Types of Economic Behavior: The Instrument for Management of Individuals, Institutions, Countries and Humankind
22 Pages Posted: 2 Nov 2011
Date Written: November 1, 2011
This is short preliminary paper. In next papers the detailed description of all aspects will be published.
The typology of economic behavior is constructed. The type of economic behavior is the mathematical (abstract) operator in the information space, which is constructed by a special method from the data about economical problem. It is shown that for description of any human behavior (his/her decision making) it is need only 16 two-component abstract information operators (2AIO), which are constructed by a special manner. It is shown that there are only 16 types of interaction (relationship) between 2AIO.
It is shown that typology of 2AIO can to describe wide field of human behavior. Authors carried out the identification of types 2AIO for more than 2 thousand persons from 1998 to 2011. Ex post and ex ante forecast was made for rational behavior for each person. The theoretical prediction for relationships between persons (as between types of 2AIO) was also placed (more than 3 thousands of forecasts). More than one thousand predictions have been done for the level of effectiveness for defined functional responsibilities of a person.
As examples there is the description: forecast the individual behavior (the causes for suicide of eminent physicist Paul Ehrenfest in 1933); dangers for the High Level Managers. A few theorems on development of mechanism design for application of game theory in economics are presented.
With using of 2AIO typology is an effective tool for solving such problems: the classification of the purposes for the person’s behavior; the forecast of economic behavior for the person; the forecast of constraints for the person’s behavior in a given interior of activity; the development of effective mechanisms and technologies for human resource management (e.g., motivation and incentives); the choice of the most effective trainings for the person, taking into account the interior of his/her behavior; the choice of optimal learning styles for the person.
The hierarchical systems for cooperative behavior (pyramids of behavior) from 2AIO were considered. It is shown that there are people who have the ability to introduce new information at a given level of the pyramid of behavior (or to adequately recover the missing it part at this level). These people are called coordinators. The coordinator is often named as “talent” or “genius”. The methods for identification of coordinators are constructed. It is shown that the pyramid of behavior with high-level (for example, at the country level) can be playing a role an institution. It is shown that if at least one player is the coordinator (for this problem), the results of the modern game theory are incorrect.
As examples there is the description: elite for the country; modern terrorism and National security (including the terroristic act September 11, 2001 in USA, Russia: 2002 and 2004, Spain: 2003, United Kingdom in 2007 and beyond; these technologies were forecasted in 1998 and presented in Internet in Russian); reasons of the financial crisis at 2008; three levels of loyalty (three-level of goals); democratic mechanisms are not applicable to the coordinators; the P versus NP Problem solving in the frame of 2AIO.
Obtained results can to change the life for billions people.
Keywords: economic behavior, joint economic behavior, typology, forecast, game theory, management, National security
JEL Classification: B41, C60, C70, C91, C92, C93, J24, M12, M54, O10, P11
Suggested Citation: Suggested Citation
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