economics LO18872

Simon Buckingham (go57@dial.pipex.com)
Mon, 17 Aug 1998 13:19:46 +0100

Replying to LO18861 --

Dale Emergy wrote in replying to LO18851 --

>Lee,
>
>> Another hole in utility theory/economics because of "satisficing"--
>>
>> The general idea of the received theory is that individuals act in their
>> own best interests.

I am a great believer in micro-economic theories including utility theory.
No-one knows the preferences of an individual better than that individual.
That individual may not know exactly what their interests and preferences
are- but they are better placed than their managers and politicians or
anyone else to interpret them. Don't make the old socialist's mistake of
using the excuse that people "only" "satisfice" to justify interventions
supposedly on their behalf and in their best interest. Bounded
rationality/ limited understanding hinders us all- but we are in the best
place to interpert our own personal beliefs.

In terms of learning, I would say that feedback from communication can
help people to understand how other people are interpreting their
behavior, but no-one should force or interfere with that individual's
decision process. That decision maker may also use communication and
feedback to try to explain how they are feeling inside. This exchange can
be a learning process if it is a voluntary and a genuine attempt at
building understanding.

Micro-economics has much to offer every single person to help them to
understand their actions and thoughts. It should be not be dismissed
because it is imperfect- everyone and everything is imperfect- the
question becomes which things are less imperfect and how can we try to be
the best we can be despite our imperfections. Micro-economics is essential
to this process.

regards, sincerely simon buckingham, unorganization: business not
busyness! http://www.unorg.com/indiv.htm

-- 

"Simon Buckingham" <go57@dial.pipex.com>

Learning-org -- Hosted by Rick Karash <rkarash@karash.com> Public Dialog on Learning Organizations -- <http://www.learning-org.com>