Background
Social customs refer to established patterns or norms of behavior that are expected in a given society. These customs guide individuals on how to act in various situations without requiring them to make explicit decisions each time such scenarios arise.
Historical Context
The concept of social customs has been embedded in societies since the dawn of civilizations. These customs often develop organically over time, shaped by cultural, historical, and social forces. They facilitate social cohesion and streamline interactions within a community.
Definitions and Concepts
Social customs can include a wide range of behaviours, from everyday etiquettes to complex institutional norms. Examples of social customs are polite greetings, dress codes, and trade union membership.
- Efficiency in Decision-Making: Social customs help solve decision problems by providing predefined responses to common situations.
- Non-rational Behaviour: Social customs can sometimes explain actions that appear illogical on an individual level but are rational in a communal context.
Major Analytical Frameworks
Classical Economics
In classical economics, social customs may be addressed in the context of externalities and public goods, where individual behaviours collectively yield outcomes that are of societal significance.
Neoclassical Economics
Neoclassical economics might investigate social customs through the lens of utility maximization and expected utility theory, contemplating why individuals engage in behaviours that provide no immediate personal gain.
Keynesian Economics
Keynesian frameworks might focus on how social customs impact aggregate demand and consumption behaviours, examining wider economic outcomes from a community perspective.
Marxian Economics
From a Marxian angle, social customs can be viewed as part of the superstructure, reinforcing existing class relations and societal norms to maintain the status quo.
Institutional Economics
Institutional economists would analyze social customs as part of the broader institutional structures that shape economic behaviour, emphasizing their role in reducing transaction costs and facilitating negotiations.
Behavioral Economics
Behavioral economics significantly focuses on social customs as they relate to heuristics, biases, and other psychological factors influencing economic decisions.
Post-Keynesian Economics
Post-Keynesian economics could explore how social customs impact economic variables such as price stability and employment through real-world, observed behaviours.
Austrian Economics
Austrian economists may interpret social customs as spontaneous orders that emerge from the actions and interactions of individuals.
Development Economics
In development economics, social customs are often examined in the context of how they affect economic development and sustainability.
Monetarism
Monetarism may consider social customs in aspects like the velocity of money and consumption patterns, though primarily as secondary concerns to core monetary theories.
Comparative Analysis
Comparing different schools of thought, while classical and neoclassical views may treat social customs as anomalies or fringe elements, institutional and behavioral economics place them at the forefront of economic discussion. Marxian and Austrian perspectives offer unique ways to understand the emergence and perpetuation of social customs.
Case Studies
- Trade Union Membership: Examines why individuals join unions even when non-members benefit from collective bargaining.
- Tax Compliance: Investigates reasons behind tax compliance when the expected return from evasion is positive.
- Door-opening Etiquette: Discusses social norms guiding polite interactions in public.
Suggested Books for Further Studies
- “The Social Animal” by David Brooks
- “Thinking, Fast and Slow” by Daniel Kahneman
- “Mind, Society, and Human Action” by Richard E. Wagner
- “Rules of the Game” by Shubha Ghosh
Related Terms with Definitions
- Norm: A standard or pattern of behavior that is typical of or expected within a particular society or group.
- Institution: Established laws, practices, and organizations in a society that shape and guide behavior.
- Externality: A cost or benefit for stakeholders other than the obvious individuals involved in an economic transaction.
- Public Goods: Goods that are non-excludable and non-rivalrous, benefiting all members of a society.
