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SOCIAL CAPITAL BY A
WIN - WIN- WIN METHODOLOGY
Abstract: The paper deals with local development, both as a regional and social sciences
field. It has to prove that building social capital at local level mainly depends on social trust
links among local people: Social cohesion based on social capital may be measured by the
diversification Rate (R*) from strict globalization rules: From this point of view, local people
intervention should be useful, so as to diversify these “rules” at local level adjusting them to
local identity, including communication code, customs, ethics, culture. The Win-win-win
methodology [Papakonstantinidis Model] should facilitate local people to “readjust”
bargaining globalization rules locally, through a sensitization process: Community is defined
as a discrete spatial/ cultural entity at its sensitization process’ limit.
The aim of this paper is to prove that, (1) Social Capital as a concept of community
behavior and natural resources management, defined as the “capital that refers to
connections within and between social networks (emphasizing the social trust, in this
paper)- something of a cure-all, for the problems of a modern society” (Portes, A.,
1998) may be the base of a local development program. (2) Local Development may
be concerned as a unique diversification / declination from the globalization rules
(Papakonstantinidis, 2007) (3) The discrete entity’s “diversification rate” (R*) from
globalization/ or bargaining rules, (Walras S, 1980) may be the crucial parameter
which would define “Local Development” as a social cohesion result at local level.
(4)Local Development is concerned as the limit-end of a unique and continuous
sensitized development process, applied in a discrete spatial entity
(Papakonstantinidis, 2008/ May), (5) Local Development is achieved via GOOD
CASES rather than “good practices”, due to the unique identity each region has, as
well as its people with their own communication code, ethics, mentality, customs.
(Katseli Luca 1979), (5) A win-win-win approach may be the appropriate
methodological tool toward introducing “sensitization” in the development process. It
may strengthen social cohesion process by improving its confidential indicators (so to
trust each-other in interrelations process).
Limitations are resulted, both by the Games Theory and the Modern Innovation
Theory application in social sciences and their synthesis into a social market problem
within the Community.
From the Local Development side, Kenneth Wilkinson (1991) focuses on the
endogenous local development process / “bottom-up approach” (bargain, locally) 2nd,
Friedman / Weaver – UCLA (1978) in their classic “Territory and Function” refer :
“The base of an autonomous local development may be a discrete value system, an
ideology, local people’s reaction to the dominant local principles (including local
communication code, customs, culture), creating thus the “social cohesion
environment” at local level.
From the pure Sociological side, J. Coleman (1988) as “Social Capital” describes the
cooperation processes of individuals, which minimize possible dilemma, coming
from individuals’, networks and common actions. Besides, Glen Loury (1977) used
the term “social capital” to describe a dynamic theory of racial income differences’
discrimination (women, minorities, etc). J Coleman adopted Glen Loury’s definition,
in developing and popularizing the concept Also, Putnam (2000) describes social
capital as the basis of social schemes creation (i. e networks)
Non-co-operative game, is a game between two (2) players/ individuals who have
opposite interests (Aumann Robert , 1987). Each player makes his own choices, based
on instant reflections’ rational movements and his physical cleverness.
The game/ bargain is defined by the result (pay-off) and not by players expectations-
It presupposes best choices by both players towards meeting individual interests
[“winning strategies”- Harsanyi John(1973].
Players/ or negotiators do not regret, a posteriori, from their own decision taken,
based on personal choices, during the bargain. Each of the players knows a priori that
the other negotiator (or player) is as clever as he is.
During the bargain, a “mutual respect” between the two bargainers to each other’s
best choices’ is necessary.
It is recognized that “The more DETERMINED to break down the negotiation (= less
utility), the more satisfied (=better shares) – the more risk, the more profit.
Social behavior is not recognized as an acceptable one in the bargain, thus deriving
unfair results: That means, “who needs the agreement as the result of a bargain, has
to loose in shares, by accepting any result”.
Information may be the “link” between knowledge creation and the bargaining
process. In particular, “Information” is a power factor in pure individuals winning
strategies (Aumann Robert, 1987).
