WEBVTT Kind: captions; language: en-us NOTE Treffsikkerhet: 91% (H?Y) 00:00:03.099 --> 00:00:11.450 hello everybody and welcome to lecture this week's topic is as you will see on the screen economic 00:00:11.450 --> 00:00:18.100 anthropology my name is Keir Martin and I'm a professor of social anthropology here at the University 00:00:18.100 --> 00:00:26.000 of Oslo I'm sorry that we are not able to be in person in the lecture I'm very much looking forward 00:00:26.000 --> 00:00:32.950 to being back in person lecturing next semester and I hope that I will see many of you for real NOTE Treffsikkerhet: 90% (H?Y) 00:00:32.950 --> 00:00:37.200 next year when I do a number of second year courses. I look forward to getting to know some of you 00:00:37.200 --> 00:00:43.800 then in the meantime allow me to proceed and I just start by talking a little bit about how this 00:00:43.800 --> 00:00:50.700 lecture will operate it is supposed to be an introduction to a very big and very broad topic so 00:00:50.700 --> 00:00:55.900 how I'm going to handle this is I'm not going to just simply go through each of the three texts in 00:00:55.900 --> 00:01:02.100 detail you can read the text yourself but rather I'm going to use the texts to draw out some of the 00:01:02.100 --> 00:01:03.250 main themes NOTE Treffsikkerhet: 85% (H?Y) 00:01:03.250 --> 00:01:09.000 and some of the main issues within economic anthropology to give you an overview and that will then 00:01:09.000 --> 00:01:14.100 hopefully help you when you read the text, to actually pull out the bits that are important. One thing 00:01:14.100 --> 00:01:19.200 I think that's important to remember when you start at university is that you're now reading texts that were 00:01:19.200 --> 00:01:25.200 written by academics for other academics rather than reading textbooks. So don't get too worried 00:01:25.200 --> 00:01:31.100 necessarily if you read a 20-page article by some professor from 50 years ago if you don't 00:01:31.100 --> 00:01:33.450 necessarily immediately see the NOTE Treffsikkerhet: 91% (H?Y) 00:01:33.450 --> 00:01:39.800 every single detail of every single argument the most important thing at this point is to know how 00:01:39.800 --> 00:01:44.500 to draw out the things that are important. So what I want to do in this lecture is to talk about some 00:01:44.500 --> 00:01:49.900 of the key issues and important things that are talked about in these texts maybe spend a bit of time 00:01:49.900 --> 00:01:55.700 talking about some of the texts that are referred to in the text on your reading list so you 00:01:55.700 --> 00:02:02.400 understand some of the context when you come to read and so what I'll begin the lecture with is a 00:02:02.400 --> 00:02:03.250 little NOTE Treffsikkerhet: 74% (MEDIUM) 00:02:03.250 --> 00:02:09.000 kind of experiment that you would have to imagine yourself in this is a game that you're going to 00:02:09.000 --> 00:02:17.600 imagine playing and I've normally run this in a real-life in the classroom. We divide the class into 00:02:17.600 --> 00:02:22.900 into pairs to play the game together I tried running it live online once and it didn't work at all 00:02:22.900 --> 00:02:28.700 so I'm just going to talk you through how the game works it's a two player game, and just for the 00:02:28.700 --> 00:02:33.200 purposes of illustration you're going to have to imagine as I talked it through that you're player 1 NOTE Treffsikkerhet: 73% (MEDIUM) 00:02:33.200 --> 00:02:38.899 you're player 2 but that might sound a bit confusing but as I explained it I hope it will make sense. 00:02:38.899 --> 00:02:47.200 so is the game that we're going to pretend to play so let's start. It's called the ultimate game and 00:02:47.200 --> 00:02:50.300 it starts with this you have an experimenter and two players NOTE Treffsikkerhet: 69% (MEDIUM) 00:02:50.300 --> 00:02:55.900 let's begin by imagining you're player 1 and player one you have a hundred pounds or a hundred dollars 00:02:55.900 --> 00:03:01.700 or a hundred euros or thousand kronor or whatever is easier for you to imagine yeah but I'm not going to 00:03:01.700 --> 00:03:07.700 talk about that. You have a hundred pounds first of all the game is this player one has to make an 00:03:07.700 --> 00:03:09.650 offer to player two