parsons action scheme Class 06 | Advanced Microeconomics | Duncan Foley

Advanced Microeconomics: Information and Behavior in Political Economy | Class 06 Social Interaction (Part C) | Duncan Foley | Leo Model Professor of Economics at the New School for Social Research ( http://www.newschool.edu/nssr) | Spring 2016

Class 06 Social Interaction (Part C). The sixth class consists of various examples through which they examine the results that could be reached by modifying the canonical social interaction model.

At the beginning of the sixth lecture, the canonical social interaction model and studies are reviewed and different cases are visualized graphically in order to precisely define the meaning of the strategic contementarity and the strategic substatibility in the model. In the former strategic, the more the people that follow the same action the better the result, whereas in the latter, the more the people that follow an action, the less the chances are that one would wish to follow the same strategy. Additionally, an accurate description is given based on the quantal decision response. The Hawk and Dove cases are also presented as an algebraical example of how a biological chain of these two species tends to be in harmony and why none of the two species has an evolutionary advantage over the other. In the end, the audience is presented with examples of a strong strategic contementarity, in which the path dependence determinates to a great extend the winners.

parsons action scheme Class 06 | Advanced Microeconomics | Duncan Foley
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