Self-interest and social preferences
5 important questions on Self-interest and social preferences
Defense of cosumerism (self-interest)
·Normative grounds: self-interest leads to socially good outcomes
Two persons you divide yourself in
- agent
Das Smith Problem (Etzioni)
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Prisoner's dilemma, 2 interesting characteristics (Sen)
·Need for enforcement
Coordination if individual and common goals are not perfectly aligned and if information is imperfect
·Reputation mechanism
·Implicit (relational) contracts: depends on trust between both parties.
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