IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/21192_6.html
   My bibliography  Save this book chapter

Socially embedded individuals

In: The Behavioral Economics of John Maynard Keynes

Author

Listed:
  • .

Abstract

Preferences are not predetermined fin isolation but rather develop in a social context. Humans care about fairness, conspicuous consumption, positional goods, and nominal and relative wages indicating social position. Money wages are an essential reference in the society we live in, affecting labor supply which is not exclusively determined by the balance of the marginal utility of leisure against the disutility of work and real wage (goods), respectively. For neoclassical economists trained to think in models of socially isolated individuals for whom money is simply a veil covering the real wages (the classical dichotomy), the nominal wage orientation merely is an "irrational" money illusion. However, the findings in Behavioral Economics confirm the importance of Keynes' observations on the relevance of money wages.

Suggested Citation

  • ., 2022. "Socially embedded individuals," Chapters, in: The Behavioral Economics of John Maynard Keynes, chapter 6, pages 113-124, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21192_6
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781802204896.00011.xml
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economics and Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:21192_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.