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Social Choice and Culture
Meeting of the Society for Social Choice and Welfare, Moscow 2010
2010-07-22 1
Pieter H.M. RuysTilburg University
July 2010
1. Introduction
• Social preferences are derived from individual preferences:– Methodological Individualism
• The utility concept: capacity to enjoy something • The social choice concept: pairwise comparison of • The social choice concept: pairwise comparison of
alternatives generates a ‘best’ one
– Assumed is:• A homogeneous Level Playing Field on the level of
voters
2010-07-22 2
The relational capacity approach
– Capacity of an organism to interact with another organism (an individual, an animal, a political party, a football team)
• The Positional Capacity concept • The Positional Capacity concept
– A hierarchy of capacities is expressed in patterns• Existing (inherited) patterns• Virtual patterns
– An Organism is an activated pattern.
2010-07-22 3
Social choice
• Western voting democracy: – What is the individual’s meaning or intention of a vote cast
by her or him? In the US, compared to Pakistan? – What is the elected person’s interpretation of the passage of – What is the elected person’s interpretation of the passage of
power from the masses to the parliament?• The classical assumption that individual citizens have
received a right and nobody should question their sovereignty about using this right?
– Majority rule: destroy the existing culture?– Emancipatory motives: integrate two cultures!
• We also need a Level Playing Field on the (higher) cultural level.
2010-07-22 4
Outline
1 Introduction: Social preferences are only derived from individual preferences
2 The capacity approach: a vertical ordering of relational capacities3 An example: Hofstede’s cultural dimensions as positional capacities
2010-07-22 5
3 An example: Hofstede’s cultural dimensions as positional capacities4 Social choice and culture:
Social preferences determining individual preferences5 The horizontal equivalence relations: Level Playing Fields6 The GLR-Theorem on stability; stabilizing institutions7 Duality between the Value Domain and the (institutional) Power
Domain8 Conclusions: from a single level playing field of alternatives (Arrow) to
a multilevel playing fields of capacity patterns
2. The capacity pattern approach: a vertical ordering of relational capacities
• A relational capacity of an organism is its ability to attract or to repulse one or more other organisms and to interact with those other organism if attraction results in a match.
• A relational capacity is composed of elementary capacity-• A relational capacity is composed of elementary capacity-qualities; the composition and organization of these capacity qualities, called pattern, constitute the organism.
• Example: cultural dimensions of a nation state (Hofstede)• Rawls, Sen
2010-07-22 6
A society
• A society Σ = Ω(K), N(ω), ω(V),ω(P) is represented by six concepts:– A set of hierarchically ordered positional capacities, K;– an organism possibility set, containing realized, patterns – an organism possibility set, containing realized, patterns
of relational capacities, Ω(K);– A set of virtual patterns, ω;– a population with teams in level playing fields for each
relevant pattern of relational capacities, N(ω);– a welfare criterion for patterns aiming at maximizing
diversity in relational capacities in the value domain, ω(V); – an power criterion for incorporating a potential organism,
ω(P).
2010-07-22 7
Vertical Ordering of Capacities
• A positional capacity k2 in K0 succeeds k1, k1≤ k2, if and only if k2 = k1٧k2;
• k1 in K0 precedes k2, k1≤ k2, if and only if k1 = k1٨k2. • A positional capacity that succeeds another positional capacity • A positional capacity that succeeds another positional capacity
has a lower level and a greater diversity (richness).• A positional capacity that precedes another positional capacity
has a higher level and a greater coverage (power).•
2010-07-22 8
The capacity space
• The capacity space, K, in a society Σ is spanned by a finite set of specific capacity-qualities, K0, represented by the n-dimensional Euclidean (projective) geometry, En(F2), over the field of integers modulo two, denoted by K = (K0, En(F2)).
• A vector in the capacity space is called a positional capacity. It • A vector in the capacity space is called a positional capacity. It consists of zeros and ones, indicating the presence (value 1) or absence (value 0) of a capacity-quality.
2010-07-22 9
3. Example: Hofstedes cultural dimensionsas positional capacities
1. Power distance (PDI)2. Individualism / collectivism (IND)3. Masculinity / femininity (MAS)3. Masculinity / femininity (MAS)4. Uncertainty avoidance (UAI)5. Long- / short-term orientation (LTO)
These cultural patterns affect individual preferences
2010-07-2210
Description of cultural dimensions
• Power Distance (PDI):– The extent to which the less-powerful members of society
accept that power is distributed unequally (deep hierarchy)• Collectivism – Individualism (IND):• Collectivism – Individualism (IND):
– People belong to ‘in-groups’, which ‘look after them’ in exchange for loyalty.
