THE NETWORK ECONOMY: SESSION

THREEChallenging 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 Rebranca36Equilibrium: 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 Groupfrom 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 Turkeyfrom 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!