Cross-posted at Montclair SocioBlog.

I don’t know much about game theory.  I’ve always found it hard to squeeze real-life situations into the shape of a prisoner’s-dilemma matrix and to think of life as a game.  A game show, on the other hand, is a game.  And the final round of the British show “Golden Balls” is totally Prisoner’s Dilemma.  (Shouldn’t that apostrophe be moved to make it be Prisoners’ Dilemma? After all, it’s not solitaire.)

You can get the idea of the set-up in the first two minutes of this clip.*  But don’t stop there.  Watch the full six minutes, and appreciate the ingenuity of the strategy played by Nick (he’s the guy in the brown shirt on the right of the screen).

SPOILER SPACE, which I’ll fill with the “Golden Balls” matrix.

In many prisoner’s dilemma scenarios, the prisoners are separated and can’t discuss their options.  In “Golden Balls,” they can talk things over, the only catch being that each player is well aware that the other might be lying.  Earlier rounds of the game are designed to encourage lying.

Nick is ingenious in two ways.  First, he brings in an option that “Golden Balls” does not include but cannot exclude: the offer to split the loot 50-50 after the show even if the show gives the entire amount to him.

Second (and here is where my lame game-theory knowledge is showing), by convincingly maintaining that he is going to Steal, he destroys the Nash equilibrium that “Golden Balls” tries to create.  He forces Ibraham to choose Split, for Ibraham’s position now becomes this:

  • If Nick is fully telling the truth about sharing: Split, I get £6500. Steal, I  get 0.
  • If Nick is lying about sharing: Split, I get 0.  Steal, I get 0.
  • So my only hope of getting anything is Split.

Which is what he does.

Nick’s ploy also creates an interesting dramatic switcheroo for the viewers as well.  As we watch the clip, it looks as though all the pressure is on Ibraham.  We can see him debating with himself and with Nick.  But after the two men show their balls, we realize that in reality, it’s Nick who had to be sweating, not about which choice he will make – he has already decided that – but about whether he is actually fooling  Ibraham.  He was betting £13,000 on his own acting ability.  That takes balls.

One other observation: I used to watch “Survivor,” and when players would lie and succeed, I might have admired them for being the clever strategist, but I didn’t like them.  In fact, I often actively disliked them.  But here, when I found that Nick had lied successfully, I was hoping that Ibraham or “Golden Balls” would give him a few extra pounds as a bonus.

* The clip is from February.  I found it thanks to  Planet Money, which posted it last week without comment.

Cross-posted at Montclair SocioBlog.

In case you wondered about what we in the U.S. pay for health care compared with those unfree unfortunates who suffer under various forms of socialized medicine, here are some graphs from 2009 showing the advantages of what is sometimes called “the best health care system in the world.”

The graphs are from the International Federation of Health Plans. I’ve selected only four — to show the relative costs* of

  • an office visit
  • a day in the hospital
  • a common procedure (childbirth without complications)
  • a widely used drug (Lipitor)

You can download all the charts here, but be warned: it gets boring. We’re number one in every chart, at least in this one category of how much we shell out.

Since we have the best health care in the world, this must mean that you get what you pay for. Our Lipitor must be four to ten times as good as the Lipitor that Canadians take.

Hat tip: Ezra Klein.

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*These amounts are what providers are paid by governments or other insurers, not what the patient pays, which in many Eurpean countries is essentially nothing. See the footnotes for the tables in the original document. Or look at the comments on this at Boing Boing, a discussion which is remarkably civil (do they monitor comments?).

Cross-posted at Montclair SocioBlog.

This graph tracks the share of income going to the top 1% in seven countries.  It’s from a paper by two Swedish economists, Jesper Roine and Daniel Waldenström (pdf).”’

