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Financial disasters--and stories of the greedy bankers who precipitated them--seem to underscore the idea that self-interest will always trump concerns for the greater good. Indeed, this idea is supported by the prevailing theories in both economics and evolutionary biology. But is it valid?
In What Price the Moral High Ground?, economist and social critic Robert Frank challenges the notion that doing well is accomplished only at the expense of doing good. Frank explores exciting new work in economics, psychology, and biology to argue that honest individuals often succeed, even in highly competitive environments, because their commitment to principle makes them more attractive as trading partners.
Drawing on research he has conducted and published over the past decade, Frank challenges the familiar homo economicus stereotype by describing how people create bonds that sustain cooperation in one-shot prisoner's dilemmas. He goes on to describe how people often choose modestly paid positions in the public and nonprofit sectors over comparable, higher-paying jobs in the for-profit sector; how studying economics appears to inhibit cooperation; how social norms often deter opportunistic behavior; how a given charitable organization manages to appeal to donors with seemingly incompatible motives; how concerns about status and fairness affect salaries in organizations; and how socially responsible firms often prosper despite the higher costs associated with their business practices.
Frank's arguments have important implications for the conduct of leaders in private as well as public life. Tossing aside the model of the self-interested homo economicus, Frank provides a tool for understanding how to better structure organizations, public policies, and even our own lives.
- Sales Rank: #366561 in Books
- Published on: 2010-04-04
- Original language: English
- Number of items: 1
- Dimensions: 8.40" h x .70" w x 5.50" l, .51 pounds
- Binding: Paperback
- 224 pages
Review
"This book is short, accessible and thought-provoking. . . . Frank draws heavily from game theory and evolutionary biology to explain why do-gooders work for less and firms that don't squeeze suppliers and cheat customers profit over the long run."--Washington Post
"Moral behavior is not irrational . . . Frank insists. The challenge is to define self-interest in a manner capacious enough to accommodate the real motives for people's choices. Frank does this with a mixture of Darwinian science, psychology, and flexible common sense."--Laura Secor, Boston Globe
"What Price the Moral High Ground? Is wide-ranging and well-written."--John J. DiIulio, Jr., The Weekly Standard
"[Frank's] vision is one that allows people to strive to meet their chosen goals and promotes the common good in an ordered cosmos--which is exactly where many of us want to live."--Merrill Matthews, Business Economics
From the Inside Flap
"I loved this book. It makes sense of key economic behaviors not well explained by other models, through a combination of theory, examples, and clever experiments. Clearly written, it will be easily understood not only by economists but also noneconomists. Vintage Frank."--Shlomo Maital, author of Executive Economics
"Robert Frank takes us beyond the economic notion of rationality, pointing to the norms that guide people, their social status, and character, and make them seem nicer than economic theory would have them be. He adds an interesting twist to the story by showing that those who are subjected to theory may actually be less nice, less cooperative than others."--Arjo Klamer, editor of Conversations with Economists and The Value of Culture
From the Back Cover
"I loved this book. It makes sense of key economic behaviors not well explained by other models, through a combination of theory, examples, and clever experiments. Clearly written, it will be easily understood not only by economists but also noneconomists. Vintage Frank."--Shlomo Maital, author of Executive Economics
"Robert Frank takes us beyond the economic notion of rationality, pointing to the norms that guide people, their social status, and character, and make them seem nicer than economic theory would have them be. He adds an interesting twist to the story by showing that those who are subjected to theory may actually be less nice, less cooperative than others."--Arjo Klamer, editor of Conversations with Economists and The Value of Culture
Most helpful customer reviews
10 of 10 people found the following review helpful.
Some snapshots of social preference research
By JJ vd Weele
Economist Robert Frank is a productive man who has the laudable habit of explaining insights of academic economics in understandable words for the general public. This book treats the spontaneous emergence of cooperative behavior amongst human beings, a fascinating topic which has been the focus of much research lately. Unfortunately, it is not one of Frank's best books. As a rather unbalanced collection of essays, it does not do justice to the sizeable literature on social preferences and cooperation.
The book consists of three parts. The first looks for the evolutionary roots of cooperative behavior. The main argument is that cooperation pays because cooperators are able to recognize each other in the population, so that they are not taken advantage of by opportunistic types. In the third chapter Frank builds an interesting evolutionary argument for the role of emotions. The second part discusses the social and economic relevance of cooperative tendencies. How much money are people willing to forego to satisfy their social preferences? The last part investigates how cooperative inclinations can be fostered. It investigates the impact of social norms on behavior, and the influence of the pervasive model of homo economicus.
The book is easy to read, written in an accessible style. Unfortunately, the book is not a comprehensive summary of research on cooperation. Rather, it takes a few snapshots of this research on which it elaborates. Perhaps not surprisingly, these snapshots are often the research papers of Frank himself. This is good for those who are interested in methodology: Frank has done his best to highlight controversial issues, as well as the theoretical tradeoffs that modelers of human behavior have to confront. However, it is not clear why the general reader would want to know the details of academic discussions about whether A's or B's model best explains a rather specific phenomenon. At the same time the book does not mention entire research agendas on trust and cooperation that have been pursued in the last decade. If one wants a book that does a more complete job you may want to look to "The Company of Strangers" by Paul Seabright.
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