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The Economic Approach to Human Behavior
Since his pioneering application of economic analysis to racial discrimination, Gary S. Becker has shown that an economic approach can provide a unified framework for understanding all human behavior. In a highly readable selection of essays Becker applies this approach to various aspects of human activity, including social interactions; crime and punishment; marriage, fertility, and the family; and "irrational" behavior.
"Becker's highly regarded work in economics is most notable in the imaginative application of 'the economic approach' to a surprising breadth of human activity. Becker's essays over the years have inevitably inspired a surge of research activity in testimony to the richness of his insights into human activities lying 'outside' the traditionally conceived economic markets. Perhaps no economist in our time has contributed more to expanding the area of interest to economists than Becker, and a number of these thought-provoking essays are collected in this book."— Choice
Gary Becker was awarded the Nobel Prize in Economic Science in 1992.
"Becker's highly regarded work in economics is most notable in the imaginative application of 'the economic approach' to a surprising breadth of human activity. Becker's essays over the years have inevitably inspired a surge of research activity in testimony to the richness of his insights into human activities lying 'outside' the traditionally conceived economic markets. Perhaps no economist in our time has contributed more to expanding the area of interest to economists than Becker, and a number of these thought-provoking essays are collected in this book."— Choice
Gary Becker was awarded the Nobel Prize in Economic Science in 1992.
320 pages, Paperback
First published December 31, 1976
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About the author
Gary S. Becker
49 books105 followersAmerican economist. He is a professor of economics and sociology at the University of Chicago and a professor at the Booth School of Business. He has important contributions to the family economics branch within the economics. Neoclassical analysis of family within the family economics is also called new home economics . He was awarded the Nobel Memorial Prize in Economic Sciences in 1992 and received the United States Presidential Medal of Freedom in 2007.He is currently a Rose-Marie and Jack R. Anderson senior fellow at Stanford University's Hoover Institution.
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March 7, 2008An economic look at human behaviour... even though we were only supposed to read "selected chapters" I couldn't help myself - I read the whole thing. It was fascinating in an amusing, reductionist sort of way.
course-readings
July 3, 2020Only read Chapter 1 (intro) and Chapter 13 (altruism, egoism and genetic fitness: economics and sociobiology).
Classic neolib book - ch 13 was an interesting way of framing the fundamental problem of sociobiology (how can altruism be naturally selected?) - but at the same time, it's very reductionist & relies on ideas of survivability and reproduction as a "unit"
Intro
The various definitions of economics from a neolib perspective - allocation of material goods to satisfy wants, market sector, allocation of scarce means to satisfy competing ends. Author recognises the limitations of these (1 - most economic activity isn't material anymore and 2 - the other definitions are far too general), instead approaching it with a definitive "economic" approach of utility maximization and economies of scale. He recognises that economists take wants to be fixed across cultures, times, ages, wealthy/poor, etc.
When behaviour can't be explained in "utility maximization" maxims (eg: being satisfied with what you have, being irrational, preferences/shifts in values), the economic framework postulates the existence of "costs" that exceed the costs required for increased consumption. for eg, you could live forever, but the cost required to do this (in taking care of yourself, investing in meds, exercising, etc) far exceeds that of dying (interesting implications using this definition for things like suicide - doesn't every death become one?)
While this is an obvious problem, it's not a problem for the neolib - the important theorems have been derived from the approach, and assuming stable preferences, we can make predictions. These decisions aren't necessarily conscious - they're programmed in biologically. This is extended to things like family size, corporate responsibility, advertising, cultural changes. Interesting incorporation was the Heisenberg uncertainty principle - an observer of a science will change the result: this is doubly so for social sciences, where the observer is also a participant. Because values shift arbitrarily, demand will pop up for things like research in niche fields like gender studies or whatever.
All human behaviour is viewed in this utility maximization framework.
Chapter 13
This chapter was an attempt to explain altruism (forgoing self consumption to increase the consumption of others) through a neoliberal lens. The fundamental problem of sociobiology - "how can altruism, which by definition reduces personal fitness, possibly evolve by natural selection?"
Becker uses the concept of kin selection to explain this, using convoluted algebraic reasoning. Really, it boils down to - if A is a rich person, he can choose to keep x money, or give B x money. if x gives B a greater increase in utility than A, the chances of survival of A increase more (i.e prestige, reputation, likelihood that they'll look out for As kids incase something happens).
Even if B was completely egotistic, it is in his best interest to act altruistic, because once A sees that this guy has money or is acting selfishly, he will reduce the amount of money he gives B (reduces his social capital). Also, if A gives B money, B is less likely to riot and damage As stuff, which is actually an increase in As income. In short, altruism is naturally selected for in how it causes the behaviour of others to change towards you/your genes, with genes being broadly defined as any overlap in genetic material.
While the level of simplification, assumption, denial of human experience and determinism required to believe this is tantamount to a near suspension of reality, it's definitely something fresh I haven't heard before at this level of detail. Interesting theory, yeah may have a few behavioural applications here and there, but not much else.
Classic neolib book - ch 13 was an interesting way of framing the fundamental problem of sociobiology (how can altruism be naturally selected?) - but at the same time, it's very reductionist & relies on ideas of survivability and reproduction as a "unit"
Intro
The various definitions of economics from a neolib perspective - allocation of material goods to satisfy wants, market sector, allocation of scarce means to satisfy competing ends. Author recognises the limitations of these (1 - most economic activity isn't material anymore and 2 - the other definitions are far too general), instead approaching it with a definitive "economic" approach of utility maximization and economies of scale. He recognises that economists take wants to be fixed across cultures, times, ages, wealthy/poor, etc.
