The tools of interpretation: the principles of economics in Life reading notes 7 (end)

The previous article called "When Law meets economics", it is to use the basic thinking and basic theory of economics to explain the basic problems of the daily work of law, to solve the difficult diseases that the law can not deal with under special conditions. The author starts from the topic of fairness and justice, and points out that fairness and justice are not the ultimate aim of law, nor the ultimate truth of mankind, but the basic nature of human being in the process of production and life, in order to maintain stability, unity, and to achieve the maximization of benefits. In short, from an economic point of view, fairness and justice is a kind of wealth, happiness for people to live the tool. Then, the author extends the topic to the field of rights, and puts forward that the right is not born, and that the right of the people should be supported by the system and the human and material conditions, which is a perfect and supplement to the traditional legal thinking, which makes it consider the feasibility of the reality while studying the theory. In the last chapter of that article, the author gives some vivid examples to illustrate a set of "behavioral theories" of economics. This set of theories, which is a set of world views and methodologies of economics, is a soul that runs through the book and is clearly presented in the last chapter of the previous article.

So, since the theory of behavior in the previous four has been from the principle to the phenomenon, from the basic knowledge of economics to the social relationship between political science and the full range of interpretation, then this represents the economic world outlook and methodology of the "universal key" in the end how to use? Therefore, the last article of the book, is called "The master Key" how to use. This article only two chapters, namely 15th, 16 chapters, these two chapters I personally feel are more fragmentary, or to give some concrete examples to solve some specific problems, so that readers can continue to feel and understand the economics of behavioral theory brought about by the intellectual enjoyment. Because after all, a thing is what, why all good explanation, but how to use but according to the actual situation to consider, so there is no need to say so much.

Reading here, and thinking of the word "interpretation", it occurred to me that the title was called the tool of interpretation. Before looking at the previous several times always do not understand the meaning of it, but now suddenly enlightened--in fact, the whole book is not to introduce an explanation of the phenomenon of life in the economic "Behavioral theory", and this theory is the tool of interpretation! The first two is to elicit "behavior theory" plus the principle of interpretation, and then two is the combination of political science and Law, "behavioral theory" of superiority and extensibility, and finally a sketchy talk about behavior theory how to use, in fact, the whole book is saying how to use it, because the way of reasoning is to take the actual examples of life to tell! At this moment, I suddenly felt the practicality of economics and the refinement of the author's name in place.

Chapter I, 15th

The author believes that the way of thinking in economics is very unique and very delicate. He has always insisted on using this way of thinking to explore human behavior and social phenomena, and the results of thinking through the book of one by one to spread to the reader. In the preceding chapters, the author has dealt with the problems in sociology, politics and law by the angle of economics, and in this chapter, it is based on the material of the preceding chapters, hoping to summarize the special viewpoints of economic analysis. The first half of this particular point of focus, the second half, is to illustrate how to use this concise and effective economic analysis.

The way of thinking in economics

just points to the faculty quarters, on the design issue, "I" and the Lady had a controversy. House space is limited, but the use of the bearer of a lot of demand, make room for the two people common opinion, but in how to make up a disagreement. The core of the focus is that "I" think the kitchen can be knocked out, because the kitchen is too much space, second, the neighborhood has dozens of hotels, after dinner can be considered in the restaurant to solve, but the lady is firmly opposed to the kitchen knocked out, "a home how can no kitchen!" "There is a debate about whether the kitchen needs to be preserved. Obviously, this is a trade-off problem. On this topic, people tend to compare the advantages of having a kitchen with the disadvantages of not having a kitchen (or vice versa), but in fact, there are many advantages of the kitchen, of course, there are some shortcomings, no kitchen is a lot of missing, but there are some advantages. So the flat attitude is not to have the advantages of the kitchen to negate the absence of the kitchen, but instead of the "kitchen" and "no kitchen" two arrangements to compare, calmly list the pros and cons of both possibilities, evaluate their weight, and then choose the overall better arrangement. The benefit of having a kitchen means taking on the shortcomings of the kitchen and not having the advantage of "no kitchen" and avoiding the lack of that arrangement, and vice versa.

