O'Reilly logo

Behavioral Economics For Dummies® by Morris Altman, PhD

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 13

The Good Economy: How Ethical Behavior Can Grow the Economy

In This Chapter

arrow Defining ethical behavior

arrow Uncovering the conventional assumptions about ethical production

arrow Introducing a behavioral understanding of ethical production

arrow Examining the importance of the ethical consumer for ethical production

A basic premise of the conventional economic wisdom is that rational people should be and are exclusively motivated by material self-interest. The conventional model pays no attention to nonmonetary factors. Market forces squash any other types of behavior. Also, ethical behavior is not considered to be consistent with rationality.

An important finding of behavioral economics is that consumers, workers, managers, and CEOs persistently engage in ethical behavior without being obligated to do so by the laws of supply and demand. In other words, ethical behavior exists and can be quite important — contrary to what most conventional economists argue.

In this chapter, I explain how rational individuals can and do engage in ethical behavior. In some cases, ethical behavior involves ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required