NOTE Treffsikkerhet: 72% (MEDIUM) 00:03:09.650 --> 00:03:17.300 no discussion no negotiation - just an offer. That offer is any number between one and a hundred so I can 00:03:17.300 --> 00:03:22.100 offer you one pound I can offer you a hundred pounds I can offer you 50 I can offer you 73 you 00:03:22.100 --> 00:03:27.800 get the picture yeah. No discussion and then straight away or after a small period of time with 00:03:27.800 --> 00:03:32.400 no talking player 2 has one choice either accept or reject NOTE Treffsikkerhet: 90% (H?Y) 00:03:32.400 --> 00:03:38.400 so let's imagine yourself in this situation yeah and then two things can happen if player 2 accepts 00:03:38.400 --> 00:03:42.100 the offer player two accepts NOTE Treffsikkerhet: 76% (H?Y) 00:03:42.100 --> 00:03:49.900 gets to keep the money the player one offers him or her so player 1 offers 50 pounds player two gets 00:03:49.900 --> 00:03:59.950 to keep 50 pounds and then Player 1 gets to keep the rest. If player 2 rejects the offer then both 00:03:59.950 --> 00:04:04.700 players lose everything, if I offer you 50 pounds or if I offer you 20 pounds and you said you know what 00:04:04.700 --> 00:04:09.900 that's not enough I want more I'm not taking it then both Player 1 and player 2 lose everything and 00:04:09.900 --> 00:04:11.400 all the money goes back NOTE Treffsikkerhet: 80% (H?Y) 00:04:11.400 --> 00:04:17.899 so the experiment. Now in a classroom of course we plays we're imagining money this experiment has 00:04:17.899 --> 00:04:23.400 been run repeatedly by economists by social psychologists and other people ever since the early 00:04:23.400 --> 00:04:27.900 1960s and when they do the experiment they use real one NOTE Treffsikkerhet: 82% (H?Y) 00:04:27.900 --> 00:04:34.000 now this is an interesting game and some of the findings about it are quite interesting why the 00:04:34.000 --> 00:04:41.650 findings interesting well first let me explain what a certain theories might lead us to expect 00:04:41.650 --> 00:04:50.100 a theory of so-called economic rationalism might predict that player 2 would accept any of them I'll 00:04:50.100 --> 00:04:55.600 talk a bit more about economic rationalism as we go on through the lecture what I mean by this is a 00:04:55.600 --> 00:04:57.200 theory that says we act in NOTE Treffsikkerhet: 90% (H?Y) 00:04:57.200 --> 00:05:03.200 an economically rational manner and what it means to be economically rational is to try and get as 00:05:03.200 --> 00:05:09.100 much money for ourselves as possible so we can buy as much of the stuff that we like as possible it 00:05:09.100 --> 00:05:17.100 is rational to maximise our incomes and to minimise our outcomes to get as much money as we can and 00:05:17.100 --> 00:05:22.150 then to use that money rationally to buy the most of the stuff we want. NOTE Treffsikkerhet: 80% (H?Y) 00:05:22.150 --> 00:05:29.500 Now if this is how we operate economic rationalism if that's what it is might predict that player 2 00:05:29.500 --> 00:05:36.800 would accept anything, if you're player to and I offer you one pound you might think that's really 00:05:36.800 --> 00:05:43.200 not very much but still if I give it up I get nothing I accept it I get 1 pound I might be pissed 00:05:43.200 --> 00:05:50.000 off with you for offering so little but it's economically rational for me to say yes, and indeed we 00:05:50.000 --> 00:05:51.550 might go further NOTE Treffsikkerhet: 85% (H?Y) 00:05:51.550 --> 00:05:58.750 if we are economically irrational this form of economic rationalism as a theory might also predict 00:05:58.750 --> 00:06:07.450 that player one would know that player 2 is rational like he or she is and that therefore Player 1 00:06:07.450 --> 00:06:14.100 will always offer only one pound because he knows that player 2 is economically rational so player two 00:06:14.100 --> 00:06:20.500 Would accept one pound and he can walk away with 99 pounds because that's rational for him take the 00:06:20.500 --> 00:06:22.549 biggest chunk that he can NOTE Treffsikkerhet: 90% (H?Y) 00:06:22.549 --> 00:06:31.100 and yet this experiment that has been wrong on dozens and dozens and dozens of occasions across 00:06:31.100 --> 00:06:38.100 Western Europe and North America since the early 60s finds consistently similar 