This example seems to be very simple, but deep pondering is meaningful, it involves the problem of the way of thinking. First of all, in the face of such a problem, it is necessary to understand that in the face of trade-offs, on the one hand can get the benefits of this choice, but on the other hand to bear the lack of this choice. At the same time, this option is not available for the benefit of the other options, but it also avoids the implicit lack of other options. Then, for the kitchen of this problem, is not necessarily adhering to the traditional thinking? Not necessarily, because in the process of growing up, a person will naturally contact and receive a lot of information, and then in the behavior of the information as a recognition and choice criteria. However, when things in the environment have changed, the meaning of these messages is worth rethinking and defining! Finally, the behavior of people is a series of trade-offs, and the essence of choice, in fact, is inevitable and relatively inseparable. In the trade-offs, the relative meaning has two layers. On the one hand, between two or more options, each is in a relative position, such as watching movies or watching TV, working, or relaxing. On the other hand, the meaning of each option is also relative to many related conditions, because, in abstract terms, the meaning of the thing itself is actually filled. For example, the meaning of the movie is filled by the cinema, the audience, the film itself, the companion and so on, and, similarly, the meaning of the work is determined by the work itself, the place, the colleague, the interaction and all the size details. In fact, the above analysis, is to guide the generation of an economic thinking mode, elaborated, is the connotation of economic analysis.

Further, the paper establishes a A-A1 structure model for the thinking mode of economics on this issue. When people think of a problem, they tend to consider the disadvantages of a practice (represented by a), but the story of the kitchen implies that a more thoughtful approach is not to consider this approach (a), but rather to use other practices (represented by A1) as a control. The structure of this a-a1, the author's exact words, "reflects the analytical approach of economics in a delicate manner." This is actually the "master key" in this article that can deal with almost everything in life. So can the A-A1 use the most concise statement to summarize the connotation? I think it should be the following 4 points: 1, whether a or A1, each choice is inclined to different aspects, such as the election of the president, each candidate has many different identities, experiences, talents, traits; 2, in many ways, a and A1 are usually mixed with pros and cons, Very few one is only excellent and the other is only lack of excellent; 3, since A and A1 is the pros and cons of each have advantages and disadvantages, so the final choice, it is necessary to weigh the pros and cons of the trade-offs, this choice means to choose a gains, do not choose A1 have lost but also have; 4, for each person, A and A1 implicit disadvantages is not the same, but the value of judgment is always subjective, choose who, is in the balance of gains and losses after a subjective preference, but does not mean that there are objective advantages and disadvantages, and "truth" has nothing to do. A little further, please think a word, is the Nobel Prize laureate north of the revelation: in the long run, determine whether a society can prosper, not have a wise leader or advanced technology; The winners in history are often the most people in that society have a good worldview! His so-called good world view, probably refers to the good way of thinking, a good way to analyze the problem!

Contrast and foil

In fact, the a-a1 of this "master key" reflects, is a trade-offs and tradeoffs. And the structure of the A-A1, it is equal to the problem (situation, options, etc.) to abstract, graphical, and then the process of their own thinking, like a picture comic book generally presented, hope to be clear, sophisticated, effective grasp each step, and can be summed up meaningful results. The so-called "meaning", more is the subjective decision and given by the person. The most important point is the meaning of "contrast" and "foil". Whether it is the concrete things in front of you or the abstract concept in mind, there is no definite connotation in itself, and the connotation of these things and concepts is filled and decided. The meaning of these things and concepts is reflected by contrast and foil with other similar and related things and concepts. And, by contrast and foil, we can always try to explore potential, other, and better possibilities. For example, in addition to the current options, you can try to think of other better alternatives; economic, political, social, cultural, scientific and technological, and so on in various fields of new products and inventions, in fact, reflects the economic analysis of the implicit initiative of innovation Spirit.

