Cost–benefit analysis in the context of "Norms (sociology)"

⭐ In the context of norms (sociology), cost–benefit analysis is considered…

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⭐ Core Definition: Cost–benefit analysis

Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives. It is used to determine options which provide the best approach to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements. A CBA may be used to compare completed or potential courses of action, and to estimate or evaluate the value against the cost of a decision, project, or policy. It is commonly used to evaluate business or policy decisions (particularly public policy), commercial transactions, and project investments. For example, the U.S. Securities and Exchange Commission must conduct cost–benefit analyses before instituting regulations or deregulations.

CBA has two main applications:

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In this Dossier

Cost–benefit analysis in the context of Social norms

A social norm is a shared standard of acceptable behavior by a group. Social norms can both be informal understandings that govern the behavior of members of a society, as well as be codified into rules and laws. Social normative influences or social norms, are deemed to be powerful drivers of human behavioural changes and well organized and incorporated by major theories which explain human behaviour. Institutions are composed of multiple norms. Norms are shared social beliefs about behavior; thus, they are distinct from "ideas", "attitudes", and "values", which can be held privately, and which do not necessarily concern behavior. Norms are contingent on context, social group, and historical circumstances.

Scholars distinguish between regulative norms (which constrain behavior), constitutive norms (which shape interests), and prescriptive norms (which prescribe what actors ought to do). The effects of norms can be determined by a logic of appropriateness and logic of consequences; the former entails that actors follow norms because it is socially appropriate, and the latter entails that actors follow norms because of cost-benefit calculations. Others see social norms emerging as part of an evolutionarily stable strategy, where they stabilize through third-party punishment.

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Cost–benefit analysis in the context of Societal norms

A social norm or norm is a shared standard of acceptable behavior by a group. Social norms can both be informal understandings that govern the behavior of members of a society, as well as be codified into rules and laws. Social normative influences or social norms, are deemed to be powerful drivers of human behavioural changes and well organized and incorporated by major theories which explain human behaviour. Institutions are composed of multiple norms. Norms are shared social beliefs about behavior; thus, they are distinct from "ideas", "attitudes", and "values", which can be held privately, and which do not necessarily concern behavior. Norms are contingent on context, social group, and historical circumstances.

Scholars distinguish between regulative norms (which constrain behavior), constitutive norms (which shape interests), and prescriptive norms (which prescribe what actors ought to do). The effects of norms can be determined by a logic of appropriateness and logic of consequences; the former entails that actors follow norms because it is socially appropriate, and the latter entails that actors follow norms because of cost-benefit calculations. Others see social norms emerging as part of an evolutionarily stable strategy, where they stabilize through third-party punishment.

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Cost–benefit analysis in the context of Rational choice theory

Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits.

Rational choice models are most closely associated with economics, where mathematical analysis of behavior is standard. However, they are widely used throughout the social sciences, and are commonly applied to cognitive science, criminology, political science, and sociology.

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Cost–benefit analysis in the context of Welfare economics

Welfare economics is a field of economics that applies microeconomic techniques to evaluate the overall well-being (welfare) of a society.

The principles of welfare economics are often used to inform public economics, which focuses on the ways in which government intervention can improve social welfare. Additionally, welfare economics serves as the theoretical foundation for several instruments of public economics, such as cost–benefit analysis. The intersection of welfare economics and behavioral economics has given rise to the subfield of behavioral welfare economics.

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Cost–benefit analysis in the context of Beneficence (ethics)

Beneficence in general means "active well-doing". Duties of beneficence form a part of various religious and secular ethical theories. As an applied ethical concept relating to research, beneficence means that researchers should have the welfare of the research participant as a goal of any clinical trial or other research study. The antonym of this term, maleficence, describes a practice that opposes the welfare of any research participant. According to the Belmont Report, researchers are required to follow two moral requirements in line with the principle of beneficence: do not harm, and maximize possible benefits for research while minimizing any potential harm on others.

The idea that medical professionals and researchers would always practice beneficence seems natural to most patients and research participants, but in fact, every health intervention or research intervention has potential to harm the recipient. There are many different precedents in medicine and research for conducting a cost–benefit analysis and judging whether a certain action would be a sufficient practice of beneficence, and the extent to which treatments are acceptable or unacceptable is under debate.

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