TAILIEUCHUNG - Microeconomics for MBAs 15

Microeconomics for MBAs 15. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 5 The Logic of Group Behavior In Business and Elsewhere 9 nonmembers and which would through for example the wearing of uniforms distinguish members from nonmembers 4 collective sharing of all property and all communal work 5 submission to public confession and criticism and 6 expressed commitment to an identifiable power structure and tradition. Needless to say the cost implied in these commitment mechanisms would tend to discourage many free riders from joining the society. By identifying the boundaries to societies these mechanisms made exclusion possible. As Kanter points out the importance of these commitment mechanisms is illustrated by the fact that their breakdown foreshadowed the end of the community. Other means of bringing about collective behavior on the part of group members are suggested by the cattlemen s associations formed during the nineteenth century. During the nineteenth century cattle were allowed to run free over the ranges of the West. The cattlemen had a common interest in ensuring that the ranges were not overstocked and overgrazed and in securing cooperation in rounding up the cattle. To provide for these common interests cattlemen formed associations which sent out patrols to keep out intruders and which were responsible for the roundups. Any cattleman who failed to contribute his share toward these ends could be excluded from the association which generally meant that his cattle were excluded from the roundup or were confiscated by the association if they were rounded The family is a small group which by its very nature is designed to promote the common interest of its members. That common interest may be something called a happy family life which is admittedly difficult to define. The family does not escape difficulties. At present its validity as a viable institution is being challenged by many sources however it does have several redeeming features that we think will cause it to endure imperfect though it may be as a .

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• Society and Business
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