When people think about things, they tend to disadvantages the matter, but in fact this is a less complete way of thinking. The better way is to put this thing A and similar things A1 together, by a foil comparison, in order to foil the meaning of a. The author's way of thinking coincides with the words of Intel's president, Gorov, that "there is no better alternative to any business than the current approach (product)!" "This idea reminds us, in fact everyone can be seeking to change the innovation and seeking good entrepreneur, A-A1 structure although simple, but the use is very wide, every time, everyone can sit down and think about: In their current life, ideas, there is no possibility of re-grouping, get a better alternative?"

Second, 16th chapter

This chapter is the last chapter of the book, in this chapter, the author puts forward his own "teaching" two goals, in fact, in my opinion is also to write this book to reach the two goals of the reader: 1, try to cultivate the ability of abstract thinking, from the angle of economics, to construct a set of theory that can analyze social phenomena; 2. Try to stand on the shoulders of giants, Enjoy a vast view. The Giants here refer to the minds of the Giants, those who have won the Nobel Prize, if they can understand and grasp the essence of their thoughts, they can be based on their ideas, enjoy the vision, sweeping enjoyment. The first goal can be said to be the main part of the book is covered and elaborated, in the final analysis is the theory of behavior and a-a1 thinking method, the second goal is in between the lines can be reflected, because the book in the text is both accurate and normative, and erudite celebrity speech, the book saw the last chapter, we really can experience a " When the Ling, at a glance at the top of the mountain small "peak state. For this second goal, in this chapter, the author has a new and deeper extension. So he said the last chapter "on the one hand is a summary, on the one hand also try to make some extension." "The first is to compare the structure of a discipline with a pyramid, then to explain the structure of the pyramid of economics, then to explore the top of the pyramid of economics, and finally to clarify the wisdom of economic analysis and the fun and interest of economic analysis."

The Secret of the Pyramid

The story is very simple. The author is professor of economics, the professor of electrical engineering who lives opposite him, because they are neighbors, so they know very quickly, and have established a good friendship, and then exchanged each other's writings. Then there is a natural question: The book of an economist, will the professor of Electrical engineering be interested to see it? Similarly, does a motor department professor's masterpiece on the principle of invention make sense to the economist? The truth is, when the author gave the book to the professor of Electrical engineering, he told him that he had written well, that he had introduced the book to his students, and that he thought the author was in the analysis of the problem, that the angle of thinking was connected with some of the principles in his own book, and that the author looked at the professor of Electrical engineering. What is even more interesting is that when they talk about the students ' reactions to the curriculum, they find that they are almost the same: After the professor's class, they know what is called "independent thinking"! What is the reason? The author concludes, according to the story, that every discipline is like a small pyramid, both in the natural sciences and in the social sciences. The bottom of every pyramid is a variety of problems in this discipline, and the underlying is the main theory of analyzing and dealing with these problems, the more abstract theory on various theories, and the most important, the most significant and most reflective of the spirit of this discipline, and the core of the whole discipline, at the top of each pyramid. For different disciplines, the core concept may not be the same. But at the "idea" level, it may be that the disciplines are interlinked-one pyramid can jump to another pyramid. Therefore, a good teacher can not only master the core concept of the pyramid of their own discipline, but also like a tour guide, leading students in their own pyramid leisurely travel, and even, can also guide students how to transition from their own pyramids to other pyramids, enjoy the Feast of Knowledge Hall!

Of course, as far as natural science and social sciences are concerned, they can be seen as two great pyramids made up of small pyramids. Social science The structure of the pyramid is dominated by the value system, and the structure of the natural science pyramid is governed by the laws of nature. If it is well illustrated, it can certainly be the top of the pyramid of science, jumping to the pyramid of social sciences and vice versa. This is the mystery of the pyramid.

