Lecture Details :
Capitalism: Success, Crisis and Reform (PLSC 270)
Professor Rae introduces Adam Smith's notion of the "invisible hand" of the market. Several preconditions must be met for the invisible hand to work. Markets must be open, and there cannot be just one buyer or one seller who can control product prices. No producer can hold a pivotal private technology, and there must be more or less truthful information across the whole market. Governments must enforce property and contracts. However, many of these preconditions are at odds with the Porter Forces, which represent general rules of thumb, or principles, for a firm trying to make above average profits. These principles include avoiding direct competition, establishing high barriers to entry, and avoiding powerful buyers and powerful suppliers. Professor Rae suggests that submission to Adam Smith's invisible hand may be contrary to basics of corporate strategy. Corporations can leverage powerful political influence to affect the movements of the "invisible hand." Guest speaker Jim Alexander, formerly of Enron, discusses problems of very imperfect information, as well as the principal-agent problem. Professor Rae also discusses Adam Smith's complicated ideas about self-interest and morality.
Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses
This course was recorded in Fall 2009.
Course Description :
In this course, we will seek to interpret capitalism using ideas from biological evolution: Firms pursuing varied strategies and facing extinction when those strategies fail are analogous to organisms struggling for survival in nature. For this reason, it is less concerned with ultimate judgment of capitalism than with the ways it can be shaped to fit our more specific objectives -- for the natural environment, public health, alleviation of poverty, and development of human potential in every child. Each book we read will be explicitly or implicitly an argument about good and bad consequences of capitalism.
Other Resources :
Other Social Sciences Courses
- Economic Geography of the Industrial World,Fall 2011 by UC Berkeley
- Foundations of Modern Social Theory by Yale
- Introduction to the Old Testament by Yale
- Introduction to Political Philosophy by Yale
- The Early Middle Ages, 284--1000 by Yale
- Introduction to Film Studies by IIT Madras
- The Moral Foundations of Politics by Yale
- ENVR 102 - Selected Topics in Environmental Studies by UC San Diego
- Population and Society by IIT Kanpur
- Political Science 30: Politics and Strategy by UCLA
» check out the complete list of Social Sciences lectures
Social Sciences Lecture Notes