Contemporary economic findings with regards to consumer and firm preferences show
that narrow self-interest and profit maximization do not consistently predict
experimental outcomes (Camerer, Loewenstein, & Rabin, 2004). Social and endogenous
preferences and efficiency wages do not fit neatly into the traditional view that greater
income creates greater consumption; which equals increased utility, eventually creating
overall individual and social well-being (Bowles, 2004). If the pursuit of narrow selfinterest and profit maximization does not adequately reflect real world consumer and
firm behavior, then does the equation of increased consumption leading to increased
well-being hold any weight? What does the emerging field of subjective well-being have
to say about the success of this equation?
Contemporary economic findings with regards to consumer and firm preferences showthat narrow self-interest and profit maximization do not consistently predictexperimental outcomes (Camerer, Loewenstein, & Rabin, 2004). Social and endogenouspreferences and efficiency wages do not fit neatly into the traditional view that greaterincome creates greater consumption; which equals increased utility, eventually creatingoverall individual and social well-being (Bowles, 2004). If the pursuit of narrow selfinterest and profit maximization does not adequately reflect real world consumer andfirm behavior, then does the equation of increased consumption leading to increasedwell-being hold any weight? What does the emerging field of subjective well-being haveto say about the success of this equation?
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