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

By Professor Paul Frijters, Dr Gigi Foster

Why are humans dependable? How do teams shape and the way do they bring about incentives for his or her contributors to abide through staff norms? beforehand, economics has simply been capable of in part resolution those questions. during this groundbreaking paintings, Paul Frijters offers a brand new unified thought of human behaviour. to take action, he comprises entire but tractable definitions of affection and tool, 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 center. This ebook offers a digestible yet accomplished conception of our socioeconomic approach, which condenses its colossal complexity into simplified representations. the end result either illuminates humanity's background and indicates methods ahead for guidelines this day, in components as assorted as poverty relief and tax compliance.

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Surveys of economists paint the same picture: in Kearl et al. 5% of the economists in the international survey reported by Frey et al. (1984) agreed with the same statement, and only 12% of Australian economists (most of whom were educated in the US and Europe) in 2011 disagreed with this statement. 14 Introduction and preview The view proffered in this book is again identical to the mainstream economics view, but I will point out some of the issues hidden from this mainstream view. As with trade barriers, those who lobby in favor of continued unregulated private monopolies invariably argue that the existence of these monopolies somehow benefits society as a whole and not just themselves, which is puzzling because such pretense “should” (from the economists’ viewpoint) be transparent, hence pointless, and therefore not a behavior that we observe.

For some, such as the chief economists of commercial banks, the group whose welfare they have in mind is not society as a whole, but the company or organization for which they work. For others, such as retired academics writing their last books, there are few other goals but the pursuit of truth. 28 Introduction and preview A singularly problematic aspect of this self-image is that truthobsession and do-gooder attitudes do not feature in the models we economists have of the rest of society. If the economist is such a noble person, or at least not someone only motivated by the income he earns by being an economist, then what accounts for his commitment to truth-seeking and welfare maximization?

In short, it does not fit the psychology and widespread use of sacrifices, though it may well be an apt description of the economic role of sacrifices in particular religious groups. What makes symbolic expenses especially intriguing is that one cannot always say for sure which expenses are really symbolic, and hence just how widespread symbolic expenses really are. One reason for this is that one cannot argue about the extent to which a current expense is symbolic without upsetting those who make the expense.

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