The Book The economic naturalist: In search of explanation for everyday enigmas by Robert frank, goes against most common beliefs. He goes against the “system” and the general economic model. It can be put into three base categories or schemes so to speak. These are social norms, moral norms, and the cost benefit principal. The most down to earth of these is social norms.
A social norm is anything that is expected of a social group in any possible situation. An example of this would be when you first meet someone during the day it is socially expected to greet him or her. The problem with this according to Robert Frank is that it basically goes with the flow. It is somewhat of a general habit. Habits are usually something that you have had for a while, and in the social perspective of this means it is not something new to learn. The point of this book is to inform the reader of the other side of the mountain the un-beaten path so to speak. The standard economic model has a set of standard structural guides of sorts. The Model is meant to generalize and simplify the thought process. The problem with this is that it is to general guidelines. The going with the norm doesn’t necessarily help you off according to Frank. I agree greatly with the authors views regarding this topic. Another great point Frank pointed out was morality or moral norms.
Moral norms are what point us to more or less achievable ideas. These norms are in the form of rules, traits and principles to name a couple. The reason people abide by these “rules” is to help restrict what we do so to speak. It provides moral standards and judging parameters on which we base our judgment on. An example of an everyday norm can be seen as a street sign. When you see a red light you automatically know to stop. If you were to run it you are automatically in the wrong. The street signs are there in order to guide us on the right moral path. The bible also has a great guideline on which many people base their life on. This guideline is called “The Ten Commandments”. At a young age everyone is molded into “How” they should act in certain venues. For example in the classroom cell phones should be on silent and every student should be attentive and quiet. This rule has been socially accepted and automatically followed, because we have been told and have learned to do so. I agree with this concept whole heartedly. I obey the law, I go to class, and I pay my bills. The concept of it all is a simple one and one in which you cannot conceivably avoid. If you avoid it you most certainly end up behind bars. Nobody wants to go to jail so in their minds they automatically do the socially acceptable methods. It is not that I agree 100% about certain rules and regulations, but as far as regulations and the acts we do I agree. Frank also touched base on the Cost benefit Principle.
The Cost Benefit Principle or analysis according to Webster online dictionary is “a formal discipline used to help appraise, or assess, the case for a project or proposal, which itself is a process known as project appraisal; and an informal approach to making decisions of any kind”. It basically is a sort of justification to determine investments. According to Frank “The cost-benefit principle: Take no