Amartya Sen

Question 1

What was the role of the civil rights movement in shaping economic policy?

Answer 1

The mid-20th century was characterised by a series of civil rights and independence movements, both on the domestic and international levels.

These movements prompted a new wave of economic thinking, which reintroduced social theories to economics and challenged the marginalist tradition.

Question 2

Why is Sen critical of Rational Choice theory?

Answer 2

Critical of Rational Choice Theory and models of self-interest in economics as it neglects the wider aspects of human behaviour

Sympathetic Behaviour: When another’s welfare directly impacts your own

Commitment Behaviour: Guides actions based on moral/ethical or socially influenced duty

Conflicts with the assumption of self-interest

Explains behaviour and decisions that are ‘inefficient’

Question 3

What is the relevance of commitment psychology to public goods?

Answer 3

Commitment is a useful addition to behavioural models regarding public goods; it is not very relevant to private goods as individuals rarely consider ‘duty’ in everyday activities (e.g. boycotting products in the name of foreign policy)

Critical of the abstract framework that assumes self-interest as it is unhelpful in solving issues, such as the free rider problem or tragedy of the commons

Impossible to supervise all activities and have a continual system of effective rewards

It is better to use the social psychology of commitment to effectively distribute public goods