micromotives and macrobevhavior, Sheiling
... his own interest behalf, when at the same time his action doesn’t benefit societal “bank”. That behavior could decrease future potentials for societal development if left ungoverned. Shelling introduces coordination as an important aspect of well functioning society. Author considers two kinds of coordination: social contract and government intervention. One meaning is seen in situations like choosing whether to drive on the left or the right lanes. The drivers must coordinate to each other's behavior, so accidents will be avoided. Many times we have been challenged by those situations where you want to behave just like everyone else or not behaving just like everyone else. Invisible coordinating laws influence our decisions and behavior in those situations. For example at the funeral everyone is trying to wear dark colors rather then bright and flashy. Government is taking part in coordinating our behavior by establishing rules and regulations. For example you are not allowed to drive above speed limit otherwise a state trooper may pull you over. Schelling believes that segregation results from different micromotives that people may have because of different ethnicities, skin color or religion. He observed the phenomenon of diversity between people those qualities that choose to live in the same neighborhoods. That supports the idea of social contract where people of the same background have the same micromotives that help to interact with each other in harmony. He believes that racism is not the main factor of segregation in the neighborhoods. Based on “micromotives” theory broad diversity of viewpoints among individuals leads them to ling and interact more often with those who hold similar opinions. Black people are likely to buy or rent an apartment in a similar ethnic neighborhood because they will be able to fit in with that environment better. According to A. Smith people tend to pursue their own interest at the same time they maximize utility for the society. That theory contradicts with what Schelling is trying to say in his paper “Micromotives and Macrobehavior”. Both theories start the same but the outcomes are different. According to Smith society is intentionally benefited from one’s following his self interest. Schelling states that it is possible that the outcome of such selfish activities could be negative and even harmful for society. In his paper he gives a variety of examples to support his point of view. It seems to me that both of those authors are right in their views, Schelling just develops the “invisible hand” th...