Economic Behavior and Reciprocity Adam Bartley Simeon Neisler Erik Kvenlog Kendall

Economic Behavior Choosing a course of action to maximize perceived benefit Resources are limited whereas human wants are seemingly unlimited, meaning choices must be made. Choices are made as to what is most important top the person at that particular time. Benefits don’t necessarily mean financial gain

EB continued Example- Hazda (hunter-gatherer people) focus more on free time than material wealth. They spend much of their time gambling and do not want to give up their way of life because it would require too much work, and they wouldn’t have free time anymore.

EB continued Anthropologists are concerned with the issues of economic development in poor nations. They say it is difficult to design programs the promote development without understanding of that cultures institutions or what motivates that country’s people.

Reciprocity A mutual give and take among people of equal status There are 3 types of reciprocity: general, balanced, and negative.

Generalized Reciprocity It’s a distribution of goods with no immediate or specific return expected. An example of this is parents and children. The parents provide everything for the child because of a sense of love or responsibility. Another example is food distribution among hunter-gatherers. Each person or group gets an equal share depending on the relationship to the hunter (Ju’hoansi use this system)

Balanced Reciprocity Is an exchange of goods of nearly equal value, with a clear obligation to return them with a specified time limit. An example of this is gift giving at birthdays, if they get you something when theirs comes around they will expect something too. This system is often a characteristic among trading relations among non-industrialized societies.

Negative Reciprocity Exchange conducted for the purpose of material advantage and the desire to get something for nothing Cheating, theft, gambling, and haggling are all examples of this. Among tribal and peasant societies, it isn’t okay to do this to friends or “insiders” but perfectly fine to do this to “outsiders” or strangers.

Redistribution Redistribution: Goods are collected from the members of a society, and then redistributed back to the members of that society. The method of distribution will vary between societies. In industrialized societies, it usually occurs via taxation, and in pre-industrialized societies, it occurs via a feast (usually called a potlatch)

Market Exchange Market Exchange: Goods and services are brought and sold at a money price determined by supply and demand. Theoretically in an entire market exchange economy, anything could be bought or sold. Although typically governments will regulate what can be purchased, such as weapon or drugs.

Capitalism Capitalism: The most prolific form of market exchange, has three key attributes. 1. Most productive resources such as factories, farms, or corporations. Are owned by a small portion of the population (typically the wealthiest) 2. The primary resource of most individuals is their labor. (People work for wages, basically) 3. The value of a worker's production will always be greater than the value of their wages. (This is called the surplus value of labor)

Production Basic resources are land, water, and materials tools are made of Productive resources are materials or information used to create goods EG: watercraft and nets in fishing societies Access to knowledge is important as a resource Large scale societies have and need more resources than small scale

Foragers Weapons and tools to gather food and knowledge to make them Land and water essential

Pastoralists Livestock and land are primary resources Need permission from land resources

Extensive Cultivation Land is shared communally Land may not be sold or transferred

Intensive cultivation As a society becomes ore complex, it needs more resources and high productivity to sustain it Complex tools and technology Individual control of land important Usufactory rights: The right to use land but not sell or alter it.

Vocab Usufructory rights – The right to use something but not alter or sell it in a substantial way. Household – a group of people united by kinship or other links who share a residence and organize production, consumption, and distribution among themselves. Firm – An institution composed of kin or others groups that is organized primarily for financial gain.

Firms and Households In nonindustrial societies, production is based around the household. Households not only consist of just family members, but also frequently include servants and lodgers. Individuals are tied to firms through the sale of their labor for wages. Firms promote economic growth

Division of Labor by Sex Sexual division is a universal characteristic of human society Women have been historically less mobile than men due to pregnancy and nursing, thus restricting them from traditionally “manly” tasks like hunting and warfare. Women have become more involved in the workforce in developed and developing countries

Specialization in Complex Societies Specialization promotes efficiency and the ability to produce large quantities of goods. Simple tools are technologies that can be learned to be made through informal socialization. The characteristic division of labor is not by job, but by age and sex Industrialization as an adaptive strategy requires the greatest specialization of labor Example - Only a small number of population is directly involved in the production of food