SC Lectures 2-6

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    Social capital and cooperation

    Readings:

    Campbell, J.K., 1964, Honour, Family and Patronage, Oxford: Oxford

    University Press, (selected pages).

    Ahn, T.K. and Elinor Ostrom, 2008, Social capital and collective action,

    pp. 70-100, in The Handbook of Social Capital (eds. D. castiglione,

    J.W. van Deth, G. Wolleb), Oxford: Oxford University Press.

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    Atomistic societyAtomistic society

    theoretical concept from anthropology and sociology (mid 20thcentury)

    lack of cooperation in the wider society

    cooperation is limited to nuclear family or extended kin network

    authors: Benedict 1942 , Honigmann 1946, Rubel & Kupfere 1968.

    Structural elements of atomistic society: lack of social ties outside

    the family. Non-family social ties are few and institutionalized, for

    example, client-patron ties, institutionalized friendship, ritual kinship.

    Cultural elements of atomistic society:pervasive distrust, hostility

    and aggression (physical and verbal), the role of rumours in

    maintaining the honour.

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    Cooperation

    Cooperation is the process of working or acting together with a purpose

    of achieving common goal.

    Fallacy of composition: If an action is in the collective interest of a

    group and if the members of the group are rational, then the group must

    be collectively rational, which is to say that the group must act in its

    interest just as each of its members would.(R. Hardin, Collective action,

    1982).

    Social dilemmasare situations in which collective interests are at odds

    with private interests.

    Three intellectual traditions:

    Game theory and Prisoners dilemma ( John von Neumann and

    Oscar Morgenstern, 1940-1942; Merill Flood and Melvin Dresher, 1950)

    Collective action problem(Samuelson, mid 1950s, Olson, 1965)

    The tragedy of the commons (G. Hardin, 1968)

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    Prisoners dilemma

    person B

    c nc

    c (1,1) (5,0)

    person A

    nc (0,5) (3,3)

    person A

    nc c

    (0,0)

    person B

    nc c

    (-1,2) (1,1)

    * Basic prisoners dilemma.

    Numbers are losses (years in prison).

    * Modified sequential Prisoners dilemma.

    Numbers are gains.

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    Collective action

    Collective action

    it is about collective goods (public or common goods)

    a group of individuals,

    a common interest among them, and

    potential conflict between the common interest and each

    individuals interest

    Collective goods:

    Public goods: goods are jointly produced, non-excludable

    and non-rivalrous, the problem of production of publicgood

    Common goods: goods are finite or diminishing, non-

    excludable but rivalrous, the problem of overuse of

    common good

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    Governing the common pool resources

    Elinor Ostrom

    (Nobel Memorial Prize in 2009)

    Success cases:

    Communal tenure in high mountain meadows and forests (Switzerland,

    Japan

    Irrigation communal institutions (Valencia, MurciaSpain, Philippines)

    Failure cases:

    Fisheries (Turkey, Sri Lanka, Nova Scotia)Goundwater basins (California)

    Conditons for success: clearly defined boundaries, collective participation

    in creating rules, internal monitoring, graduated sanctions, conflict-

    resolution mechanisms, right to organize ..

    Collective action concerns theregulation of

    the consumption of commons(fishing

    stocks, grazing lands, forests, water).

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    Solutions to social dilemmas

    first generation of collective-action theories(Olson 1965, Hardin, 1968):

    the assumption of universal selfishness people using public or common

    goods will not cooperate so as to achieve collective benefits.

    regulation by an external authority

    selective incentives privatization

    second generation of collective-action theories: the assumption of

    different types of individuals regarding the selfish/unselfish dimension

    (values) and the role of social networks and community structures.

    trust and norms of reciprocity, collective identification (intrinsic motivations)

    networks, communities and social ties (social sanctions)

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    Dynamic view of collective action

    J. Elster: Nuts and Bolts for the Social Sciences (1989)

    There are two mistakes to be avoided in trying to explain cooperative

    behavior. The crudest is to believe that there exists one privileged

    motivationsel-finterest, for example, that explains all instances of

    cooperation. A more subtle error is to believe that each instance ofcooperation can be explained by one motivation. Several motivations

    coexist and reinforce each other.

