Ten years ago, Robert Frank, Thomas Gilovich and Dennis Regan
published "Does Studying Economics Inhibit Cooperation?,"
a famous paper in the Journal of Economic Perspectives.
They surveyed previous work on the topic, did some of their
own, and concluded that, yes, the likelihood that people would
make selfish choices increased with their exposure to economics.
Confronted with various social dilemmas, economists who had
been schooled in self-interest were less likely than others
sampled to do the generous or even the ethical thing.
Economists and their students bargained tougher, shirked
more on voluntary payments and finked on their fellows
more frequently in lab experiments, gave less to charities
in the real world, and responded more evasively than others
on questionnaires.
Why? Either people who went into economics were different
to begin with. Or else the experience of being drilled in
the self-interest model conditioned them to behave differently
-- not radically, but enough to notice. Or, most likely,
the authors concluded, some of each.
Recently, Frank sat down to round up what he had learned
about the topic of cooperation in the decade since the article.
The result appeared earlier this year as What
Price the Moral High Ground? Ethical Dilemmas in Competitive
Environments, a book of essays, many of them adapted from
technical papers.
By itself, the book won't change economic discourse. Only
a better model can do that. Frank's candidate for broadening
our assumptions about human nature is a Darwinian approach
in which a wide range of hardwired emotions predispose us
to cooperation as well as to the pursuit of naked self-interest.
For most economists, and especially for the rest of us, the
book is a fine map of some of the territory that economics
leaves out. It is both a reassuring guide to the burgeoning
literature in evolutionary psychology and economics on modeling
motivation, and a showcase for Frank's own special talents
as an analyst of labor markets.
The title essay argues that moral satisfaction often can
explain salary differentials better than the differences in
education and training traditionally employed by economists.
Many people settle for lower-paying government or non-profit
sector jobs, Frank argues, because they see them as being
socially responsible and are compensated by increased self-esteem:
school teachers, police officers, nurses, community organizers
and the like. Women in particular often earn less for jobs
they consider morally responsible.
Pollyannish? Don't be so sure. Frank is alert to a
range of human motives that may have disappeared from the
economics journals and business magazines -- but which continue
strong in human hearts and minds. Who is to say that practitioners
of successful cooperation don't know more than proponents
of routine hard-headed behavior?
Frank is an uncommonly interesting
man in his own right. After graduating in math from Georgia
Tech in 1966, he spent two years in Nepal as a Peace Corps
volunteer, then went to Berkeley for an economics PhD, before
moving to Cornell University, where he remains today.
As chief economist for the Civil Aeronautics Board under Alfred
Kahn in the late 1970s, he helped phase out the old-line agency
in the very dawn of deregulation.
Since then, he has become a prolific
and original writer on topics of economic justice. He is the
author of Choosing
the Right Pond, Passions
Within Reason, Luxury
Fever and
The
Winner-Take-All Society, co-authored
with Philip Cook, as well as an introductory economics text
with Ben Bernanke, vice chairman of the Federal Reserve Board.
He is a regular adviser to the Dalai Lama.
There is also a lively interview with Frank in the forthcoming
The
Changing Face of Economics: Conversations with Cutting Edge
Economists by David Colander, Richard P.F. Holt and J.
Barkley Rosser, Jr.
Others interviewed include Robert Axtel of the Brookings
Institution and H. Peyton Young of Johns Hopkins University;
Kenneth G. Binmore of University College London; William A.
("Buz") Brock of the University of Wisconsin; Duncan Foley
of the New School for Social Research; Herbet Gintis of the
University of Massachusetts Amherst; Deirdre McCloskey of
the University of Illinois at Chicago and Erasmus University
Rotterdam; Richard Norgaard and Matthew Rabin, both of the
University of California, Berkeley-- plus grand old men Paul
Samuelson of the Massachusetts Institute of Technology and
Kenneth Arrow of Stanford University.
If pressed, Frank notes, "most economists will concede that
sometimes care about more than just their own material well
being. Many have concerns for the welfare of other people,
for aesthetics, for their duties as citizens, and so on."
But economists ignore these complicating overtones despite
evidence that people who act on cooperative motives
often do better than those who don't.
The process of contagion plays a big part in Frank's book.
Good is infectious as well as bad, he says. Sanctions are
important, because if vigorous enforcement isn't pursued,
standards of acceptable conduct decline over time. But good
behavior can be contagious too.
Readers who wish to experiment can undertake their own. When
you drive, drive exaggeratedly generously for a time.
Slow down to let persons seeking to turn left do so. Permit
drivers to enter heavy traffic from side streets.
Watch carefully to see how often the beneficiary of your
courtesy pays forward your kindness at the next opportunity.
Prepare to be pleasantly surprised.
And imagine a society where such ethical norms were generalized
and gently reinforced not just by injunctions such as the
old Boy Scout motto -- Do a Good Deed Daily! -- but by the
findings of a deeper and more sophisticated social science
as well.