ARBUS202 Lecture Notes - Lecture 12: Ultimatum Game, Perfect Competition, Egalitarianism
6 Apr 2017
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Document Summary
Distinguish between good outcomes and good decisions, philosophy helps us in the process of giving reasons. Principle: fairness (what does the group say is fair) Institutionalized rule governing how good are distributed group says how things will be distributed. The larger the group is the harder it becomes to come up with rules the group thinks are fair. The larger the society the more likely a market system is set in place (bring what you have to the table and we will trade) What do we gain by going over to a system of exchange. Resources will be distributed efficiently in a competitive market. You can"t make someone better off without making someone else worse off. First fundamental theorem: a perfectly competitive market will distribute resources efficiently. We are cooperators in society and competitive in the business world although we can come together and create value by cooperating.
