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A humanistic theory of economic behavior

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  • Beaudreau, Bernard C.

Abstract

The past two decades have witnessed a growing interest in the humanistic approach to economics. In general, this has manifested itself in two ways, namely the development of humanistic models of behavior per se and secondly, in the form of addenda to the core utility model (CUM) such as identity, reciprocity, and warm glows. While promising, each suffers from major shortcomings—the former from its lack of a formal structure (mostly descriptive) and the latter from the lack of a “general” theory of behavior. This paper addresses these issues. Specifically, it presents a unifying humanistic theory of economic behavior which is consistent with basic humanistic principles (e.g. self-realization) and which is amenable to the study of economic issues. Agents are assumed to have a series of needs/identities/motives (NIMs) which they seek to fulfill. Moreover, each one of these needs corresponds to a specific set of neural mechanisms (frontal lobe, parietal lobe, etc.). Goods/services/activities are defined in hedonic terms and are assumed to address one or more NIMs. The corresponding optimization problem is presented and solved. The results are then used to rationalize various phenomena, including the Easterlin Paradox, Set-Point Theory, the Voter Paradox, among others.

Suggested Citation

  • Beaudreau, Bernard C., 2012. "A humanistic theory of economic behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 222-234.
    • Handle: RePEc:eee:soceco:v:41:y:2012:i:2:p:222-234
    DOI: 10.1016/j.socec.2011.12.002
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    Cited by:

    1. Burhan, Nik Ahmad Sufian & Mohamad, Mohd Rosli & Kurniawan, Yohan & Sidek, Abdul Halim, 2014. "National Intelligence, Basic Human Needs, and Their Effect on Economic Growth," MPRA Paper 77267, University Library of Munich, Germany.
    2. Domenec Melé, 2016. "Understanding Humanistic Management," Humanistic Management Journal, Springer, vol. 1(1), pages 33-55, September.
    3. Anna Horodecka, 2015. "The Changing Face of Economics? Ethical Issues in Contemporary Economic Schools as a Consequence of Changes in the Concept of Human Nature," Annales. Ethics in Economic Life, University of Lodz, Faculty of Economics and Sociology, vol. 18(4), pages 55-71, December.
    4. Eva Pechočiaková Svitačová, 2021. "The Renaissance of the Main Goal of Economy and the Humanistic Approach to Human Resources - Prerequisites for the Humanization of Contemporary Economy [Renesancia hlavného cieľa ekonomiky a humánn," E-LOGOS, Prague University of Economics and Business, vol. 2021(1), pages 60-68.

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    More about this item

    Keywords

    Utility theory; Humanistic psychology; Self-actualization;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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