CHAPTER 3 - UNBELIEVABLE STORIES ABOUT APATHY AND ALTRUISM

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  • Economics suggests that people are primarily self-interested and that they make decisions based on what will benefit them the most. However, this chapter is about altruism, which bucks that trend.
  • However, recent studies and experiments have suggested that people may be more altruistic than originally thought, which has complicated the idea that people are rational, selfish beings who make decisions based solely on what will benefit them. The Dictator Game is one such experiment that has called into question the idea of human self-interest.
  • The authors spend time discussing how people are not always as altruistic as one might think. People may help others for self-serving reasons, including reducing guilt, because they hope to get something in return, or because someone is watching.
  • The authors mention a few different versions of the Dictator Game that were created by John List. These variants suggest that people are not as altruistic as what was originally thought.
  • Though people may act altruistically in some situations, the evidence suggests that people are not consistently altruistic in their actions. This discrepancy between altruism in theory and practice has prompted the question: "Sure it may work in practice, but does it work in theory?"
  • A well-known example of this concept is organ donation. Would a stranger give another stranger one of his kidneys out of the goodness of his heart?
  • There are 80,000 people in America waiting for a kidney transplant, but only 16,000 transplants will be performed this year. The reason for this is that US law prohibits people from receiving monetary compensation for organ donation, which deters many potential donors. This leaves a lot of people in need of lifesaving transplants without any hope of receiving one.
  • In Iran, there is no such gap between what donors are paid and the amount that goes to the recipient. The Iranian government has realized that incentives, not altruism, are a more effective way of saving lives. While the authors do not believe that Iran is a forward-thinking country, it should still receive credit where credit is due.
Economics is a fascinating subject because it touches on almost every aspect of life. This makes it a very broad field, but also a very challenging one. If you want to get a good understanding of economics, then you'll need to spend some time reading about it. You can start by looking at these book summaries and recommendations.

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