The more information, the better winning strategy, the more profit. Each of the
players / negotiators, starting negotiations with the other, expects to gain the
maximum profit.
Interaction, based on instant reflection individual winning strategies, is the base of the
Nash Non Cooperative Games Theory A two (2) 2–person anticipation is based on
utilities.
According to Nash Theory, a unique solution exists that maximises the product of the
participants’ utilities. There is, therefore an interaction between “utilities” and
“strategies” In particular, “utility” expresses individual choices based on individual
necessities “Strategies” express choices + will in personal level, taking into account
the interaction factor (the other’s choices) Utility is the subjective and strategy is the
objective factor of the same anticipation.
In the “Two-person utility Theory” there are two (2) individuals in a bargain who
have the opportunity to collaborate for mutual benefit in more than one way. In its
simple/initial version, no action, taken by one of the two individuals without the
consent of the other can affect the well-being of the other one, but in real terms there
is only ONE decision, taken by the involved in a bargain individuals.
• Utility in the bargain is a personal matter: Utility “units” are not compared.
(Kuhun-Nassar, 2001)
• Utility “units” express “fear units of a disagreement outcome”
• If “A” needs more the “agreement” to be achieved, than the payoff coming
from the bargain, then he should be ready to accept any result of agreement,
even if it is not favorable for him (loss of shares)
• If “A” has decided not to accept an agreement during the bargaining process,
then he risks more but –at the same time- has to win more from the agreement,
in terms of shares.
• The “utility range” expresses the optimist and/or the pessimist instant
reflection of each party.
• “Utility” expresses individual choices based on individual necessities and
will. It is rather a subjective than objective factor, influencing individual
behavior. On the other hand, “individual strategies” in the bargain –the
objective factor- are defined by personal choices and “will”, resulting from the
necessity to meet personal “needs”. From this point of view, “Utility” , as a
subjective factor is expressed by “strategy” – an individual winning strategy-
in the bargain, so as to meet “Utility”. There are “links” between “Utility” and
“Strategy”: “Utility” is the ability to meet “needs” and “Strategy” is the plan –
the individual plan- to achieve this ability, step by step
• “Utility” is the subjective factor and the “Individual Winning Strategy” is the
objective factor of the same “thing”: Bargainers have needs (=utilities). In
order to satisfy these “needs”, they use “individual winning strategies”, as the
result of their “instant reflections” in the Bargain. (table 1)
Table 1: BARGAIN
Random Sharing between “A” and “B”
Suppose that “winning strategies” [ Pi, Qi] are in a fine ratio with the players’
(bargainers’) UTILITY ( linear function: corresponds 1-1 to bargainers’ Utility
Function), under the dogma “the more decisive to break the contract down, the more
satisfied from the bargain leading to the contract” (Kuhun-Nassar, 2001). That is true:
Bargainers expectations are 1-1 to expected Utilities for each of them, coming from
the bargain. (Bernheim & Douglas B. 1984). On the other hand, the more
information, the more uncertainty. Bargain gets its own rules out of cooperation.
People are competitive rather, than co-operative: Winning strategies are led by
bargaining rules (rules of pure competition). Nash has described the “bargaining
problem” not by expectations, but, directly, by the results (pay-off) of the bargain.
In our example, the crucial point [the max] is 1240 (40x31) : this is the point of final
agreement led by the bargain. On that point, shares are: 40% for “A” and 60% for
“B”. On that point, personal satisfaction or utility units are 40 units for A and 31 units
for B : That’s the point of agreement, expressing “fear of breaking down the
agreement for “player” “A” and , at the same time, the risk for the “player” “B” of
breaking down the agreement. In a 2-person anticipation, each of the two (2)
bargainers may ask themselves one question, as the result of “good strategies” [instant
reflection thinking] in the bargain:
What should be the best for me, taking into account that the other
person (bargainer in a negotiation) should try for the best for
himself –thus recognizing that the other person may be as clever as
I am?
