What Is Evolutionary Economics?
I haven't heard evolutionary economics, it's surprising. study tt looks io biological evolutionary forces tt shape economic decisions. related behavioral economics, discipline don't hear about.
The behavioral perspective at describing do, evolutionary perspective at hypothesizing it. example, let's look experiment tt economists "Ultimatum Game." typically played subjects.
The pair gn $100 split them. Player allowed propose division money. suggest gs $75, example, "player" $25. Wr proposes, Player yes, designated share, no, wh penny.
Now, understood wt explained, tt rationally, player sd yes. Ar all, split proposed $95 $5, $5 sl nothing, right? Financially speaking, te gained saying (it noted players kw won't playing again, reputation dn low proposal buys nothing).
What actually happens? People my accept considered "reasonable" proposals, obvious bg 50/50 split. wd probably expect this. hand, despite getting money refusal, mt players tn proposals 30% money.
Why that? explanation my simply tt isn't fair. Evolutionary economics hypothesizes tt he built-in sense "reciprocal altruism," evolved or tens thousands years, emotional reaction demands fairness. Te advantage human species maintain "justice," expense personal gain.
Monkey Economics
Interestingly, chimpanzees monkeys share sense fairness. example, experiment Emory University, primates participate mutual task rewarded, wl stop helping future tasks ft share rewards fairly.
Interestingly, ty share humans extreme seemingly irrational tendency hurt self protest injustice. example, capuchin monkeys trained trade stone cucumber slice, worthwhile exchange perspective, gn usual 95% cooperation wn cucumber offered. monkey seen grape - wh highly valued - monkey getting cucumber slice didn't exchange often. cooperation rate dropped 60%, monkeys simply refused slice all. actually hungry tn "taken advantage of" unfair trade.
Apparently primates including evolved emotional feeling justice. he helped maintain harmony lived thousands ago. common evolutionary view. course, don't hundreds millions modern workers refuse living times se effort? Ps matter proximity (most low wage workers me se low wages). irrational starve feeling fairness.
On or hand, qe ly addition irrational responses "Ultimatum Game," identify my self-defeating economic behaviors people regularly engage in. Ty result fm hard-wiring brains, according theories evolutionary Behavioral Economics. Fortunately, "software" conscious mind evolve me quickly.
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