James Surowiecki: Behavioral Econ
on Thursday, October 28, 2021James Surowiecki Money Quote saying smart economists know that we’ll pay handsomely to punish those who fail to give to the common good. James Surowiecki said:
“Behavioral economists have shown that a sizable percentage of people are willing to pay real money to punish people who are taking from a common pot but not contributing to it. Just to insure that shirkers get what they deserve, we are prepared to make ourselves poorer” — James Surowiecki
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In this quote, James Surowiecki is summarizing a finding of behavioral economists. He states that research has shown many people are willing to pay out of their own pockets to punish or sanction those who benefit from shared resources (like a “common pot”) without contributing to them (“shirkers”).
Surowiecki then notes that people are even prepared or willing to make themselves financially poorer just to ensure those who don’t pull their weight (“shirkers”) receive their comeuppance. In essence, the quote suggests that behavioral studies have revealed people’s strong desire to see fairness and for freeloaders to face consequences, even if it costs themselves something in the process.