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Summary of Cultural Belief

In: Business and Management

Submitted By thanadul
Words 414
Pages 2
Paper Summary The author in this study assessed the relationship between culture and social organization by integrating sociological and game-theoretical concept. This historical analysis tries to capture the culture belief that affects individual actions. It is believed that the distinctiveness of cultural belief will lead to a different way of organizational and economic development. In addition, this research was done under the assumption that cultural beliefs are identical and commonly known. The author uses the example of two city-states in the late medieval period which is Maghribi and Genoa to represent collectivist and individualist societies respectively. In collectivist society people tend to interact more within the same specific group such as religion, ethnic. On the other hand, individualists are integrated in the way that they interact with people from different group through formal economic and social institutions. In order to trade in that period, merchant need to hire agents to facilitate their trading with other cities. As a result, there is a possibility that the agent will cheat. Intuitively, collective societies will react to action of merchant and agent. Collectivist will not choose agents who cheat while the individualist will not take that into consideration. Thus, merchants are more likely to hire merchants in collectivist societies creating a horizontal society. Another finding in these two diverse cultures is that Maghribis share more information while Genoese are not talkative about their business information. Moreover, collectivists are more efficient in intraeconomy due to lower cost of formal organization and on the other hand for individualist. Further, Genoese represent the developed west implying that individualists are more efficient in the long run. This may explain why the west developed first. From my point of view, formal

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