00:06:38.100 --> 00:06:45.650 responses across Europe and North America and consistent responses are most people in reality offer 00:06:45.650 --> 00:06:51.750 around 40 pounds or $40 and in addition most NOTE Treffsikkerhet: 83% (H?Y) 00:06:51.750 --> 00:06:57.700 people will reject any offer under 30 I offer you 25 and even though you're going to be 25 pound 00:06:57.700 --> 00:07:04.600 better off you say no in most cases so what does this tell us about economics and economic 00:07:04.600 --> 00:07:06.400 motivation? NOTE Treffsikkerhet: 91% (H?Y) 00:07:07.000 --> 00:07:13.600 We can go even further than this this is the results from North America and Western Europe but then 00:07:13.600 --> 00:07:18.850 in recent decades people such as anthropologists and others have started running this experiment 00:07:18.850 --> 00:07:25.200 around the world and the results they find might point to the importance of taking into account 00:07:25.200 --> 00:07:31.500 cultural variation when you think about how people act economically NOTE Treffsikkerhet: 79% (H?Y) 00:07:31.500 --> 00:07:38.700 but as we know that not only do people act in manners that don't exactly fit the theory of economic 00:07:38.700 --> 00:07:44.800 rationality at the time we also know that the way that people make offers and rejections Vary widely 00:07:44.800 --> 00:07:52.350 across cultures so for example in Mongolia the finding is people consistently always player one 00:07:52.350 --> 00:07:59.900 always suggest a 50-50 split and even if the experimenter changes the rules of the game and tells 00:07:59.900 --> 00:08:01.500 player one that player 2 NOTE Treffsikkerhet: 87% (H?Y) 00:08:01.500 --> 00:08:04.850 has to accept 25 or has to accept 20 NOTE Treffsikkerhet: 85% (H?Y) 00:08:04.850 --> 00:08:13.800 player one always still offers 50/50 because it's considered dishonourable to offer less than a pure 00:08:13.800 --> 00:08:21.000 split and to share equally. Other variations we can find for example lamellar people in Indonesia 00:08:21.000 --> 00:08:28.000 will offer on average 58 percent by contrast Gwenda people in Peru offer on average half of 00:08:28.000 --> 00:08:30.500 that 26% NOTE Treffsikkerhet: 81% (H?Y) 00:08:30.500 --> 00:08:38.100 and for example people in Papua New Guinea with the player 2 are as likely to 00:08:38.100 --> 00:08:44.500 reject very high offers as they are to reject very low offers now we understand maybe that 00:08:44.500 --> 00:08:48.900 I'm sure some of you are already beginning to think well why might I reject a very low offer because 00:08:48.900 --> 00:08:53.100 I feel insulted because I feel like the guys being mean to me so I'm just going to say well screw 00:08:53.100 --> 00:08:55.250 you no one's getting the money NOTE Treffsikkerhet: 90% (H?Y) 00:08:55.250 --> 00:09:02.900 that does happen happen in Papua New Guinea but people also reject a higher offer let's say I'm player one and 00:09:02.900 --> 00:09:04.349 you're player 2 NOTE Treffsikkerhet: 88% (H?Y) 00:09:04.349 --> 00:09:09.400 and I offer you 80 you might think to myself my God maybe this guy didn't understand the 00:09:09.400 --> 00:09:14.100 rules of the game properly maybe he's a bit of an idiot but nonetheless I'm going to take the 80 00:09:14.100 --> 00:09:20.600 And run I'm 80 pounds better off what a sap but some people in Papua New Guinea will be 00:09:20.600 --> 00:09:27.400 as likely to reject an offer of 80 as they are to reject an offer of 20 and we'll come back to some 00:09:27.400 --> 00:09:31.450 of the reasons why this might be the case as we go through the lecture NOTE Treffsikkerhet: 89% (H?Y) 00:09:31.450 --> 00:09:39.050 so what conclusions are what kinds of understandings can we begin to draw from this kind of work 00:09:39.050 --> 00:09:45.099 well let me bring it back to the idea of economic rationality that I discussed a few minutes ago NOTE Treffsikkerhet: 82% (H?Y) 00:09:45.099 --> 00:09:51.300 one thing we could argue is that much of mainstream Western economic theory is based upon these 00:09:51.300 --> 00:09:58.900 ideas of Economic rationality and they're based upon assumptions about human nature and the nature of 00:09:58.900 --> 00:10:06.400 exchange. That's based upon the idea that it is natural for us to want to maximize our