When behaviour can't be explained in "utility maximization" maxims (eg: being satisfied with what you have, being irrational, preferences/shifts in values), the economic framework postulates the existence of "costs" that exceed the costs required for increased consumption. for eg, you could live forever, but the cost required to do this (in taking care of yourself, investing in meds, exercising, etc) far exceeds that of dying (interesting implications using this definition for things like suicide - doesn't every death become one?)
While this is an obvious problem, it's not a problem for the neolib - the important theorems have been derived from the approach, and assuming stable preferences, we can make predictions. These decisions aren't necessarily conscious - they're programmed in biologically. This is extended to things like family size, corporate responsibility, advertising, cultural changes. Interesting incorporation was the Heisenberg uncertainty principle - an observer of a science will change the result: this is doubly so for social sciences, where the observer is also a participant. Because values shift arbitrarily, demand will pop up for things like research in niche fields like gender studies or whatever.
All human behaviour is viewed in this utility maximization framework.
Chapter 13
This chapter was an attempt to explain altruism (forgoing self consumption to increase the consumption of others) through a neoliberal lens. The fundamental problem of sociobiology - "how can altruism, which by definition reduces personal fitness, possibly evolve by natural selection?"
Becker uses the concept of kin selection to explain this, using convoluted algebraic reasoning. Really, it boils down to - if A is a rich person, he can choose to keep x money, or give B x money. if x gives B a greater increase in utility than A, the chances of survival of A increase more (i.e prestige, reputation, likelihood that they'll look out for As kids incase something happens).
Even if B was completely egotistic, it is in his best interest to act altruistic, because once A sees that this guy has money or is acting selfishly, he will reduce the amount of money he gives B (reduces his social capital). Also, if A gives B money, B is less likely to riot and damage As stuff, which is actually an increase in As income. In short, altruism is naturally selected for in how it causes the behaviour of others to change towards you/your genes, with genes being broadly defined as any overlap in genetic material.
While the level of simplification, assumption, denial of human experience and determinism required to believe this is tantamount to a near suspension of reality, it's definitely something fresh I haven't heard before at this level of detail. Interesting theory, yeah may have a few behavioural applications here and there, but not much else.
January 15, 2018
Až při čtení mi došlo, že jeho Beckerovu teorii a myšlenky znám, jelikož za těch... skoro 50 let se už staly součástí ekonomických učebnic. Ekonomický; racionální přístup v chování a výběru mě baví.
Nicméně studie obsahují i vzorce, matice a grafy a já zrovna neměla čas se nad nimi blíže zamýšlet a chápat logiku argumentů z nich, takže jsem se procházela pouze po textu. Ten je stravitelný a pochopitelný. Jeho redukcionismus mi přijde humorný, obzvlášť když lidské dítě přirovná k trvanlivému (třikrát sláva medicínskému pokroku! :-D) spotřebnímu zboží.
Studie k altruismu jsou podnětné, i když člověk ví o psychologických a sociobiologických výzkumech. Zmínky ohledně pozici ženy, jejích ušlých ziscích při výchově dítěte aj., si asi v budoucnu ještě jednou projedu :-)
Nicméně studie obsahují i vzorce, matice a grafy a já zrovna neměla čas se nad nimi blíže zamýšlet a chápat logiku argumentů z nich, takže jsem se procházela pouze po textu. Ten je stravitelný a pochopitelný. Jeho redukcionismus mi přijde humorný, obzvlášť když lidské dítě přirovná k trvanlivému (třikrát sláva medicínskému pokroku! :-D) spotřebnímu zboží.
Studie k altruismu jsou podnětné, i když člověk ví o psychologických a sociobiologických výzkumech. Zmínky ohledně pozici ženy, jejích ušlých ziscích při výchově dítěte aj., si asi v budoucnu ještě jednou projedu :-)
to-keep-reference
October 23, 2018Becker es el arquitecto de la Teoría de la Elección Racional (TER).
La idea de Justicia
La idea de Justicia
December 8, 2023
Loaded with a lot of his Nobel winning ideas and creating a new "wing" in economic study.
And very interesting.
And very interesting.
January 27, 2016
Gary Becker argues that economic approach is unique due to its universal applicability to the analysis of various types of human behavior. The economic approach is not limited to the analysis of human behavior concerning material goods, it also can be successfully applied to the analysis of social behavior, emotions, and bilateral relationships. To prove his claim and demonstrate results that can be obtained from analyzing different issues, the author looks at several problems through the lens of economic approach.
Becker claims that anything can be explained by economics. He sees individuals living in a market where anything can be quantified in terms of obtainable maximum benefit. Human beings are seen as rational actors that strive to maximize their benefits. This desire guides their social behavior. Even charity has its own utility, otherwise, individuals would not behave in such a way.
Becker claims that anything can be explained by economics. He sees individuals living in a market where anything can be quantified in terms of obtainable maximum benefit. Human beings are seen as rational actors that strive to maximize their benefits. This desire guides their social behavior. Even charity has its own utility, otherwise, individuals would not behave in such a way.
Displaying 1 - 6 of 6 reviews