Humans have a more complex motivational structure and more capability to solve social dilemmas than posited in earlier rational-choice theory. Designing institutions to force (or nudge) entirely self-interested individuals to achieve better outcomes has been the major goal posited by policy analysts for governments to accomplish for much of the past half century. Extensive empirical research leads me to argue that instead, a core goal of public policy should be to facilitate the development of institutions that bring out the best in humans.
Elinor OstromRelated topics
best capability century complex core designing development early force goal half major nudge past policy public research should social solve structure theory humansRelated quotes
All the real money in investment will have to be made-as most of it has been in the past- not out of buying and selling but out of owning and holding securities, receiving interests and dividends therein, and benefiting from their long-term increases in value. Hence stockholder's major energies and wisdom as investors should be directed toward assuring themselves of the best operating results from their corporations. This in turn means assuring themselves of fully honest and competent managements.
Benjamin Graham
Not only did waging war against Hitler fail to save the Jews, it may be that the war itself brought on the Final Solution of genocide. This is not to remove the responsibility from Hitler and the Nazis, but there is much evidence that Germany's anti-Semitic actions, cruel as they were, would not have turned to mass murder were it not for the psychic distortions of war, acting on already distorted minds. Hitler's early aim was forced emigration, not extermination, but the frenzy of it created an atmosphere in which the policy turned to genocide.
Howard Zinn
In view of the importance of philanthropy in our society, it is surprising that so little attention has been given to it by economic or social theorists. In economic theory, especially, the subject is almost completely ignored. This is not, I think, because economists regard mankind as basically selfish or even because economic man is supposed to act only in his self-interest; it is rather because economics has essentially grown up around the phenomenon of exchange and its theoretical structure rests heavily on this process.
Kenneth Boulding
Haavelmo was the first to recognize the capacity of economic models to guide policies. This paper describes some of the barriers that Haavelmo's ideas have had (and still have) to overcome, and lays out a logical framework that has evolved from Haavelmo's insight and matured into a coherent and comprehensive account of the relationships between theory, data and policy questions. The mathematical tools that emerge from this framework now enable investigators to answer complex policy and counterfactual questions using simple routines, some by mere inspection of the model's structure.
Judea Pearl
The emergence of computer technology in World War II and its rapidly growing power in the second half of this century made it possible to deal with increasingly complex problems, some of which began to resemble the notion of organized complexity. Initially, it was the common belief of many scientists that the level of complexity we can handle is basically a matter of the level of computational power at our disposal. Later, in the early 1960s, this naive belief was replaced with a more realistic outlook.
George Klir
