Social and Economic Systems Studies: The Journal of the Japan Association for Social and Economic Systems Studies
Online ISSN : 2432-6550
Print ISSN : 0913-5472
Production-Supply System on Society Level and Paradox of Rationality
Harutoshi FUNABASHI
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1992 Volume 11 Pages 62-66

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Abstract
A production-supply system on society level consists of an administrative system and a domination system.Firms in an industrial domain and a government office that supervises them carry the administrative system. The domination system includes the administrative system and its interested parties, for example, residents around firms. Today, production-supply systems on society level produce many environmetal problems through the mechanism of social dilemma, that is, the "paradox of ratioality"concerning collective goods. Shortterm rational action of administrative system have long-term accumulative effects which destroy the environment and cause subordination problem in domination system.As the case of automobile exhaust control problem shows, in order to avoid the paradox of rationality, an adequate social norm must define constraints for the actors in the production-supply system on society level.Namely, social norm control system must take an active hand in the operation of production-supply system.Though, as the cases of nuclear power plants and of the nulear fuel cycle plant show, such intervention become difficult and even impossible when actors in the production-supply system on society level have too strong economical and political power.we must seek adequate constraints that enable the "harmony of rationality"between such system and the society.
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© 1992 The Japan Association for Social and Economic Systems Studies
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