Envir100Lect8W10

Envir100Lect8W10 - Goals of todays lecture Compare and...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Goals of today’s lecture Compare and contrast the “invisible hand” with the “tragedy of the commons”. Understand a bit about supply and demand and other market mechanisms. Welcome back to Selfishness Week!
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Tragedy of the Commons 1. It’s better for the group as a whole if everyone makes Choice A compared to everyone making Choice B. 2. Each person individually prefers to make Choice B regardless of others’ choices. In these situations, individual incentives lead people to make personal choices that are bad for the group as a whole.
Background image of page 2
Not every situation is a Tragedy of the Commons! In many situations, individual incentives lead people to make personal choices that are good for the group as a whole. Sometimes we just get lucky. And sometimes this happens because of the “hidden order” that comes out of free- market economics, Adam Smith’s “invisible hand” metaphor. (Video)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Invisible hand versus Tragedy of the Commons
Background image of page 4
Adam Smith, The Wealth of Nations (1776) [Man is] at all times in need of the co-operation and assistance of great multitudes…The woolen coat, for example…is the produce of the joint labor of…[t]he shepherd, the sorter of the wool, the wool-comber or carder, the dyer, the scribbler, the spinner, the weaver, the fuller, the dresser, with many others…
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
These human interconnections (like an ecosystem!) are evident in… 17% 0% 83% 0% 1. “I, Pencil” 2. Stuff 3. Both readings 4. Neither reading
Background image of page 6
Adam Smith, The Wealth of Nations (1776) …[But man’s] whole life is scarce sufficient to gain the friendship of a few persons… and it is in vain for him to expect [help from] benevolence only… …It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity, but to their self-love,
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/13/2010 for the course ENG 189 taught by Professor Welbeck during the Spring '10 term at Eastern Oregon.

Page1 / 33

Envir100Lect8W10 - Goals of todays lecture Compare and...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online