Exam 1 Vocab Flashcards
sovereign
someone with absolute power which is indisputable according to Hobbes
politics
the authoritative allocation of resources and values within a community
delegation
state of nature
what Hobbes thinks of the
normative question
the way the world “should” be
positive question
can help answer normative questions (not about how the world should be, but how it is)
central challenge of constructing order
factions
auxiliary precautions
principal
the person that is “hiring out” for the other to do the job
agent
the person that is being “hired” to do the job
adverse selection
when the information asymmetry exists before the contract is signed
moral hazard
when the information asymmetry exists after the contract is signed
contract
compensation in exchange for completion
asymmetric information
when either the principal or the agent has information that the other does not have access to
reservation utility
the outside option
political community
constitutive stories
accounts that present membership in a part
economic stories
joining will advance your economic wellbeing
political power stories
joining will advance power/social influence of each member
stories of peoplehood
public good
a non-excludable, non-rival good
non-rival
anyone can accessit
non-excludable
the use of it does not take away from anyone else
free-riding
undermine the provision of a public good, they do not contribute to the public good
collective good
prisoners dilemma
the idea that if both stay silent, they will have the best possible outcome, but usually they will not both stay silent
selective incentive
coordination problem
focal point
implication
primitive
coercion
elections
special case of principal-agent relationship: citizens and elected officials
