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Download An Economic Theory of Greed, Love, Groups, and Networks by Professor Paul Frijters, Dr Gigi Foster PDF

By Professor Paul Frijters, Dr Gigi Foster

Why are humans dependable? How do teams shape and the way do they bring incentives for his or her individuals to abide by way of workforce norms? in the past, economics has basically been in a position to in part solution those questions. during this groundbreaking paintings, Paul Frijters provides a brand new unified idea of human behaviour. to take action, he comprises finished but tractable definitions of affection and gear, and the dynamics of teams and networks, into the normal mainstream fiscal view. the result's an stronger view of human societies that however keeps the pursuit of self-interest at its middle. This booklet presents a digestible yet complete conception of our socioeconomic method, which condenses its gigantic complexity into simplified representations. the end result either illuminates humanity's heritage and indicates methods ahead for guidelines this day, in components as assorted as poverty aid and tax compliance.

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Additional resources for An Economic Theory of Greed, Love, Groups, and Networks

Sample text

This basic tendency will be argued to play a key role in the development of groups and group ideals. Just as mainstream economists, including myself, would argue that our greed colors everything we do, so too will I argue that our innate tendency to believe in the reciprocity of the unseen or otherwise uncontrollable is present in almost every sphere of human life. Methodological considerations It is not obvious how to approach these broad topics. One could imagine building up a mathematical model from first principles; constructing a broader macro-model with the aim of providing falsifiable predictions at the potential cost of being wrong at the micro-level; or embarking on a major literature review in which average opinions are distilled around a set of pre-chosen topics.

Just think of honesty boxes in national parks, or the environmental volunteerism evidenced by Clean-Up Days. These examples bring into greater focus that humans belong to groups with standards and behavioral expectations to which they somehow feel bound. Although mainstream economics has no place for this dynamic, there seem to be such things as appeals to these “group ideals” to which many people truly respond, and which moreover can generate aggregate responses that significantly reduce the material costs of attaining good societal outcomes.

In order to encourage recycling, governments have begun to promote social norms of garbage separation, such as when they ask the public to separate their plastics from their vegetable garbage. This appeal to ideals is not part of the mainstream economic approach, but economists do recognize the problem that high monitoring costs would make it difficult to maintain a garbage market. In the case of international fishing, the mainstream economic observation is that no one owns the productive input, in this case the oceans.

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