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Reading questions week 2

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Reading questions on articles discussed in week 2 of Introduction to Economics & Business Economics

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A. Knowledge and Comprehension
1. What are the core components of SES (socio-ecological systems)? Why do they require
complexity?
Social-ecological systems are complex systems in which people and nature are inextricably linked and
in which both the social and ecological components exert strong influence over outcomes.
The core components of SES are Resource systems, resource units, users & government systems, with
each of the components made up of several ‘second-level’ variables, again set up out of other
variables. That makes it complex; the ‘first-level’ components; the core ones, are built up out of
multiple other components that are influenced by a lot of factors. It is also possible to use different
theories or empirical research.
In a complex SES, subsystems are separable but interact to produce outcomes at the SES level and
there is a ‘feedback-loop’. Also, there are different frameworks, theories and models used in different
situations to analyze only a part of the complex whole.
2. What is the ‘tragedy of the commons’, which Ostrom (2009) associates with the researcher
Garrett Hardin? Look up the relevant academic reference.
The tragedy of commons means that a public good, which can be used by anyone, is used to much
that it decreases in value, so where firstly everyone could profit from the good, now everyone is
affected by the decline in worth of the good. The good is non-rivalry and non-excludablde.
3. Which sub-system variables are associated with self-organization? How do these protect the
commons?
Self-organization: users of resources have invested in costly governance systems to increase the
likelihood of sustaining them. This will exist when (expected) benefits of the managing out rule the
costs of investing in better rules and norms.
The government systems and users, because the government can regulate the use of a common (for
example through laws/rules) and the users are the ones that get affected by the decrease of worth of
the good. They can protect the commons by setting norms and values; standards for the society.
Self-organization depends on:
Resource systems; size of resource system, productivity of system and predictability of system
dynamics
Governance systems; collective-choice rules
Resource unit; its mobility
Users; number of users, leadership/entrepreneurship, knowledge of SES/mental models and
importance of the resource
4. Does the SES framework relate to multidisciplinary research and pluralism? Explain.
Yes it does, the framework looks at policies as well as human behavior (sociology). Next to that, the
framework takes into account some biology to look at how the natural systems work and need to be
protected.
5. What is ‘market triumphalism’? Relate this idea to concepts discussed in Weeks 2 and 4.
Everything is regulated through the market mechanism. This would lead to ‘prosperity and freedom’.
The market triumphalism is in line with the workings of capitalism.
6. What is the common synonym for ‘market value’?

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