    Kantians: they want to do what would be best if all did it

    Utilitarians: they want to promote common (public) good

    Fairness motivation: they do not want to take free ride on the cooperation

    of others

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    Readings:

    Coleman, J.S., 1990, Relations of trust, in Foundations of Social

    Theory, Cambridge, MA: Harvard University Press (chapter 5).

    Trust

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    SOURCES OF TRUST

    strategic and non-strategic trust

    Truster

    (A)Trustee

    (B)

    Altruistic trust (Jane Mansbridge)

    Trust as a gift. One trusts more than warranted by evidence . Norms of reciprocity (treat the other as one would

    oneself wish to be treated), belief that cooperation is good (trust as pro-social ideal).Optimistic trust(Julian Rotter) Trust as personal disposition.

    Caring atmosphere at home, trusting and optimistic parents, genes.

    Cognitive trust(Yamagishi and Yamagishi).

    Education and experience of different others help develop social intelligence. People with higher social

    intelligence are more trusting.

    Strategic predictive trustB is trustworthyStrategic trust: trustworthiness (p) losses (L) and gains (G) (Hardin Russel, Coleman James): social and material incentives of the trustee, trust as encapsulated interest - trust exists when one party to the

    relation believes that the other party has incentives to act in his/her interest

    prior interactions with the trustee (truster has good information about trustee)

    social reputation (what others know about trustee)

    social networks (sanctioning power of networks)

    the role of coercive power, rule of law (sanctioning power of state)

    the role of institutions that embody the values or fairness and solidarity (signaling dominant values in thesociety)

    A trusts B

    Non-strategic trustA trusts

    p

    1-pL

    G

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    Trust in economic exchange

    (Jane Mansbridge: Altruistic trust)

    1.No established government, weak kin structures and weak social

    sanctionsin this society exchange relations must take place at once, on

    the spot.

    2.No established government but strong and extensive kin networks

    with sanctioning capacity.Kin networks allow exchange relations at adistance (overseas trade and long distance banking is carried on by close

    knit families or ethnic groups, multilateral reputation mechanism).

    3.No established government but overpayment of long distance traders

    (Genoa 12th century, bilateral reputation mechanism).

    4.Society has an established government supplemented with densereputational networks (the case of London merchant bankers).

    5.Established government, weak reputational networks,

    supplemented by a moral code, two commands: a) act in a trustworthy

    manner to strangers, b) begin interactions with strangers with a trusting act

    (modern society).

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    Interpersonal relations: the emergence of weak

    tiesReadings:

    Silver, A. (1997) Two different sorts of commerce: Friendship and

    strangership in civil society, in Weintraub and Kumar (eds.) Publicand Private in Thought and Practice, Chicago: Chicago University

    Press (pp. 43-72)

    Granovetter, M. (1974) The strength of weak ties,American Journal of

    Sociology.

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    Personal relations: Historical perspective

    15th century: Renaissance moralists

    How can anyone dream that mere simplicity and goodness will get him friends, oreven acquaintances not actually harmful and annoying? The world is amply

    supplied with fraudulent, false, perfidious, bold, audacious, and rapacious men.

    Everything in the world is profoundly unsecure..there is more honor and value

    in helping your own family than outsiders .a stranger abide you as an enemy,

    while a kinsman is always your friend.we find that there is really nothing more

    difficult in the world than distinguishing true friends amid the obscurity of so manylies, the darkness of peoples motives.

    L.B. Alberti (1404-1472) Italian artist, architect, poet, philosopher

    .

    17th century: Social contract theory

    In the state of nature, where there is no central authority, there is a war of all

    against all,and life is solitary, poor, nasty, brutish, and short.

    Strong central authority is needed in order to avoid the evil of discord and civil war.

    T. Hobbes, (1588-1679) English philosopher

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    Modern personal relations are profoundly disinterested relations. As such

    they are not a relict of the past, but are constituted by the impersonal order ofthe modern society.

    The new morality described by Scots, which is based on universal sympathy

    is a result of impersonalityestablished in the spheres of market transactions

    and state authority.

    Disinterested personal relations can vary from weak to very close social ties,

    depending on the personal affinities of the partners (i.e. gravitational model ofpersonal relationsproposed by Ferguson). Before commercial society, weak

    ties were either turned into strong ties or regarded with suspicion (dichotomy

    friend or enemy).

