Discussion:
Models of Man: Homo ordinis (and some generalities on utility)
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f***@beethoven.com
2005-05-29 15:39:40 UTC
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Classical theory states that we act as maximiazing machines acting
through and by a utility function with certain characteristics. From
this basic setup several conclusions are reached, one of them most
important being that of specialization as a way to maximize production.
Men are assumed to *naturally*, that is, through the workings of the
economic system, to achieve a level of specialization that drives
production to the maximum, even to the level of sholw countries! (Smith
& Ricardo)

But, this is a very ideal setup, indeed. How can we make it work in the
presence of generalists? To make it work as specified, the underlying
homo *must* be very ordered! In other words, the principle of
specialization to maximize production implies a national character,
namely, that of the Nation which gave birth to this theory. For other
people itr may not work at all, simply because they won't achieve that
level of specialization.

In terms of utility functions, it is a statement on the size of the
categories of indifference! Ordered people would have very narrow
levels of utility...
Danilo J. BOnsignore then Fabrizio J BOnsignore again Danilo J.
Bonsignore
Fabrizio J Bonsignore
2005-05-29 16:02:37 UTC
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Post by f***@beethoven.com
Classical theory states that we act as maximiazing machines acting
through and by a utility function with certain characteristics. From
this basic setup several conclusions are reached, one of them most
important being that of specialization as a way to maximize production.
Men are assumed to *naturally*, that is, through the workings of the
economic system, to achieve a level of specialization that drives
production to the maximum, even to the level of sholw countries! (Smith
& Ricardo)
But, this is a very ideal setup, indeed. How can we make it work in the
presence of generalists? To make it work as specified, the underlying
homo *must* be very ordered! In other words, the principle of
specialization to maximize production implies a national character,
namely, that of the Nation which gave birth to this theory. For other
people itr may not work at all, simply because they won't achieve that
level of specialization.
In terms of utility functions, it is a statement on the size of the
categories of indifference! Ordered people would have very narrow
levels of utility...
Danilo J. BOnsignore then Fabrizio J BOnsignore again Danilo J.
Bonsignore
"Narrow" utility functions means that for any given level of utility,
few goods would fall into that indifference category, and the lower the
utility level the wider will be that category, that is, the more goods
will be considered indifferent at that level. In the case of countries,
this will be true for countries whose comparative endowement lets them
be efficient in single or few products, while countries with lots of
endowements will have wider indifference categories.

Danilo J. Bonsignore then Fabrizio J. Bonsignore again Danilo J.
BOnsignore
(to their disappointment, I can perfectly well get a female couple
without recurring to violence... or deceit.)

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