Spontaneous Order Theories

1

• Spontaneous Order Theories
• Unlike power theories (top-down), these are
  bottom-up (predictability or coop emerges as
  by-product of individual actions).
• Hayek All you need to know about Hayek comes
  from my lecture (you didnt have to read the
  article).
• Hayek discusses two types of order (focusing on
  predictability).
• 1) Kosmos (spontaneous) Eg, market, society.
  Superior for efficiency, complexity.
• 2) Taxis (man-made). Eg, orgs, govt. Hayek
  against govt interference in market, but also
  argues norms required to make spontaneous order
  beneficial (ie, cooperative).

2
Axelrod I How does cooperation emerge among
self-interested individuals?

• Prisoners Dilemma
• Models situation in which individual incentives
  motivate action not in best interest of the
  group, all worse off than if cooperated
  (suboptimal equilibrium).
• b/c defection always best individual strategy
• Emergence of cooperation requires iterated games.

3

• Axelrod-2 Live let live strat. in trench
  warfare
• Key point spontaneous coop can develop even with
  opposing interests
• Small immobile units iterated PD game.
• Lessons of this study for PD game
• Truce ? value of mutual cooperation
• ? retaliation for violation.

4
Smith Critiques

• Adam Smith Propensity to barter desire for
  goods/ ? DoL ? increased productivity (? wealth)
  ? social order b/c rising tide lifts all boats.
• Assumes positive-sum resources and rational
  egoism
• Critique of Spontaneous Order Theories
• Polanyi (historical) laissez faire capitalism ?
  regulation
• Unrealistic assumptions, esp. PD
• What about social structure?

5

• II. Groups Networks Theories
• Simmel Two types of social organization
• Concentric
• organic/by birth
• Social order by reinforcing conformity
• High social control

Family Village Clan
6
Simmel, cont

• Juxtaposed
• rational criteria
• Modern (heterogeneous) society
• ? individuality, s loyalty, ? group isolation

7
Gellner

• Talks about why people join groups (need each
  other for safety survival)
• Anarchy ? cohesion/trust
• No state pastoralism ? formation of tribes for
  defense.
• Also talks about ties across groups. Ritualized
  betrayal ? fluid/permeable associations. Prevents
  one getting too strong groups self-police.

8
Tocqueville

• Equality feared as source of conflict
• In America, political freedom prevents conflict
  b/c voluntary assoc help people internalize coop
  values.
• Thinks centralized govt makes men less
  self-sufficient, less bonded together

9

• Hechters Theory of Group Solidarity
• Assumes instrumental rationality we join groups
  for net benefit, for goods we cant produce
  efficiently ourselves
• Solidarity varies w/ visibility (for social
  control) dependence.

10
Hechter, Friedman Kanazawa

• Group Membership means benefits, but also
  obligations (on time, conformity to group norms,
  contributions, etc.)
• State free-rides on local social order, esp.
  that produced by deviant groups.
• State will tolerate deviant groups unless they
  threaten state power, or organized grps.

11
Final Exam

• 25 multiple choice questions worth 4pts/ea
• Exam focused on post-midterm material, but asks
  some questions comparing with earlier theories
  (Hobbes and Durkheim), and the theory groups
  (e.g., comparing group/network theories with
  theories from 1st part of course).
• 2-4 questions per theorist.
• Remember, take your time, cross off answers you
  know are incorrect, write yourself notes
  (diagram) for complicated/multi-part questions.
• Bring scantron will need to leave all personal
  possessions at front of room.