Property and Power (Units 5.0-5.7)

A set of vocabulary flashcards drawn from the lecture notes on Property and Power, highlighting key concepts and definitions.

Article I of the Royal Rover's Articles

Guarantees that every man has a vote in the affairs on the ship; equal title to fresh provisions.

Institution

Rules, both written and unwritten, that govern interactions and distribution of products in joint projects.

Power

The ability of people to do and get things in opposition to the interests of others.

Pareto Efficiency

An allocation where no one can be made better off without making someone else worse off.

Maximin Principle

John Rawls's principle suggesting the support of institutions that maximize the payoffs for the worst-off in society.

Take-it-or-leave-it offer

An exchange terms setting where one party leaves the other with no alternative but to accept or reject.

Reservation Option

The minimum acceptable outcome for an individual in a negotiation, beyond which they would prefer not to work.

Efficiency

A measure of how well resources are used to produce outcomes; often objective.

Fairness

A subjective evaluation of outcomes, assessing equity and justice in economic interactions.

Ultimatum Game

A game that explores negotiations, where one person makes a proposal and the other can accept or reject it.

Bargaining Power

The ability to influence the terms of an exchange or the distribution of a resource.

Economic Interaction Outcome

An allocation explaining each person’s contribution and how the resulting product is distributed.