Soci250 Sociological Theory Module 5 Vilfredo Pareto Fran ois Nielsen Department of Sociology University of North Carolina Chapel Hill Spring 2007 Outline Main Themes Life Influences Psychosocial Schema Morphological Schema Main Themes Pareto s contribution to rational model of economics extension to non logical actions separating residues derivations distribution of income model for mobility in social structure model of circulation of elite theory of revolutions Vilfredo Pareto 1848 1923 Life Influences Early life Pareto engineer born Paris father exiled Italian baron mother French 1850 back to Italy secondary school in classics Latin Greek then Polytechnical U in Turin 1869 thesis on principles of equilibrium of solid bodies RR engineer then general manager of Italian RR Vilfredo Pareto 1848 1923 Life Influences Middle life Pareto economist 1889 marries Alexandra Bakounin 1891 reads Principles of Pure Economics by Maffeo Pantaleoni studies economists Walras Cournot Edgeworth 1893 replaces L on Walras at U of Lausanne Switzerland 1896 Course in Political Economics Vilfredo Pareto 1848 1923 Life Influences Later life Pareto sociologist 1898 inherits fortune moves to C ligny Switzerland 1901 Alexandra leaves him returns to Russia 1902 Jeanne R gis moves in 1909 Manual of Political Economy 1916 Treatise in General Sociology ca 1923 marries Jeanne R gis 1923 dies in C ligny Vilfredo Pareto 1848 1923 Relationship to Fascism 1922 Fascist Party led by Mussolini takes over power in Italy Mussolini professes admiration for Pareto 1922 Pareto agrees to represent Italy to League of Nations 1923 Pareto appointed Senator of the Kingdom of Italy 1923 two articles in Gerarchia expresses a certain degree of sympathy for fascism but specifies that it must be liberal Aron II 1923 dies on 19 August Vilfredo Pareto 1848 1923 Relationship to Marxism Pareto has studied Marx not sure for Durkheim or Weber 1902 Socialist Systems Marx s economic theory of value exploitation etc makes no sense Marx s sociology is much better but class struggle consists of conflict between two elites revolutionary elites always present their cause as cause of people as a whole once in power they become themselves oppressors this circulation of elites will not stop with proletarian revolution as Marx believes in one of his last articles Pareto argues Marxism should be taught in Italian universities Vilfredo Pareto 1848 1923 Outline of Sociological Contributions Pareto s work can be divided into two parts Schumpeter Psychosocial Schema economics logical rational actions typology of actions fundamental hypothesis residues derivations Morphological Schema distribution of income social structure circulation of elites social system Psychosocial Schema Economics Logical Actions From Pareto s work in microeconomics Indifference curves of an individual for bread wine Edgeworth assumes individual utility derives indifference curves Edgeworth box points represent different combinations of bread wine individual always tries to climb up the pleasure hill Psychosocial Schema Economics Logical Actions From Paretos work in economics cont d Pareto utility ambiguous misleading connotations no need to assume cardinal utility only preference ordering adopts purely subjective definition calls it ophelimity indifference curves are the primitive notion ophelimity derives from indifference curves not the other way around Psychosocial Schema Economics Logical Actions From Paretos work in economics cont d using two boxes one for each individual A B obtain representation called Edgeworth Bowley box can show what combinations of goods A B will voluntarily exchange set of all such combinations called Pareto frontier can derive exchange without comparing individual utilities Pareto optimum is state of society such that no one can be made better off greater ophelimity without making someone else worse off lower ophelimity only optimum concept that does not compare individual utilities Psychosocial Schema Typology of Actions Economic roots of Pareto s typology of actions economic action is propotype of logical action e g merchant buying stock when expects price to rise today called rational action logical action defined as one logically linked to goal both subjectively from the point of view of actor and objectively from point of view of outside observer with broader knowledge other actions are non logical Psychosocial Schema Typology of Actions O action objectively linked to goal result S action subjectively linked to goal Type of action O S O S Logical O S Non logical 1 Non logical 2 Non logical 3 Non logical 4 O6 S examples of non logical actions type 1 some customs type 3 reflexes type 2 magic ritual e g sacrifice to Poseidon for safe sailing type 4 action with unintended consequences e g Bolshevik revolution ends up in dictatorship Pareto recognizes notion of objective link itself function of progress of knowledge Psychosocial Schema Sociology is Study of Non logical Actions Study of non logical actions economics is the study of repeated logical actions it is often successful in predicting economic behavior the rational model of economics maximization of subjective utility is powerless in explaining non logical actions the study of non logical actions is a task of sociology but how does one study non logical actions two observable aspects of non logical actions actions themselves reasonings used to explain justify actions e g act act of military heroism reasoning warrior dying sword in hand enters Walhalla Psychosocial Schema Residues Derivations Pareto s method Relationship of actions A and derivations D with residues O analyze a large number of actions A with the reasonings used to explain them D use a kind of informal content analysis find constant elements these are residues O variable elements are derivations D e g prohibition of homicide O justified in many different ways D Psychosocial Schema Residues Derivations Pareto s method cont d often assumed D A reasons given D are cause of action A but implausible findings of neuropsychology part of the brain rationalizes actions motivated by other part of the brain A D slightly more plausible most likely O A O D residues produce both A D Psychosocial Schema Residues Derivations What are residues residues O may reflect certain instincts derivations correspond to work of the mind to explain O residues do not include all instincts only the ones producing derivations because of the way residues are