    Studies of social networks today show the importance of both weak and

    strong social ties (strong ties are important for mobilization of resources, and

    weak ties for the spread of information and coordination between different

    social groups and circles). Weak ties are a result of new universalistic

    morality described by Scots.

    Putnam distinguishes between bondingand bridgingsocial capitalon the

    baisis of a distinction between weak and strong social ties. Weak ties are

    more likey to be bridging ties than strong ties.

    New universalistic morality

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    Weak and strong ties, and social triads

    The situation of predominantly strong social ties (high emotionalintensity, intimacy, amount of time, reciprocity of services or loyalty)

    B C

    Forbidden triad

    A

    CB

    Closed triad

    A

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    In the situation of mixed strength ties (strong and weak), weak ties can

    become bridges between the triads of strong ties. Not all weak ties are

    bridges, but bridges tend to be weak ties.

    Bridging tie

    Brokerage

    Overlapping social circles

    B

    B

    B

    E

    A

    D

    C

    C

    A

    A

    C

    D

    D

    F

    E

    E

    F

    FG

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    Study: East Yorkers

    Community lost argument small networks

    sparse networks weak social ties

    formal roles as a source of ties

    in person contact

    weak social support

    no reciprocity

    local locus of social ties

    Community saved argument large networks

    dense networks strong social ties (kin, neighbourhood)

    in person contact

    kin, neighbourhood as a source of ties

    abundant social support

    strong reciprocity

    local ties and tightly bounded solidarities

    Community liberated argument large networks

    sparse networks

    moderate social ties (friendshipand work as sources of social

    ties)

    moderate/specialized social

    support

    uneven reciprocity

    differentiated networks in erson ICT

    Findings: 5+ intimates

    sparse networks

    weak and strong social ties (kin andwork- friendship relations)

    moderate/specialized social support

    uneven reciprocity

    differentiated networks, clusters of

    solidarities

    in person, ICT

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    core or ego-centric networks in the USA

    analysis of the trends 1985-2004

    Study: Core discussion networks in the USA

    Findings for 2004:

    Increased isolation,

    smaller and denser networks, less kin and especially non-kin ties,

    long duration, more frequent communication,

    higher racial diversity, less educational diversity,

    larger differences between education groups.

    Explanation: ICT?

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    Internet and social capital Internet is decreasing social capital

    online interactions are inferior to face-to-face interactions; internet competes

    with other activities; internet is a stressor that depresses people; not alluses of internet are social; internet blurs the work-home boundary;

    internet keeps people indoors; online ties are more homogeneous

    Internet is increasing social capitalnew forms of interaction increase the opportunity for weak and more

    diverse social ties; internet recruits people for offline interactions,

    increases communal and organizational participation; internet fills

    communication gaps in face-to-face contacts

    Internet supplements social capital

    life online is an extension of offline activities; internet is more useful for

    maintaining than creating new ones; the effects of internet will be

    evolutionary, increasing the individualization of social networks

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    Study: Social isolation and new technology

    Report: Pew Internet & American Life Project, november 2009

    http://www.pewinternet.org/~/media/Files/Reports/2009/PIP_Tech_and_Social_Isolation.pdf

    Findings:

    social isolation has not changed since 1985 (6% of population are

    isolated)

    discussion networks have shrunk by about a third since 1985

    networks have become less diverse because they contain fewer non-kin

    members

    ownership of a mobile phone and use of internet are associated with

    larger and more diverse core discussion networks

    internet use does not limit participation in local communities (internetusers are as likely to visit with their neighbours as anyone else; they are

    more likely to belong to a local voluntary group)

    internet does not pull people away from public places (cafes,

    restaurants, parks)

    ICT are used for local contacts and distant communication

    http://www.pewinternet.org/~/media/Files/Reports/2009/PIP_Tech_and_Social_Isolation.pdfhttp://www.pewinternet.org/~/media/Files/Reports/2009/PIP_Tech_and_Social_Isolation.pdfhttp://www.pewinternet.org/~/media/Files/Reports/2009/PIP_Tech_and_Social_Isolation.pdfhttp://www.pewinternet.org/~/media/Files/Reports/2009/PIP_Tech_and_Social_Isolation.pdf