Regensburg 2007 – scientific programme

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AKSOE: Arbeitskreis Physik sozio-ökonomischer Systeme

AKSOE 15: Dynamics of Groups and Organizations IV

AKSOE 15.2: Talk

Thursday, March 29, 2007, 18:15–18:45, H8

About Unified Mathematical Approach for Different Ideologies — •Yuri Yegorov — Institute for Advanced Studies, Vienna, Austria

In order to build a formal link between neoclassical economics and alternative social structures and ideologies (nationalism, Marxism), it makes sense to extend individualistic utility function by capturing some altruism. Individual utility in a nationalist society can be modelled is a weighted sum of own utility plus the sum of utilities of all members of the nation. In Marxist society, there is also care about common interest, but instead of average, this should be the utility of its poorest member. These utilities allow for non-linear interaction between members of the society. The distribution of wealth matters for both nationalist and Marxist societies, while it does not matter for liberal society. Altruism can bring more stability to the concept of social equilibrium and lead to more robust structures, and it also can explain possible mechanism of emergence of social group. It is possible to show that the prisoner*s dilemma has a good equilibrium when everybody cares also about utility of a partner. If the level of altruism depends on social distance between people, we get the emergence of cooperative zones where the motivation for purely egoistic behaviour disappears. This can explain such historical phenomena as the emergence of ethnic groups, communities and nations.