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Raymond Fisman

An economist’s view of cultural change. Raymond Fisman. Culture according to economists. Tells us how to behave when we can’t turn to a formal contract or set of rules for guidance…part conscience, part commitment, part coordination.

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Raymond Fisman

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  1. An economist’s view of cultural change Raymond Fisman

  2. Culture according to economists • Tells us how to behave when we can’t turn to a formal contract or set of rules for guidance…part conscience, part commitment, part coordination. • On the conscience of an average economist: “culture is just about trigger strategies.” • 2

  3. Culture as commitment • We can’t write a perfect contract to describe our obligations to an organization • Informal agreements fill in the gaps • Where does our knowledge of informal agreements come from? • The definition of “almost” • Costly decisions and “almost going off the rails” • 3

  4. Culture as coordination Kiss, bow, or… The high cost of changing norms Merging memo and meeting cultures • 4

  5. Culture and communication in the lab (Camerer and Weber) • Subjects communicate via IM • Paid based on rapidity with which one subject (“manager”) can get another subject (“employee”) to identify a sequence of pictures • Part II: After a number of rounds, new employee is added, and manager must get both employees to identify pictures • 5

  6. Culture and communication in the lab (Camerer and Weber) “UdayRao,” “Cubeville,” “Lady with typewriter” “Flowers in back,” “Macarena,” “Cupboard in back” • 6

  7. Merging cultures in the lab – “harder than we thought” (Camerer & Weber) • Subjects overestimate speed of merged firm • Average actual time: 86s • Average estimated time: 69s (p < 0.02) • “New” and “old” subjects blame each other for failed communication • 7

  8. Reforming a culture of corruption Super-citizen Mockus

  9. Changing culture in Bogota

  10. Changing the culture of Bogota • Public acts (rather than private enforcement) helped to reinforce the change in norms • Participatory elements helped citizens signal their own commitment to new norms (and sanction those who didn’t) • 10

  11. Economics, culture, and cultural change • Organizational economists are taking a more sophisticated, less under-socialized view of culture • Early work helps document the challenges to changing/merging cultures: Hopefully we’ll have more to say next time on what to do about it • 11

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