The Pyramid of Economics

As far as the pyramid of economics is concerned, the bottom layer is the individual research topic, the middle is various theories, the top is the core analysis concept. For more than more than 200 years, the efforts of generations of economists have made the pyramid more and more solid, and the volume is constantly inflated by the richness of the content. However, the spirit of the whole pyramid is still timeless: economics believes that for human behavior and social phenomena, we can try to make a reasonable, consistent description and analysis in the mood and status of a bystander. In short, it is a kind of consistent "Tao". In short, this is the explanation: 1, we see any social phenomenon is not appear in thin air, but meaningful. Therefore, it is worth trying to understand the reasons behind the formation of these phenomena, 2, the basic characteristics of people is "rational", "self-interest", people are able to think, will strive to pursue their own well-being of a creature. Based on this perception of human nature, it is often easy to explain the phenomena we observe by pondering over some of the conditions that exist in the environment. So, from the two simple and plain concepts of rationality and self-interest, we can consistent, understand, grasp and analyze the world we face. From 1960 onwards, economists began to expand to the political, legal, social and other fields, and the results are brilliant, mainly because the analysis of economic structure is simple and plain, from the characteristics of human behavior as the starting point of the theory. Since people in all areas of life are self-seeking, economic analysis of course, enjoy the advantages of consistent and fun.

In the high and large pyramid of economics, the author considers the word "cost" to be the top-notch of an analytical concept that is the most important, the most central, and the most sufficient to reflect the essence of economic science. The cost here is not only the cost of monetary money, but also the cost of other values such as conscience and morals. In fact, each person's choice is the cost of the consideration; choosing one of them, being given up or not choosing is (opportunity) cost. On a deeper level, people have a choice, or because there are differences between options. Therefore, the choice and cost behind, in fact, there is a "relative" this more essential concept-if the choice between the "relative" no difference, there will be no cost problem, the choice will lose meaning. But in fact, the basis of behavior is the first cognition, there will be judgment and choice. The relative heights and differences between things are not objectively existent, but are determined by their own subjective. Therefore, the difference of how much and the degree of superiority, or by oneself to choose.

The Wisdom of Economics

In both spirit and core, economics must be able to operate in practice. After years of exploration, the author slowly summed up four important conclusions of economics:

1, the person is rational, self-interest;

2, existence is not necessarily reasonable, but there must be a reason;

3, good value to appear, is conditional;

4. The meaning of a thing is set off by other things.

These four points, is the author of economics to see life, to see the wisdom of the world refined. So what is the basic idea of the author? It is this: economics implies a very special way of thinking, since all kinds of phenomena are composed of human behavior, so it is worth to clarify the behavior of people first, and then as a basis, you can try to analyze the economic, political, social, legal and other areas of the problem. The author repeatedly lay out, is the wisdom of the history of economic scholars summed up-in the perspective of economics, consistent analysis of various social phenomena! This is the basic idea of the book, and it is also the basic idea that the author explores the world from the angle of economics and tries to use economics as a tool to explain the world.

In economics, since there are twenty or thirty Nobel Prize giants, who should choose to bow to whom, and continue to climb on whose shoulders? Mr. Xun Bingyuan a way of saying: "You can start with any giant, read and think about his work, and then start with another giant after reading it." After touching the two or three-bit will slowly discover, oneself seems to be by the different facing climbs, but climbs is the same pyramid, the unique way and coinage. Once you reach the top, you will also have a beautiful view of the feelings! "In fact, whether it is economics, or even law, political science, sociology, and then the social sciences, the natural science of the pyramid, can do so to climb, to the end will also learn to have income, in the intellectual knowledge of the same challenge and fun!" And as for the author's greatest hope for the reader, but also hope that the reader can give him the highest evaluation, is a sentence: In the past I used experience to face the environment, I will be theoretical wisdom to perceive everything!

The tools of interpretation: the principles of economics in Life reading notes 7 (end)