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Economics of the Community Mechanism

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  • Masao Ogaki

    (Faculity of Economics, Keio University)

Abstract

1. This paper discusses the importance of the community mechanism that complements the market and power mechanisms in an economic system during an era of crisis. 2. The community mechanism is defined as a mechanism for resource allocation by which at least one person proposes voluntary cooperation, and the proposal is not rejected. 3. While this community mechanism can function alongside homo economicus in win?win situations, it can be further activated with social preferences for altruism and reciprocity and with norms or worldviews that encourage cooperation. 4. Other factors that relate to these include the character strengths that contribute to community and society known as virtues, with the concept of wellbeing related to virtues being known as eudaimonia

Suggested Citation

  • Masao Ogaki, 2023. "Economics of the Community Mechanism," Keio-IES Discussion Paper Series 2023-004, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2023-004
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    Cited by:

    1. Nobuyuki Hanaki & Takayuki Hoshino & Kohei Kubota & Fabrice Murtin & Masao Ogaki & Fumio Ohtake & Naoko Okuyama, 2022. "Comparing data gathered in an online and a laboratory experiment using the Trustlab platform," ISER Discussion Paper 1168, Institute of Social and Economic Research, Osaka University.
    2. Nobuyuki Hanaki & Takahiro Hoshino & Kohei Kubota & Fabrice Murtin & Masao Ogaki & Fumio Ohtake & Naoko Okuyama, 2022. "Comparing data gathered in an online and a laboratory experiment using the Trustlab platform," ISER Discussion Paper 1168r, Institute of Social and Economic Research, Osaka University, revised Jun 2022.

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    More about this item

    Keywords

    Community mechanism; Altruism; Reciprocity; Trust; Virtue; Eudaimonia;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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