- List of Figures
- List of Tables
- Notes on Contributors
- Adam Smith and the Study of Ethics in a Commercial Society
- Virtue and Economics, Horse and Cart
- With All Due Respect: A Kantian Approach to Economics
- Ethical Pluralism in Economics
- Economic Ethics and the Capability Approach
- Evolution and Moral Motivation in Economics
- Morality as a Complex Adaptive System: Rethinking Hayek’s Social Ethics
- On the Evolution of Ethics, Rationality, and Economic Behavior
- Human Ethicality: Evidence and Insights from Behavioral Economics
- Ethics <i>and</i> Economics: A Complex Systems Approach
- Economics and Ethics within the Austrian School of Economics
- Feminist Economics and Ethics
- Economy and Culture: The Importance of Sense-Making
- Humane Markets: The Classical Tradition of Political Economy
- Capitalism and Democracy: Allies, Rivals, or Strangers?
- The Moral Status of Profit
- The Ethics of Money and Finance
- Ethics <i>and, in</i>, and <i>for</i> Labor Markets
- Cost-Benefit Analysis and Social Welfare Functions
- The Normative Economics of Social Risk
- The Ethics of Making Risky Decisions for Others
- The Tragedy of Economics: On the Nature of Economic Harm and the Responsibilities of Economists
- Economics, Ethics, and Health Insurance
- Deontological Morality and Economic Analysis of Law
- The Ethics and Economics of Ecological Justice
- Civil Rights, Employment, and Race
- Lessons from Economics
Abstract and Keywords
The neoclassical view of human behavior emphasizes the rational pursuit of self-interest, aptly described as Max-U by Deirdre McCloskey. Most economists today are not aware that leading thinkers in the classical period had a very different view of decision-making. In the classical view most behavior is driven by people doing what they think they are supposed to do under various circumstances. This chapter proposes a framework that captures the spirit of the classical approach to decision-making. This framework is then used to explore how behavior that is better described by Max-U likely evolved in response to the continuing development of the market economy and the evolution of prevailing moral beliefs. Employing ideas from cognitive science, this exercise sheds new light on several persistent puzzles in experimental economics, most notably several shortcomings of expected utility theory. It also explains how new habits of mind increased both creativity and individuality.
David C. Rose is Professor of Economics at the University of Missouri-St. Louis.
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