incomings and 00:10:06.400 --> 00:10:12.000 minimize our outcomes to build up our own individual supply of money or objects or wealth and to 00:10:12.000 --> 00:10:14.400 minimize what we give out NOTE Treffsikkerhet: 86% (H?Y) 00:10:15.800 --> 00:10:24.100 this is therefore an assumption of the naturalness and inevitability and universality perhaps of 00:10:24.100 --> 00:10:29.600 what we might call commodity Exchange in which individuals consistently try to maximise their 00:10:29.600 --> 00:10:35.400 possession of goods through exchange this kind of theory is known by a number of names you can call 00:10:35.400 --> 00:10:41.849 it rational actor Theory or economic utilitarianism or a whole number of other things what it is NOTE Treffsikkerhet: 77% (H?Y) 00:10:41.849 --> 00:10:50.100 a remarkably strong stranding Western political and economic thought and within social sciences and 00:10:50.100 --> 00:10:56.000 the discipline of economics in particular and one thing I want to stress at this point before we go 00:10:56.000 --> 00:11:03.500 further is that much of economic anthropology is a critical dialogue with this thing and when I say 00:11:03.500 --> 00:11:11.800 critical dialogue is not necessarily the economic anthropology is saying but this is wrong NOTE Treffsikkerhet: 88% (H?Y) 00:11:11.800 --> 00:11:17.900 I would argue that there are all sorts of contexts where we do act in this manner NOTE Treffsikkerhet: 85% (H?Y) 00:11:17.900 --> 00:11:21.050 if I need to buy a new laptop NOTE Treffsikkerhet: 86% (H?Y) 00:11:21.050 --> 00:11:29.400 I will shop around for the place where I can get the deal for the best amount of money it's not the 00:11:29.400 --> 00:11:35.700 case that I'm going to think to myself you know what I can get this MacBook Pro for 5,000 Kroner 00:11:35.700 --> 00:11:43.500 cheaper if I order it online then if I go to Elkj?p, but you know what Elkj?p has a corporation 00:11:43.500 --> 00:11:48.300 With such a good friend of mine and I feel such a degree of emotional loyalty to Elkj?p I'm going to 00:11:48.300 --> 00:11:52.349 pay the extra 5,000 Kroner because I feel sorry for Elkj?p NOTE Treffsikkerhet: 91% (H?Y) 00:11:52.349 --> 00:12:00.300 in a context like that most of us would act like the kind of economically rational actor who you 00:12:00.300 --> 00:12:07.900 find in economics textbooks it's not saying this model is wrong the argument is more about beginning 00:12:07.900 --> 00:12:13.700 to reflect upon what are the limits of this form of economic value or this form of economic 00:12:13.700 --> 00:12:20.200 motivation and thinking about how it interplays with other ways in which human beings economically 00:12:20.200 --> 00:12:21.350 transact or NOTE Treffsikkerhet: 68% (MEDIUM) 00:12:21.350 --> 00:12:23.300 Interact with each other NOTE Treffsikkerhet: 83% (H?Y) 00:12:24.100 --> 00:12:30.700 so here is some of the origin of this particular Theory I'll give this quote to illustrate many of you 00:12:30.700 --> 00:12:35.700 I'm sure you've heard of Adam Smith, Adam Smith is probably the most famous figure in the history of 00:12:35.700 --> 00:12:42.500 economic theory one of the most influential theorists in the history of European thought. Writing 00:12:42.500 --> 00:12:48.300 around 250 years ago in Scotland During the period of the Enlightenment is very much the major 00:12:48.300 --> 00:12:52.200 founding figure of modern economics a s a discipline NOTE Treffsikkerhet: 76% (H?Y) 00:12:52.200 --> 00:12:57.600 and here is one of the most famous quotes from Adam Smith on his most famous book The Wealth of 00:12:57.600 --> 00:12:58.900 Nations NOTE Treffsikkerhet: 76% (H?Y) 00:12:58.900 --> 00:13:06.800 on the quote goes as follows "the propensity to truck barter and exchange one thing for another is 00:13:06.800 --> 00:13:15.300 common to all men, and to be found in no other race of animals, he generally indeed neither intends to 00:13:15.300 --> 00:13:22.100 promote the public interest nor knows how much he is promoting it he intends only his own gain and 00:13:22.100 --> 00:13:28.600 he is in this as in many other cases led by an invisible hand to promote an end NOTE Treffsikkerhet: 83% (H?Y) 00:13:28.600 --> 00:13:33.950 which was not part of his intention" what does he mean by this and what