Everyone that comments online should be on the same page or the power of the written word aka the force is not maximized. I’ve left a hint or two on these pages while Jason at American Zombie came right out and spilled everything in early June, 2010 via a post that should be on the must-read list for every aspiring politician. The internet has brought secular change to communication on the scale not seen since the printing press and those can harness the power of the medium can effect change.
The concept is found in economic theory and I am convinced it has application beyond the financial sector in Moral suasion, in the case of Slabbed the “pure” variety:
Moral suasion will be “an effective economic policy whenever the expected costs of noncompliance is made to exceed the cost of compliance”.
There are 2 necessary conditions for this to happen.
- First, citizens must support the Government’s policy, thus entailing objective congruence between the promoter of moral suasion and the target whose behaviour should be changed. That support emanates from such factors that determine compliance as; potential illegal gain; severity and certainty of sanctions; individual’s moral development and their standards of personal morality; individual’s perceptions of how just and moral are rules being enforced; and social environmental influences. …….
- Second, the population of economic agent to be persuaded must be small. Fewness entails the easy identification of economic agents to persuade, and increase the perceived likelihood that non-compliers will be identified and punished.
Even when those two necessary conditions are not fully met, moral suasion, if only partially effective, can be a valid choice of policy instruments if the alternatives are doing nothing or taking actions with high opportunity or administrative costs.
Although neither a necessary nor a sufficient condition, a low level of competition amongst suppliers in the economy contributes to increased effectiveness of moral suasion.
I’ve seen these concepts in action and not just on the finance boards. Consider this lesson 1 of the Sop Advanced Internet Commenting Course. 😉