Ch. 1: LogicUnderstand all terms and the logic.Core concepts: what are institutions, what they do, why do we have themPolitics definitionDefinition:Coordination problemsPrisoners dilemma how do we solve it?(free riding and tragedy of commons)Transaction costs, conformity costsDelegation- what is it? Why do we do it? What problems does that create? Why is it important?August 14, 2013Assumptions Every political actor is rational They can always choose among alternatives They can always rank their alternatives Preferences are transitive A > B > C, A is not greater than C Will always choose A when presented w/ the same choices over and over Ex. Why would you chose McDonalds when you could choose Olive Garden?Logic (Politics based on conflicting ideas) Choices breed conflict Conflicting interests Conflicting values Conflicting ideas about how to allocate limited resources (Ex. money) Politics —How people attempt to manage conflict Process through which individuals and groups reach agreement on a course of common or collective action Politics matter When politics fail? Anarchy Civil War Bargaining and Compromise are required to reach goals Those who create government institutions tend to regard preferences as “givens” Individuals know what they want Must be reconciled if they are to agree to some common course of action Fundamental problem Effective Political Institutions Set of rules for reaching and enforcing collective agreements (without rules we have chaos) Unstructured negotiation rarely yields a collective decision everyone can accept Ex. Obama and Boehner trying to fix the fiscal cliff in 2011-2012 Institutional design (how you set up rules) – is a product of politics Constitution is a product of political compromiseConstitutions Establish a nation’s governing institution Set rules that these institutions must and must not follow to reach and enforce collective agreements Might be a highly formal document May be informal – understanding based on centuries of precedent and lawGovernments Consists of these institutions and legally prescribed process for lawPower vs. Authority Offices – confer their occupants specific authority and responsibility Authority —the acknowledged right to make a particular decision Power —refers to an office holders actual influence with other office holders Institutions are stable and resist change BECAUSE Institutions persist beyond tenure of office holders who occupy them The people who are affected by them make plans on the expectation that current arrangements will remain Those who seek change typically cannot agree on alternatives Institutions are embedded with certain core values (Ex. Popular rule) Balanced with equally fundamental rule that government must protect certain individual liberties even when a majority insists otherwise Logic embedded in our institution How members of a community should engage to pursue a common goalCollective Action Problems In every instance of collective actions, nations (democracies) face challenges (sometimes severe) Not having these 3 things will cripple a government Comparing preferences Agreeing on a course of action that is preferable to doing nothing Implementing and enforcing the collective choice Two types of collective action challenges 1. Coordination—members of a group must decide individually what they want, what they are prepared to contribute to the collective enterprise, and how to coordinate their efforts with others. 2. Prisoner’s Dilemma—arises whenever individuals decide that even though they support some collective undertaking, they are personally better off pursuing an activity that rewards themselves despite undermining the collective effort. (same goal but don’t contribute to the goal) Ex. Everyone agrees to pay—someone doesn’t pay—someone has to pick up the slack from where the other person didn’t pay. Coordination Problems increase with the size of the group Ex. Quartet vs. Orchestra Ex. 2 Senate vs. House of Representatives Sometimes its useful to delegate the task of solving the problem to a leader Large number= generally unachievableAugust 19, 2013Recap Institutions resolve coordination problems and can alleviate the problem of the prisoners dilemma  Coordination problems and prisoner’s dilemma are 2 main problems government faces: institutions were designed to diminish collective action problemsCoordination Other solutions Simple, self-enforcing rules: traffic light Identify a focal point to targetPrisoner’s Dilemma Always present in collective action and can bring action to a halt Arises when individuals would benefit from cooperating with each other, also have powerful and irresistible incentive to break the agreement and exploit the other side Only when each party is confident that the other will line up to an agreement,can they successfully break out of the dilemma and work to their mutual advantages Ex. When cleaning an apartment, you expect others to do it so you slack off and the apartment doesn’t get cleaned Ex. 2 In NCIS, criminals all agree to say nothing, each cop tells the other criminal that if they talk, they get off easy. If both talk, both go to jail for 10 years. If both stick to story, both spend a few weeks in jail, but if one squeels they get off easy and the other goes to jail. It is this incentive that lures the criminal to speak, hoping that the other doesn’t Every successful political exchange must solve the prisoners dilemma How do we solve it? Reneging and defection incredibly expensive (you clean the apartment). Ifthere is a punishment to force people to cooperate it solves the problem Create institutions that guarantee agreements are honoredFree-Riders Problem—form of prisoner’s dilemma You don’t contribute to the collective effort but you still get the good out of it.  (Ex. Group project when you do all the work) All are tempted to free ride—they enjoy the benefits with no effort Happens when citizens recognize that their small contribution to the collective effort will not effect the end result (Ex. 2 NPR, you listen to the radio station without paying) Why does anyone EVER contribute? May be rewarding for some people even with minor contribution