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Full-Text Articles in Social and Behavioral Sciences
Banks And Trust In Adam Smith, Maria Paganelli
Banks And Trust In Adam Smith, Maria Paganelli
Maria Pia Paganelli
One can see banking as a mediating institution based on trust. In a small pre-commercial society, trust is personal and credit markets quite limited and based on personal knowledge. In larger commercial societies, credit markets tend to expand, but this is not possible if they are based only on personal trust. This is because of the difficulties of getting to know every customer in a large and impersonal society. Institutional trust needs to supplement personal trust. One trusts a bank and/ or the banking system more than the individual teller in the bank, and the bank trusts credit scoring and …
Whose Money Is It Anyway? Ingroups And Distributive Behavior, David Chavanne, Kevin Mccabe, Maria Paganelli
Whose Money Is It Anyway? Ingroups And Distributive Behavior, David Chavanne, Kevin Mccabe, Maria Paganelli
Maria Pia Paganelli
Price theory is often used to explain reactions to rebates and subsidies that are meant to encourage charitable giving. This paper describes the results of a laboratory experiment that tests standard price theory alongside an alternative perspective based on research on the perceptions and behavior of ingroups. Using a modified dictator game, we find that rebates that decrease the price of giving only increase amounts given when they are exogenously funded by the experimenters. When rebates are funded by members of one’s group, the decreased price of giving does not lead to increased amounts given. The result suggests that the …
The Adam Smith Problem In Reverse: Self-Interest In Adam Smith’S Wealth Of Nations And Theory Of Moral Sentiments, Maria Paganelli
The Adam Smith Problem In Reverse: Self-Interest In Adam Smith’S Wealth Of Nations And Theory Of Moral Sentiments, Maria Paganelli
Maria Pia Paganelli
In identifying the tensions between the two treatises that Adam Smith (1723-90) published during his lifetime' - The Theory of Moral Sentiments' (1759) and 'The Wealth of Nations(1776) - 'it can be seen that the first is more favorable to self-interest. The author presents the effects of self-interest under ideal conditions, examines some of the abuses of self-interest, and describes how Smith deals with abuses of self-interest. Smith's first, lesser known treatise paints a picture of self-interest that more closely resembles that portrayed in modern economics: both the individual and society are better off when individuals pursue self-interest. In fact, …