Seminar week 8 Flashcards
What is a social norm?
It includes a social dilemma, which is a situation that creates conflict between the individual’s interests and the collective interests.
What is a conventional norm?
Unwritten rules, that everyone obeys to.
Give an example of a social and conventional norm.
Convention: driving on the left or right
Social norm: Taking out the trash on trash day too early. (It would be best if all did it on the permitted time, however people expect their neighbours do it as well, so they do it)
What is a second-order dilemma, and link it to the example of the social norm.
Second-order dilemmas are about the sanctioning of social rules in case individuals deviate from the norm. So the cost of sanctioning is awkward situation, and the benefit is that not all the trash is on the streets.
What is indirect sanctioning and give an example
Indirect sanctioning refers to a strategy where all players know that there is a threat that this strategy will defect once a player disobeys the norm. So when the neighbour takes his trash out too early (defects), you will do the same.
What is a disjoint, conjoint, and in between, and give examples.
Disjoint: beneficiaries and targets of a norm are different groups (tipping norms)
Conjoint: beneficiaries and targets of a norm are the same group (silent car norm)
In between: The norm also affects strangers so not only targets (dress code at church or mosque)
What is an externality and give an example.
If something is beneficial to you but has negative consequences for others (taking a car & bad for the environment)
What is exogenous and endogenous sanctioning?
Exogenous: sanctioning from outside (government, boss)
Endogenous: self-regulation santions (neighbour watch groups)
Give the requirements and give an example of a conventional norm
- Nash equilibrium is also Pareto optimal
Example: stag hunt
Give the requirements of a social norm
Generally: individually rational behavior leads to a collectively suboptimal situation
Game theoretically: a game with at least one Pareto-suboptimal equilibrium
Give an example of a second-order dilemma
To either use a paper cup or bring your own cup to protect the environment (public good). Once a social norm about waste reduction is established (people feel guilty when using a paper cup). A second order dilemma arises: under what conditions are people going to sanction (which is costly because it leads to an awkward situation).