can we get from this? NOTE Treffsikkerhet: 82% (H?Y) 00:13:33.950 --> 00:13:40.300 well the first thing is when he talks about the propensity to truck, barter, and exchange he's talking 00:13:40.300 --> 00:13:44.900 about commodity exchange he's talking about the kind of economic rationality we talked about earlier 00:13:44.900 --> 00:13:52.100 where people are out pursuing their material or objective self-interest and no it's common to all 00:13:52.100 --> 00:13:59.700 men is not the some people are like this some of the time this is a universal feature of Being Human NOTE Treffsikkerhet: 90% (H?Y) 00:14:00.100 --> 00:14:08.700 it's fundamental to who we are and indeed is to be found in no other race of animals. Free-market 00:14:08.700 --> 00:14:14.700 exchange, commodity exchange, economic rationality is therefore in Adam Smith vision NOTE Treffsikkerhet: 88% (H?Y) 00:14:14.700 --> 00:14:22.200 one of the fundamental defining characteristics of humanity as a species NOTE Treffsikkerhet: 75% (MEDIUM) 00:14:22.200 --> 00:14:28.700 and it is the best way of organising Society it's a way of organising society that does not need to 00:14:28.700 --> 00:14:35.400 be planned and here is the paradox at the heart of this kind of free market economics the free 00:14:35.400 --> 00:14:41.600 market does not need to be planned by a visible hand by a Central Committee by state organizing 00:14:41.600 --> 00:14:48.500 committee for the establishment of the free market this free market grows out of this propensity in 00:14:48.500 --> 00:14:52.350 human nature if we leave human nature to do its thing NOTE Treffsikkerhet: 87% (H?Y) 00:14:52.350 --> 00:14:59.000 human beings will begin to exchange with each other in this free market basis, and this magically or 00:14:59.000 --> 00:15:04.150 inevitably leads to the best possible outcome. Because everyone ends up getting what they really want 00:15:04.150 --> 00:15:11.100 if we leave individuals to pursue their particular desires on the free market where I've got a 00:15:11.100 --> 00:15:15.900 hundred pounds and I think well I quite like some apples but I want oranges more so I'm going to 00:15:15.900 --> 00:15:21.700 spend a hundred pound of oranges be a lot of oranges but it's an illustration take my point yeah NOTE Treffsikkerhet: 79% (H?Y) 00:15:21.900 --> 00:15:27.800 then the Orange is go to where they're supposed to go to in the price of oranges abducts accordingly 00:15:27.800 --> 00:15:33.700 and everyone ends up getting roughly what they want the most relative to how much money thing in 00:15:33.700 --> 00:15:38.900 other words is the best and most efficient way for Distributing resources around society and it 00:15:38.900 --> 00:15:44.200 leads to therefore to the best ordered Society with everyone getting the most of what they really 00:15:44.200 --> 00:15:45.550 need NOTE Treffsikkerhet: 88% (H?Y) 00:15:45.550 --> 00:15:54.400 so the paradox is if we leave everybody to pursue their own individual selfish self interest and 00:15:54.400 --> 00:16:00.300 step out of the way of them doing that it actually leads to the greatest social good NOTE Treffsikkerhet: 88% (H?Y) 00:16:00.300 --> 00:16:08.200 That's the basis of the deal but again just to recapitulate the point from the previous slide again 00:16:08.200 --> 00:16:15.400 that this is not just simply some abstract kind of part of economic theory but is you know a 00:16:15.400 --> 00:16:21.400 marginal part this is foundational to the theory of what it means to be human that is at the 00:16:21.400 --> 00:16:29.900 heart of this kind of theory it is common to all men and to be found in no other race of animals NOTE Treffsikkerhet: 88% (H?Y) 00:16:30.000 --> 00:16:38.150 now again my point is not that this model is 100% wrong but we know NOTE Treffsikkerhet: 90% (H?Y) 00:16:38.150 --> 00:16:45.500 if we stop and reflect there are problems or limits to the model and the data from the ultimatum 00:16:45.500 --> 00:16:51.300 game might begin to be an illustration of it. When I play the game in class there will always be 00:16:51.300 --> 00:16:57.000 some player two says no and player two says no is a player two who got offered 20 pounds or 15 00:16:57.000 --> 00:16:58.849 pounds and I asked them NOTE Treffsikkerhet: 84% (H?Y) 00:16:58.849 --> 00:17:03.500 why would you say no to 15 pounds or 20 pounds is like I felt pissed off I thought they were 00:17:03.500 --> 00:17:08.500 insulting me I felt they were being mean I felt they were being unfair I thought if you're going to be 00:17:08.500 --> 00:17:14.500 that stingy you shouldn't have any money either you should be taught a lesson all of these things in 00:17:14.500 --> 00:17:20.900 other words people are motivated by other kinds of values alongside economic rationality economic 00:17:20.900 --> 00:17:27.700 rationality is one particular that that might motivate people in economic exchanges but it always 00:17:27.700 --> 00:17:29.100 goes alongside other NOTE Treffsikkerhet: 85% (H?Y) 00:17:29.100 --> 00:17:35.000 Accounts and motivations and we notice that in all sorts of exchanges what are Market 00:17:35.000 --> 00:17:41.000 transactions they were exchanges I go to Elkj?p I give our shop 15,000 kroner they give me a laptop 00:17:41.000 --> 00:17:46.500 or whatever it might be I go to the shop and I give them 20 kronor give me a bunch of oranges 00:17:46.500 --> 00:17:50.800 And it's an exchange and that exchange looks like commodity Exchange NOTE Treffsikkerhet: 85% (H?Y) 00:17:50.800 --> 00:17:56.500 it looks like it fits the model but we know sorts of exchanges of goods and services that don't 00:17:56.500 --> 00:18:03.600 neatly fit this model. Exchanging christmas cards it's not the case that we sit around 00:18:03.600 --> 00:18:08.200 changing Christmas cards at least I hope it isn't going I'm going to see if I can give out the 00:18:08.200 --> 00:18:14.700 minimum number of Christmas cards and get the maximum number back as I want to maximize my income in 00:18:14.700 --> 00:18:20.800 the number of Christmas cards and minimize my outgoings because I am economically rational actor NOTE Treffsikkerhet: 79% (H?Y) 00:18:20.800 --> 00:18:26.800 Christmas cards are my form of wealth. Christmas cards don't work like that we circulate Christmas cards 00:18:26.800 --> 00:18:31.000 to tell people we still care about them even if we don't seem very much or because we're 00:18:31.000 --> 00:18:37.000 trying to build influence at work or whatever it might be but we circulate Christmas cards as part 00:18:37.000 --> 00:18:45.800 of building social relationships. Likewise buying a round of drinks which in Britain is an example 00:18:45.800 --> 00:18:50.950 I wouldn't need to spend any time on but as I'm talking to Scandinavia I probably need to NOTE Treffsikkerhet: 76% (H?Y) 00:18:50.950 --> 00:18:56.800 explain how it works I suspect you will understand vaguely the British or Irish Concept of buying 00:18:56.800 --> 00:19:02.900 A round the drinks but it's one that I've discovered is not as culturally normal here as it is in 00:19:02.900 --> 00:19:09.600 Britain. All right but basically when you join a new workplace when you meet a new group of people 00:19:09.600 --> 00:19:15.400 you go out to the pub together and you know I'll go to the bar first and I'll buy a round of drinks 00:19:15.400 --> 00:19:20.100 for all five or six people there, and then you know the next person will buy a round for me for the 00:19:20.100 --> 00:19:20.850 rest of us NOTE Treffsikkerhet: 78% (H?Y) 00:19:20.850 --> 00:19:26.100 and what we're doing there is we're building a social bond between us the exchange is about 00:19:26.100 --> 00:19:31.200 building the relationship now I used to live in Denmark in Aarhus before I moved to Norway I 00:19:31.200 --> 00:19:37.900 remember the first time I went out with people from the Department and all of us to a bar with a very 00:19:37.900 --> 00:19:44.600 imaginative name of 'puben' and I thought okay I'll get to know people I bought a round of drinks 00:19:44.600 --> 00:19:49.200 and I saw everyone sort of looking each other like whoa what's going on here and then I sat back and waited 00:19:49.200 --> 00:19:50.850 for the Danes to buy me NOTE Treffsikkerhet: 91% (H?Y) 00:19:50.850 --> 00:19:56.000 the second round or to start the process going and then after everyone finished their drinks they 00:19:56.000 --> 00:20:01.500 all went up to the bar and carried on buying their drinks individually as before as often happens 00:20:01.500 --> 00:20:07.100 here in Norway so what does this tell