The trend was towards greater equality up to 1980 — the share of the 1% was shrinking.    Since then, the 1% have increased their share of the income pie in all seven countries.  But the graph seems to show important differences, especially in recent decades.  Here is a  cropped version of the graph showing the 1980-2004 years.  I have added straight lines connecting those two points for Sweden and for the U.S.
Both changes are increases, but are they the same or are they different?  The answer is crucial.  The U.S. and Sweden have different economic policies.  If the changes are no different between countries, then inequality is just one of those inevitable things that’s happening no matter what governments do.  But if the growth of inequality in the US is much greater than in Sweden, maybe government policy can in fact mitigate the trend towards inequality.
The Swedish 1% share went from a little under 5% to about 7.5%.  In the U.S., the 1% share increased from about 7% to 16%.* You might see those increases as very similar.
In fact, Allan Meltzer in the Wall Street Journal takes precisely that view.  He stretches out the graph to de-emphasize the vertical differences, and adds a title implying that all countries are “together” in this shift of income to the top 1%.
He adds this explanation:
As the . . . chart . . . shows, the share of income for the top 1% in these seven countries generally follows the same trend line. That means domestic policy can’t be the principal reason for the current spread between high earners and others. Since the 1980s, that spread has increased in nearly all seven countries. The U.S. and Sweden, countries with very different systems of redistribution, along with the U.K. and Canada show the largest increase in the share of income for the top 1%. [emphasis added]
If your pay went from $5 an hour to $7.50 an hour while your co-worker’s went from $7 to $16, you might think that your co-worker had gotten a substantially heftier raise.  But if so, that’s because you’re not the Wall Street Journal.
Meltzer’s main point in the article is that we should not raise taxes on the very wealthy.  However, as Bruce Barlett points out (here), if the rich are getting just as rich in high-tax countries like Sweden and the Netherlands as they are in low-tax countries like the U.S., we may as well raise taxes on them. They’ll be doing just as well, like their Swedish and Dutch counterparts, and the nation will have more revenue to put towards Medicare, education, deficit-reduction, etc.But Meltzer is wrong.  Sweden and the Netherlands are very different from the U.S.  As the graph shows, the income share of the 1% in the U.S. is twice that of the 1% in Sweden and 3 times that of the 1% in the Netherlands.  And it has risen more rapidly.  Yet Meltzer claims that inequality trends are similar everywhere.

So who are you going to believe – the Wall Street Journal or your lying eyes?

Cross-posted at Montclair SocioBlog.

Being in the dominant majority allows you that comfort of not thinking.  People in that majority can assume that everyone shares their views, ideas, and even characteristics, and much of the time, they’ll be right.  “Flesh colored” in the U.S., sometimes even today, means the color of white people’s flesh.

White is the default race, the American race.  It’s easy to ignore that African Americans might not see those Band-Aids as flesh colored.  Similarly, Christianity is the default religion, and those who are in the majority can make those same flesh-colored assumptions.  Justice Scalia, for example, seemed unable to understand that the Jewish families of Jews killed in war might not feel “honored” by a cross placed on the grave of their son or daughter. (My post on this is here.)

The latest example:  this Hannukah card sent in South Carolina, presumably to Jews, by Rick Santorum’s local team.  First tweeted by political reporter Hunter Walker, it’s rapidly making the rounds of the Internet.

The Santorum team knew that Jews celebrate Hannukah.  But apparently they either did not know or did not remember that the New Testament is not part of Judaism and that Jews do not believe in the divinity of Jesus.  So those words from John — that those who follow Jesus “will have the light of life” — probably did not convey the intended effect of holiday warmth.

Cross-posted at Montclair SocioBlog.

It can take a while to find the right word.  But a mot juste may be crucial for framing a political issue. If you like the idea of men being able to marry men, and women women, what should you call the new laws that would allow that?

The trouble with “gay marriage” and even “same-sex marriage” is that these terms suggest – especially to conservatives – some kind of special treatment for the minority.  It’s as though gays are getting a marriage law just for them.

At last, the gay marriage forces seem to have come up with a term that invokes not special treatment but a widely-held American value that’s for everyone – equality.  A bill in  New Jersey has been in the news this week, mostly because Gov. Christie says he will veto it.  The bill is a “marriage equality” law.

