2008•Economic SurveyRequires access

Endogenous Model for Altruism Preference and Its Economic Explanation

Pingxin Wang

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Abstract

To deal with the challenges of altruistic behavior to the human nature of self-interest,economics has to make the preferences endogenetic.The authors first construct a model for endogenetic altruism preferences and makes human behaviors unified in the model of maximum utility and have inherently consistent laws and pridictability and then interpret the rationality of the model for endogenetic altruism preferences.In the aothors' opinion,unlike self-interest behaviors,the doer gets utility from altruistic behaviors themselves,not from the consequence of altruistic behaviors;the altruists can beat the self-interest through the whole compensation mechanism for survival adaption and the altruistic punishment provides powerful guarantee for human beings to solve the prisoner's dilemma.

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What this paper is about

To deal with the challenges of altruistic behavior to the human nature of self-interest,economics has to make the preferences endogenetic.The authors first construct a model for endogenetic altruism preferences and makes human behaviors unified in the model of maximum utility and have inherently consistent laws and pridictability and then interpret the rationality of the model for endogenetic altruism preferences.In the aothors' opinion,unlike self-interest behaviors,the doer gets utility from altruistic behaviors themselves,not from the consequence of altruistic behaviors;the altruists can beat the self-interest through the whole compensation mechanism for survival adaption and the altruistic punishment provides powerful guarantee for human beings to solve the prisoner's dilemma.

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Available abstract

To deal with the challenges of altruistic behavior to the human nature of self-interest,economics has to make the preferences endogenetic.The authors first construct a model for endogenetic altruism preferences and makes human behaviors unified in the model of maximum utility and have inherently consistent laws and pridictability and then interpret the rationality of the model for endogenetic altruism preferences.In the aothors' opinion,unlike self-interest behaviors,the doer gets utility from altruistic behaviors themselves,not from the consequence of altruistic behaviors;the altruists can beat the self-interest through the whole compensation mechanism for survival adaption and the altruistic punishment provides powerful guarantee for human beings to solve the prisoner's dilemma.

Key concepts: Altruism (biology), Economics, Dilemma, Rationality, Prisoner's dilemma, Microeconomics, Preference, Punishment (psychology)

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