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View Diary: Morning Feature: Animal Spirits, Part I - Irrational Economic Actors (72 comments)

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  •  Cargo Cult? (10+ / 0-)

    I think that's what you are referring to here. At least, it's related.

    I have a question for Crissie about what the authors seem to be saying: Element # 3 is "Corruption and Bad Faith", the negative flip side of fairness. Where does this come from (other than basic human nature predominant in some people)? Is it when there isn't enough regulation, or is it when people with an overdose of those traits get into power, or what? Are greedy people drawn to finance or does finance make them greedy?   Are we unable to hold this type of action under control ourselves, or is it something else? All of these questions come from your statement

    When conditions are ripe for corruption, the authors argue, executives behave as predators rather than treating their businesses as providers of goods and services

    What makes "conditions ripe for this type of behavior?

    Good morning to all. I'm off to do some weeding in a very neglected flower bed, and will catch up later.

    •  That's surprisingly complex. (5+ / 0-)

      The presence and enforcement of regulation is one of the conditions Akerlof and Shiller cite for whether there a culture of corruption will predominate, but it's more than that.  It also has to do with the acts and values we celebrate in contemporary stories.  If our stories celebrate individuals pursuing their own ends - e.g.: the "greed is good" stories of Randian objectivism - more people will be more likely to act as individuals and selfishly pursue their own ends, including by cheating if they can.

      Good morning! ::huggggggggggs::

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