The governor is in a bit of a squeeze.  As a Republican with ambitions beyond New Jersey’s borders, he can’t very well be for gay marriage.  But if his opponents can frame the matter their way, he now has to come out against equality.  Which is why the governor continues to refer to the issue as “same-sex marriage.”*

It’s like “abortion rights” or even “women’s rights.” A phrase like that might rally women to your cause, but if you want broader support, you need a flag that every American can salute.  I’m not familiar with the history of abortion rights so I don’t know how it happened, but those who want to keep abortion legal have managed to frame the issue as one of freedom to choose.   They have been so successful that the media routinely refer to their side as “pro-choice.”   To oppose them is to oppose both freedom and individual choice, principles which occupy a high place in the pantheon of American values.

It’s not clear that the “marriage equality” movement has been similarly successful, at least not yet.  I did a quick Lexis-Nexis search sampling the last week of the months January and July going back to 2007.  I looked for three terms: “same-sex marriage,” “gay marriage,” and “marriage equality.”

The general trend for all three is upwards as more legislatures consider bills, with big jumps when a vote becomes big news – that blip in July 2011 is the New York State vote.  But the graph can’t quite show how “marriage equality” has risen from obscurity.  That first data point, July 2007, is a 4.  Four mentions of “marriage equality” while the other terms had 25 and 50 times that many.  As of last week, “gay” and “same sex” still outnumber “equality,” but the score is not nearly so lopsided.

Here is a graph of the ratio of “equality” to each of the other two terms.  From nearly 1 : 20 (one “marriage equality” for every 20 “gay marriages”) the ratio has increased to 1 : 3 and even higher when the discussion gets active.

If the movement is successful, that upward trend should continue.  When you hear Fox News referring to “marriage equality laws,” you’ll know it’s game over.

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* Christie is usually politically adept, but he’s stumbling on this one.  He referred to a gay legislator as “numb nuts” (literally, that might not necessarily be a liability for a politician caught in a squeeze).   Christie also said that he’s vetoing the bill so that the matter can be put on the ballot as a referendum – you know, like what should have happened with civil rights in the South.  

I think people would have been happy to have a referendum on civil rights rather than fighting and dying in the streets in the South.

Several critics, including Numb Nuts, responded that, yes, Southern whites would have been happy to have civil rights left up to the majority.  African Americans not so much.  (If you’re looking for an illustration of Tocqueville’s “tyranny of the majority,” the post-Reconstruction South might be a good place to start.)  The analogy is obvious – race : 1962 :: sexual orientation : 2012 – even if it was not the message the governor intended.

Cross-posted at Montclair SocioBlog.

What we don’t talk about when we don’t talk about class.  That was the title I wanted to use, but it was too long, and besides, there are already too many of these Raymond Carver variants.

Class seems to have disappeared from public discourse, except for the Republicans’ insistence that to mention inequality at all is to engage in “class warfare.” The only class we hear about, whether from politicians or the media, is the middle class.  Here, for example, are the results of  a Lexis-Nexis search of news transcripts in the previous month.

On TV news, the upper and lower class do not exist.

So how do we talk about those at the top and bottom of society?  The discussion of inequality is now all about income.   While “lower class” and “upper class” had only three and four mentions, respectively, in this same period, income terms (high, upper, low, lower) numbered over 300.

For some historical perspective, I looked at Google Ngrams for the frequency of class terms in books.

The pattern for upper class is similar — a large decline in class talk, a much smaller decrease in income talk — though class references still outnumber income references.

From the media, you get the impression that except for a handful of people at the top and the bottom, there really is only one class in America — the middle class — and that the working class has faded into history.  Yet the GSS subjective social class item (“Which class would you say you belong in?”) gets the same results as it did in 1972: a roughly equal split between “middle” and “working” that accounts for 9 out of 10 Americans.

Cross-posted at Montclair SocioBlog.

Mitt Romney’s capitalism has come under attack – from fellow Republicans, of all people.  They’re pummeling him for his work at Bain Capital, his private equity firm.  “Private equity” became the term of choice when “leveraged buyout” acquired a connotation of nastiness, probably because many LBOs were in fact nasty affairs (“hostile” takeovers).

Romney is tall and good-looking with a full head of hair.  He speaks with no noticeable regional accent.  Danny DeVito is a photo negative of all that.  But as Lawrence Garfield,* a.k.a. Larry the Liquidator in “Other People’s Money” DeVito does a much better job in making the case for what Mitt did at Bain Capital.**  (The original title for this post was “Defending Private Equity – the Short Version.”)

