate account of the effects of their decisions on others.

• How to study social interactions?

  Game Theory

• What is an strategic interaction?

  • Each actor designs a plan of actions taking into account the possible actions of the other. 
  • The actions of the other affect me, and my actions affect the other.

• Why didn't you use Game Theory in Micro 1?

  Because the outcome of an interaction was assumed to be non strategic. Consumer choice did not depend on what anyone else chose. Moreover, the consumer and the producer were not engaged in a social interaction.