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 didn’t 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 gov’t 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? Prisoner’s 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, con’t • 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 gov’t makes men less self-sufficient, less bonded together

9. Hechter’s Theory of Group Solidarity • Assumes instrumental rationality: we join groups for net benefit, for goods we can’t 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.