‘Networked minds’ require fundamentally new kind of economics

See on Scoop.itTracking the Future

In their computer simulations of human evolution, scientists have discovered the emergence of the “homo socialis” with “other-regarding” preferences.

 

Economics has a beautiful body of theory. But does it describe real markets? Doubts have come up not only in the wake of the financial crisis, since financial crashes should not occur according to the then established theories. Since ages, economic theory is based on concepts such as efficient markets and the “homo economicus”, i.e. the assumption of competitively optimizing individuals and firms. It was believed that any behavior deviating from this would create disadvantages and, hence, be eliminated by natural selection. But experimental evidence from behavioral economics show that, on average, people behave more fairness-oriented and other-regarding than expected. A new theory by scientists from ETH Zurich now explains why. 

See on www.sciencedaily.com

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