Bain sometimes made money by bankrupting the companies it took over.  That’s creative destruction for you – first the destruction, then creation.    As Larry the Liquidator puts it***:

 You invested in a business and this business is dead. Let’s have the intelligence, let’s have the decency to sign the death certificate, collect the insurance, and invest in something with a future. . .
Take the money. Invest it somewhere else. Maybe, maybe you’ll get lucky and it’ll be used productively. And if it is, you’ll create new jobs and provide a service for the economy and, God forbid, even make a few bucks for yourselves.

Romney’s critics talk about the people put out of work, the towns and communities eviscerated.  That’s where Garfield/Romney are on shakier ground.

“Ah, but we can’t,” goes the prayer. “We can’t because we have responsibility, a responsibility to our employees, to our community. What will happen to them?” I got two words for that – “Who cares?”

Larry the Liquidator is raising the issue of shareholders vs. stakeholders.  Stakeholders are all those people who are affected by a corporation.  To attract corporations, local governments sometimes offer goodies like tax breaks, regulation breaks, and even bagfuls of cash.  The localities defend these deals by saying that they will be good for the whole town, particularly for those who become employees or who sell goods and services to the corporation.  These people and the town generally will be stakeholders.  They all have a stake in the success of the corporation.

Corporations too often talk the stakeholder talk.  But when times get tough, they talk the shareholder talk – the talk that Larry does so well. And they walk the shareholder walk.  They walk out of town with the money from the sale of the company’s assets.

All this has implications for issues of trust, implications much too broad and deep for a simple blog post.  See this 1988 article by Andrei Schleifer and Larry Summers, “Breach of Trust in Hostile Takeovers.”

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* Romney is a Mormon.  Larry Garfield is of no specified religion, though we can assume he is not a Mormon.  In the original play, he was Larry Garfinkle. For Hollywood purposes he became Garfield, just as did actor John Garfinkle.

** Conservapedia, as I’m sure Drek knows, rated “Other People’s Money” as one of the twenty greatest conservative movies.

*** For a transcript of Larry’s speech go here.  The original stage play is by Jerry Sterner, the screenplay by Alvin (Three Spidermans) Sargent.  I don’t know how much credit each gets for this speech.

 Big hat tip to Ezra Klein for the material here.

Cross-posted at Montclair SocioBlog and in Portuguese at Conhecimento Prudente.

This ad illustrates some sociological idea, something I could use in class. I’m just not sure what it is.  (You may have already seen it. It’s been around on the Internet for a few months.)

Yes, it’s a beer commercial, not a documentary, not “reality.”  But the couples are real and unscripted – like the victims in a “Candid Camera” bit (or the subjects in some social psychology experiments).  Real and unscripted too is our reaction as viewers.  I don’t know about you, but after the ad was over, I realized that I had shared something of the couples’ anxiety at being different and hence excluded.  The bikers are neutral, maybe they are even silently hostile, so when they suddenly became accepting, my sense of relief was palpable.  I laughed out loud.

So sociological point one is that we are social animals.  Excluded we feel fear, accepted and included we feel comfort.  Point two is that laughter is social.  Here (and in many other situations) it’s a kind of tension-meter.  There ad had no joke that I was laughing at.  It was just a release from tension.  No tension, no laughter.

The ad also illustrates “definition of the situation.”  The rigged set-up shatters the couples’ standard definition of going to the movies. They are anxious not just because they are different but because they nave no workable definition and therefore no clear sense of what to do.

Finally, the ad raises the issue of stereotypes.  Stereotypes may actually have some general statistical accuracy.  The trouble is that the stereotype converts a statistical tendency to absolute certainty.  We react as though we expect all members of the stereotype to be that way all the time or most of the time.  Is it reasonable when you see 148 bikers to be fearful even to the point of leaving (I think some of the couples didn’t take the available seats)?  You don’t need to have read Hunter S. Thompson  to know there is some truth in the image of bikers as above the mean on violence.  But in a theater where you find them quietly awaiting the movie?

What other sociological ideas does the ad suggest?