us what it tells us for example that there are strong cultural 00:20:07.100 --> 00:20:14.600 differences in how we think about doing exchange of an economic nature even within Western Europe 00:20:14.600 --> 00:20:20.949 took me to places that are fairly similar in many regards like Scandinavia and NOTE Treffsikkerhet: 71% (MEDIUM) 00:20:20.949 --> 00:20:26.600 United Kingdom there's still an important difference there but think of it in the British context think 00:20:26.600 --> 00:20:34.300 for example if I viewed buying rounds of drinks in an economically rational man NOTE Treffsikkerhet: 83% (H?Y) 00:20:34.300 --> 00:20:40.500 according to the textbooks. Think for example if I went out of the group of people six people I'm new 00:20:40.500 --> 00:20:46.200 at work and I sit there very quietly in the corner of the group and I wait for all the other five 00:20:46.200 --> 00:20:52.600 people to buy a round of drinks and then I run away before it's my turn economically I could go 00:20:52.600 --> 00:21:00.400 fantastic I've won the economic competition of the round of drinks I got five drinks in and I didn't 00:21:00.400 --> 00:21:05.199 buy any. I maximize my income is and I minimize my outgoings NOTE Treffsikkerhet: 89% (H?Y) 00:21:05.199 --> 00:21:10.200 but that of course will be to completely miss the point and it was to be lose in the game of the 00:21:10.200 --> 00:21:14.900 real purpose of the round of drinks which is to demonstrate that I'm a decent guy and to begin to 00:21:14.900 --> 00:21:21.050 build social relationships with a potential new group of friends or colleagues so the rationality 00:21:21.050 --> 00:21:28.500 the value of the exchange even though it has an economic component we go to the barn we pay the pub 00:21:28.500 --> 00:21:35.000 for the drinks there's another economical cultural value going on alongside at the same time NOTE Treffsikkerhet: 78% (H?Y) 00:21:35.000 --> 00:21:39.800 likewise if I make a cup of tea for my partner when I finish recording this lecture if I go and say 00:21:39.800 --> 00:21:45.350 You want a cup of tea love and she says oh that's lovely if I go and boil the kettle make the cup of tea 00:21:45.350 --> 00:21:50.800 why am I doing it because it's part of the ongoing small day-to-day exchange of friendship and 00:21:50.800 --> 00:21:55.400 favors and the rest of it the helps build our relationship and build our household and build our 00:21:55.400 --> 00:22:01.400 family if I go up with a cup of tea and I then say you know what I'm a full professor with a good pay 00:22:01.400 --> 00:22:04.699 grade and my time is worth a lot of money so you just bought NOTE Treffsikkerhet: 85% (H?Y) 00:22:04.699 --> 00:22:09.050 that kettle I think that's one of a hundred kroner plus the cost of the tea bag and the electricity 00:22:09.050 --> 00:22:14.400 could just fix me a hundred twenty kroner later and we'll call it quits and kind of missing the 00:22:14.400 --> 00:22:19.200 point of what that making a giving her a cup of tea in the expectation she might make me coffee 00:22:19.200 --> 00:22:26.949 later and it's all part of us having a friendly and civil relationship so we understand though NOTE Treffsikkerhet: 91% (H?Y) 00:22:26.949 --> 00:22:33.200 that although the model of economic rationality is not wrong there are often all sorts of other 00:22:33.200 --> 00:22:39.550 motivations that are going on alongside or instead of that motivation motivation such as friendship 00:22:39.550 --> 00:22:46.400 love, obligation, honor, competitiveness maybe I want to out-compete maybe I want to give you more than 00:22:46.400 --> 00:22:52.150 you give me so I win the competition of giving so there are all sorts of other motivations going on 00:22:52.150 --> 00:22:56.300 so that's what I want to leave you with at the end of this first section and in the Second Step you 00:22:56.300 --> 00:22:57.300 will begin to look NOTE Treffsikkerhet: 81% (H?Y) 00:22:57.300 --> 00:23:04.700 little more detail some of the anthropological literature that talks about through observation of 00:23:04.700 --> 00:23:10.900 particular context that talks about the different kinds of motivations that people have to engage in 00:23:10.900 --> 00:23:16.200 economic activity other than the model of economic rationality.