POLYS 103 September 8 Lecture 8Outline of Last Lecture I. Physcology and ZombiesII. Prospect theoryIII. SummaryOutline of Current Lecture II. Marketsa. what are theyb. different typesc. how we measure povertyCurrent Lecture1. Markets1. A crucial and fundamental part of capitalism 2. Arguably the basis of liberal economies3. the free exchange of goods and services4. between buyers and sellers5. part of history-where writing was developed6. What is a market?1. Decision making atonomy2. voluntary participation in exchange 3. There are always rules. Even free markets aren't totally free4. no one controls the marketThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.7. Free market- means you are free to participate or not8. Markets spring up everywhere (natural markets)9. Markets are always changing10. future markets can create risk11. buying and selling risk- insurance12. role of info in marketsif buyers and sellers know/ believe different things then the unequal information leads to an unequal exchange- called: Asymmetric13. Bottom up markets1. money, inspecting goods14. Top down markets1. insider trading15. Getting information is actually more important than actual economic change16. market friction comes from uneven information17. the government can step in or markets can fix themselves2. Poverty1. We measure poverty as 1. number of people under an amount/day2. inequality- distribution of wealth 2. Inequality can be argued to be pointless. Real issue is how many people in poverty and whether (over time) they get out3. low inequality- growth helps lots of people4. high inequality- growth may only help rich 5. Markets are different from state to state6. Soverieighnty says that states get to choose how they want their marketsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.7. but because of globalization, differences are something people have to confront almost daily 8. International market is free- states can choose to participate or notnot free in the sense of rules and regulationsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
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