• Masculinity – Femininity (MAS):– Emphasis on achievement and success – on caring for
others and quality of life• Uncertainty Avoidance (UAI):
– People feel threatened by uncertainty and ambiguity and tryto avoid these situations.
2010-07-22 11
PDI IVD MAS UAI
USA 40 91 62 46
UK 35 89 66 35
Netherlands 38 80 14 53
Sweden 31 71 5 29
Denmark 18 74 16 23
Italy 50 76 70 75
2010-07-223
Greece 60 35 57 100Poland 68 60 64 98
Belgium 65 75 54 94
France 68 71 43 86
Germany 35 67 66 65
Austria 11 55 79 70
India 77 48 56 40
Japan 54 46 95 92
Mexico 81 30 69 82
Pakistan 55 14 50 70
Venezuela 81 12 73 76
PDI IVD MAS UAI
USA 1UK 1 0Netherlands 1 0Sweden 1 0 0Denmark 0 1 0 0Italy 1 1
2010-07-223
Greece 1Poland 1Belgium 1 1France 1Germany
Austria 0 1India 1Japan 1 1Mexico 1Pakistan 0Venezuela 1 0 1
Scotch whisky and power distance
100
Regular Consumption Scotch Whisky (r = .74)
0
50
FRA POR GRE SPA ITA NET GER SWI FIN NOR IRE DEN AUS
Power Distance
© Marieke de Mooij (2011)
Car ownership and individualism
100
Percents of households that own a car. r = .83
10
55
USA UKCANNZLITAFRASW
EIR
ENORGERPOLCZESLKJPNBRAMEXMALCHL
Individualism-collectivism
© Marieke de Mooij (2011)
Uncertainty Avoidance (UAI)
100
120
140
160
Second hand cars
120
% Preferring new cars 1970 - 1991 - 1997
UAI
2010-07-2216
0
20
40
60
80
GRE BEL FRA AUS FIN NET IRE SWE
Onzekerheidsvermijding
Eurodata 91: 1e & 2e auto tweedehands gekocht
EMS 95: 1e auto tweedehands gekocht
0
60
POR SPA ITA GER SWI NOR UK DEN
#REF!
#REF!
#REF!
#REF!
© Marieke de Mooij (2011)
60
120
UAI+
Car buying motives
France
Spain
Portugal Greece
Belgium
GermanySwitzerland
ItalyAustria
Finland
FASTTECHNOLOGY
DESIGNSTYLEFASHION
RenaultCitroën
Audi, Volkswagen, BMWAlfa Romeo
0
60
0 50 100
UAI-
MAS
Sweden UK Ireland
Switzerland
PolandNetherlands
USA
Finland
Denmark
Norway
SAFETYFUNCTIONALVALUE STATUS
POWERBIG
FEM
SUVVolvo
© Marieke de Mooij (2011)2010-07-22 17
4. Social choice and culture:
• Social preferences are co-determining individual preferences
• Patterns and democracy:
• Secularism vs. religiosity
• Compromises of democratic politics vs. violent extremism
• The West as enlightened society to be emulated vs. the West as calculating imperial power to be resisted
2010-07-22 18
The Organism Possibility Set
• An organism, F, identified by its pattern of capacity-qualities in the capacity space, is represented by a digraph, F = G(K, DF), where DF is the set of capacity-qualities that potentially match externally with one or more other organisms.
• The set of organisms in the society Σ is called its organism • The set of organisms in the society Σ is called its organism possibility set and denoted by Ω(K).
• Consider two organisms in Ω(K); the organism F1 precedesorganism F2, if the least upper bound of F1 precedes the least upper bound of F2. An organism F1 that precedes another organism, F2, is positioned at a higher level in the OPS. A pathof organisms is a sequence of succeeding organisms.
2010-07-22 19
A hierarchy of organisms
t(k1) Level 1
2010-07-22 20
t(k21) t(k22) t(k23)
t(k33)
Level 2
Level 3
Level 4
5. The horizontal equivalence relations: Level Playing Fields (LPFs)
• Given a society Σ= Ω(K), N(ω), ω(V),ω(P), with a pattern-profile p= (pa, pb, …,pc) in Ω. The individuals having the skill to activate pattern pi belong to the set N(pi), called a set of specialists for pattern p . specialists for pattern pi.
• Given a society Σ(K, Ω, N), with a pattern-profile p in Ω. A subset of N(pi) that is assigned to activate an organism with pattern pi is called a team if all its members interact and no member interacts with a member outside the team. The set of teams in N(pi) is called a level playing field for the pattern pi, and denoted by LPF(pi).
