Industrial Paternalism as Institutional Trap (Qwerty- Effects)

N. Bagautdinova, A. Sarkin, G. Khadiullina, B. Averyanov

Abstract


The article provides the theoretic-methodical approach to the particular qualities of the development and functioning of paternalism as a special management practices, based on a system of mutual expectations and actions on the part of management and employees of the industrial sector. The given approach takes the principles of behavioural economy as the basis and explains the necessity of methods of state regulation by the existence of institutional traps (QWERTY effects) and cognitive and behavioural anomalies corrected as a result of state implantation of the normative standard into the structure of subjective preferences of economic agents. The article provides rationalization for the necessity of application of measures of the direct influence limiting possibilities of an individual choice present at a high risk level of irrational behavior, and the measures of indirect influence correcting an individual choice of short-term benefit, interfaced with high expenses in the long-term period.

DOI: 10.5901/mjss.2014.v5n18p49


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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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