The Economic Approach to Human Behavior [antikvár]

The Economic Approach to Human Behavior Economy is the art of making the most of life. George Bernard Shaw The following essays use an "economie" approach in seeking to under-stand human behavior in a variety of contexts and situations. Although few persons would dispute the distinctiveness of an economic approach, it is not easy to state exactly what distinguishes the economic approach from sociological, psychological, anthropological, political, or even genetical approaches. In this introductory essay I attempt to spell out the principal attributes of the economic approach. Let us turn for guidance first to the définitions of different fields. At least three conflicting définitions of économies are still common. Economies is said to be the study of (1) the allocation of material goods to satisfy material wants,1 (2) the market sector,2 and (3) the allocation of scarce means to satisfy competing ends.3 For very helpful comments I am indebted to Joseph Ben-David, Milton Friedman, Victor Fuchs, Robert T. Michael, Jacob Mineer, Richard Posner, and T. W. Schultz. I am especially indebted to George J. Stigler for many discussions, comments, and much-needed encouragement, and to Robert K. Merton for a very helpful and lengthy response to an earlier draft that provided a sociologist's perspective on the issues covered in this essay. The usual disclaimer to the eflfect that none of these persons should be held responsible for the arguments made in this essay is especially appropriate since several disagreed with the central theme. 1 "[Economies] is the social science that deals with the ways in which men and societies seek to satisfy their material needs and desires," Albert Rees (1968); "[Economies is the] study of the supplying of man's physical needs and wants," art. "Economies," The Columbia Encyclopedia, 3d ed. p. 624; and see the many earlier references to Marshall, Cannan, and others in L. Robbins (1962). 2 A. C. Pigou said "[Economie welfare is] that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money" (1962, p. 11). 3 "Economies is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses," Robbins (1962, p. 16); "Economies is the study of the allocation of scarce resources among unlimited and competing uses," Rees (1968) and many other references.