2010-07-22 22
Mathematical Property of a LPF
• The pair (N(pi), LCF(pi)) is a matroid, where the set of teams in LPF(pi) is equal to the set of minimal dependent subsets of the matroid, for each pattern pi in Ω The set (LCF) constitutes the set of minimal dependent subsets in the population N, which defines a matroid. defines a matroid.
• A matroid is finite set and a collection of its subsets (called independent sets), such that (i) the empty set is independent; (ii) any subset of an independent set is independent; and (iii) for any two independent sets there exist an element in the larger set such that when this element is carried over to the smaller set, this new set remains independent.
2010-07-22 23
Social Property of a LPF
• A homogeneous population on a certain level embedding:
– Virtual (non-activated) patterns on the same level– Chaotic, unstable and probabilistic matches– Chaotic, unstable and probabilistic matches– Context of competition– Imitation and learning
– Social entrepreneur activating a feasible pattern• Stabilizing by institutionalizing • Implies a higher level of LPF
2010-07-22 24
6. The GLR-Theorem on stability;stabilizing institutions
At a single Level Playing Field for binary patterns, economic agents cooperate through the activation of potential bilateral economic relationships.
Within such a relational structure there emerges a certain Within such a relational structure there emerges a certain cooperation structure, or “activity (matching) pattern".
These activities are universally stable, i.e.; for any preference profile, no agent has the incentives or the ability to change the prevailing activity pattern, if and only if
• The matching structure is bipartite in the sense that there exists a partitioning of the set of economic agents.– This is giving economic agents roles: an institutional
property.2010-07-22 25
7. Duality between the Value Domain and the (institutional) Power Domain
• Value capacities (characteristics)
• Power capacities (characteristics)• Power capacities (characteristics)
• A fit between the two
2010-07-22 26
A hierarchy of value characteristics Level
Value characteristics
Team assignments
1 2( ) ( ), ( ),..., ( )rT V t v t v t v=ℓ ℓ ℓ ℓ
Types of services (value generating
services)
2010-07-22 27
ℓ = 1
Normative values
Society-wide group
Communal services
(Body of rights) ℓ = 2
Interpersonal
values
Specific groups
Social Services
(Access to …knowledge)
ℓ = 3
Individual values
Individuals
Private services
(Utility generating) Table 1. A
A hierarchy of power characteristics determining power teams at three levels
Level
Power
characteristics 1 2 3
1 2 3
, , P P P P
P P P
=⊂ ⊂
Team assignments
1 2 3( ) ( ), ( ), ( )T P t p t p t p=ℓ ℓ ℓ ℓ
Mode of Rationality (Decision mechan-
ism)
2010-07-22 28
1 2 3P P P⊂ ⊂
ℓ = 1
Public powers
Society-wide group
Leader rationality
ℓ = 2
Social powers
Specific groups
Rule rationality
ℓ = 3
Private powers
Many small groups
Act rationality
Examples of rule-rationality
• The behavior of ants in an ant-colony: – Act-rational behavior of female worker ants is suppressed in
favor of rule-rationality, resulting in an evolutionary success story of some 150 million years.
• The subprime financial crisis: – Act-rationality prevails over rule-rationality and the system
almost collapses;
• Internalized rule-rationality:– Moral behavior.
2010-07-22 29
Transaction value and interaction value
top (CEO)
Provider
Principal-Agent relations
A Firm in a Market
2010-07-22 30
Diagram 5: Interactions and Transactions by a Firm
Front positions: Service
Performers Service
Receivers
Middle management
Provider (Supplier)
Procurers (Demanders)
Interactions
Transactions
Relational actions (services, value generating)
Performers’ Actions
Receivers’ Actions
Collective
performance (Level 1)
Cooperative performance
(Level 2)
Individual performers
(Level 3)
Individually
2010-07-22 31
Collective utilization (Level 1)
Community services
Socially performed public
services (SGI)
Individually performed
public services (SGEI)
Cooperative utilization (Level 2)
Community performed social
services
Social services (SSI)
Individually performed
social services
Individual utilization (Level 3)
Community performed individual services
Socially performed services for individuals
Individual services
Transactions (power relations)
Providers’ Actions
Stakeholders’ Actions
Public
provision (Level 1)
Cooperative provision (Level 2)
Individual provision (Level 3)
Public-Private
2010-07-22 32
Public acquisition (Level 1)
Public transactions
Public-social transactions
Public-Private transactions
(PPP); outsourcing )
Cooperative acquisition (Level 2)
Social-Public transactions
Social transactions
Social-private transactions
Individual acquisition (Level 3)
Private-Public transactions; ballot box democracy
Private-social transactions
Private transactions
8. Conclusion
• From – a single level playing field of alternatives (Arrow)
• to • to – a multilevel playing fields of capacity patterns
2010-07-22 33