A humanistic theory of economic behavior
The past two decades have witnessed a growing interest in the humanistic approach to economics. In general, this has manifested itself in two ways, namely the development of humanistic models of behavior per se and secondly, in the form of addenda to the core utility model (CUM) such as identity, reciprocity, and warm glows. While promising, each suffers from major shortcomings—the former from its lack of a formal structure (mostly descriptive) and the latter from the lack of a “general” theory of behavior. This paper addresses these issues. Specifically, it presents a unifying humanistic theory of economic behavior which is consistent with basic humanistic principles (e.g. self-realization) and which is amenable to the study of economic issues. Agents are assumed to have a series of needs/identities/motives (NIMs) which they seek to fulfill. Moreover, each one of these needs corresponds to a specific set of neural mechanisms (frontal lobe, parietal lobe, etc.). Goods/services/activities are defined in hedonic terms and are assumed to address one or more NIMs. The corresponding optimization problem is presented and solved. The results are then used to rationalize various phenomena, including the Easterlin Paradox, Set-Point Theory, the Voter Paradox, among others.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 41 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/620175|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fehr, Ernst & Schmidt, Klaus M., .
"A theory of fairness, competition, and cooperation,"
Chapters in Economics,
University of Munich, Department of Economics.
- Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
- Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers.
- Andrei Shleifer & Robert W. Vishny, 1996.
"A Survey of Corporate Governance,"
NBER Working Papers
5554, National Bureau of Economic Research, Inc.
- Andrei Shleifer & Robert W. Vishny, 1995. "A Survey of Corporate Governance," Harvard Institute of Economic Research Working Papers 1741, Harvard - Institute of Economic Research.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- George A. Akerlof, 2007. "The Missing Motivation in Macroeconomics," American Economic Review, American Economic Association, vol. 97(1), pages 5-36, March.
- Brueckner, Jan K. & Lee, Kangoh, 1989. "Club theory with a peer-group effect," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 399-420, August.
- Beaudreau, Bernard C., 2006. "Identity, entropy and culture," Journal of Economic Psychology, Elsevier, vol. 27(2), pages 205-223, April.
- Betsey Stevenson & Justin Wolfers, 2009.
"The Paradox of Declining Female Happiness,"
NBER Working Papers
14969, National Bureau of Economic Research, Inc.
- Betsey Stevenson & Justin Wolfers, 2009. "The paradox of declining female happiness," Working Paper Series 2009-11, Federal Reserve Bank of San Francisco.
- Stevenson, Betsey & Wolfers, Justin, 2009. "The Paradox of Declining Female Happiness," IZA Discussion Papers 4200, Institute for the Study of Labor (IZA).
- Stevenson, Betsey & Wolfers, Justin, 2009. "The Paradox of Declining Female Happiness," CEPR Discussion Papers 7311, C.E.P.R. Discussion Papers.
- Bentham, Jeremy, 1781. "An Introduction to the Principles of Morals and Legislation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number bentham1781.
- Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
- de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 110-33, February.
- Thorstein Veblen, 1909. "The Limitations of Marginal Utility," Journal of Political Economy, University of Chicago Press, vol. 17, pages 620.
- Bruno S. Frey & Alois Stutzer (ed.), 2007. "Economics and Psychology: A Promising New Cross-Disciplinary Field," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062631, December.
- Frank, Robert H, 1987. "If Homo Economicus Could Choose His Own Utility Function, Would He Want One with a Conscience?," American Economic Review, American Economic Association, vol. 77(4), pages 593-604, September.
- D. Wade Hands, 2010. "Economics, psychology and the history of consumer choice theory," Cambridge Journal of Economics, Oxford University Press, vol. 34(4), pages 633-648.
- Drakopoulos, S A, 1994. " Hierarchical Choice in Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 8(2), pages 133-53, June.
- Veblen, Thorstein, 1909. "The Limitations of Marginal Utility," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 17.
- Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-52, September.
- Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, vol. 10(1), pages 97-106, August.
- U. Witt, 2005. "From Sensory to Positivist Utilitarianism and Back -- The Rehabilitation of Naturalistic Conjectures in the Theory of Demand," Papers on Economics and Evolution 2005-07, Philipps University Marburg, Department of Geography.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-98, June.
When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:41:y:2012:i:2:p:222-234. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.