What should be the best for me, taking into account that the other
person (bargainer in a negotiation) should try for the best for
himself –thus recognizing that the other person may be as clever as
I am and, at the same time, taking into account that COMMUNITY,
as the third or invisible part also participates by the “bargainers’
characteristics” (shares/utilities)
Papakonstantinidis, 2003
According to the above analysis, paper contribution in the scientific thought (2007)
should be summarized in introducing “the third WIN” or the third “person” in a two-
party bargain, i. e the “C” “invisible part, which should be the “ Community interest”
= “C” , thus taking part as “community” be present in every two-party bargain,
claiming its own “share” from this
Suppose that:
• Ua = Pi, Ub = Ri , Uc = Qi , ....in a mathematical approach (tables
1, 2):
• Ua = x , Ub = (100-x)k and f’ = [ x (100-x)k ]΄ = 0 , so that Ua +
Ub = max
THEN
lim Pi(&) Qi(&) Ri(&) = max Pi Qi Ri = max Ua Ub Uc = Ua + Ub + Uc
i→∞
or, how to transform a “competition” into the absolute cooperation,
taking into account the integrated information, coming from
knowledge transfer AND the sensitization process in the community,
thus maximizing bargainers utilities and the Community utility (Uc)
23 70 40 24 960 7 2 1920
14 80 50 12 600 6 1 600
(Papakonstantinidis Proposal)
Local Leadersh
Abilitie ip Properties
s Priorities
Flag Theme
Jointing the
Active Creating a endogenous
Participation team forces on a
Roles in psychology common
planning/ among local goal
5. CONCLUSIONS/ PROPOSALS
1. Social Cohesion –necessary for the L-D process, thus building local people
identity AND development (through the appropriate –for the place- flag
theme - may be , at the same time, the cause and the result of building the
Social Capital at Local Level
2. Building the Social Capital at Local Level, may be proved to be equivalent to
“Social Confidence”, or “Social Trust” among local people (Llambi Louis
2008, Lados M,& Lachewski Lutz (2003)
3. At the same time, Community [ the “C” factor” ] “participates” as the
THIRD or invisible part in any two-person negotiations
4. By introducing the “C” factor in any 2-person negotiation, then what should
be result, could improve individual strategies and /or behavior in the bargain,
from a pure “conflict” to round the corners of this conflict, then transforming
competitors to “instant alliances” (including the Community profit) : This is
the paper’s contribution)
5. Local Development is mainly based on this “new” perception
6. Based on this “perception” (round the conflict corners-the Community within)
it’s easy for local people to find a “FLAG THEM” (2007- S Africa) for their
L-D process: see at Flow Chart That is the win-win-win Methodology/
Papakonstantinidis Model)
7. According to win-win-win methodology, L-D process, in terms of
diversification rate, from Globalization’s Rules may be justified, creating the
Community as a discrete spatial Entity
8. Technological changes and human / social relations move in the opposite
direction-“vice versa”.
9. Introducing a three-poles dealing system may improve the “bargaining
perception” thus influencing social behavior, introducing a new bargaining
perception/ethic
10. A “new bargaining perception” including the “Community profit” as the
“third” or “invisible” parameter in a bargain between TWO persons-players
may change some Globalization negative conditions, providing them with
“rules”/ social rules through social behavior changing.
11. Reforming a bilateral contradiction in a 3-part bargain between two players
(including the Community “C” as the “invisible” part between TWO, in fact
may reverse the base of human negotiation : From “competition” to “co-
operation” Reforming the “competition” to step towards “social cohesion” ,
the “objective perception of the world” may be changed into a more
ideological: From material to a “thinking” world (Kamitza R 1994) The “C”
partner my be proved to be the key-factor, against war feelings thus
introducing the Greek philosophy’s “METRON”
12. Each of the THREE parts (A, B, & C) in any bargain, may ask itself THREE
questions, thus maximizing its own profit (economic, social, cultural,
environmental etc) :
What should be the best for me, taking into account that the other person (bargainer
in a negotiation) should try for the best for himself –thus recognizing that the other
person as clever as I, AND taking into account [at the same time] that
“Community” as the third or invisible part of negotiations between TWO, also
participates and also tries under the same conditions [ “Community” as clever as the
two bargainers] so bargainers AND the Community to be winners? - 3win Model.
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