An Economic Theory of Greed, Love, Groups, and Networks by Paul Frijters PDF

By Paul Frijters

Why are humans dependable? How do teams shape and the way do they convey incentives for his or her contributors to abide by means of workforce norms? earlier, economics has basically been in a position to in part solution those questions. during this groundbreaking paintings, Paul Frijters offers a brand new unified conception 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 conventional mainstream financial view. the result's an better view of human societies that however keeps the pursuit of self-interest at its center. This publication offers a digestible yet finished thought of our socioeconomic process, which condenses its monstrous complexity into simplified representations. the end result either illuminates humanity's historical past and indicates methods ahead for rules at the present time, in parts as varied as poverty aid and tax compliance.

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In other words, who regulates the regulator? Of course, no one person does. There is an implicit trust in the way that economists as a group monitor themselves and are trained, and it is this trust that underpins society’s trust in them as regulators. ” Environmental regulation The classic environmental policy question faced by society is what to do with entities that pollute some public space with their activities. Examples include industries that pump dangerous toxins into the air as by-products of what they produce, individuals who pollute the public space with their garbage, and countries that over-fish the oceans to the extent that global fish stocks are threatened, to the detriment of all other countries’ fishing industries.

In the original survey of American Economic Association (AEA) members in 1977 (Kearl, Pope, Whiting, and Wimmer 1979), some 97% of the responding economists agreed with the statement that “tariffs and import quotas usually reduce general economic welfare,” and only 16% of those who agreed did so with some provisions. Fifteen years later, a general survey (Alston, Kearl, and Vaughan 1992) of American economists, including those in business, academia, and government 6 Although not the central goal of domestic policy makers, foreign suppliers’ welfare is also higher in the absence of import restrictions.

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. Clearly, groups cannot just ask their members for anything, or else there would be no need for competition regulation. 9 Viscusi, Huber, and Bell (2011) note the existence and relevance of these social norms in the case of water-bottle recycling in the US, though they argue that their predictive effect is entirely captured by the policies that change the economic incentives.

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An Economic Theory of Greed, Love, Groups, and Networks by Paul Frijters

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