ARBUS202 Lecture Notes - Lecture 6: Upward Bound, Joseph Heath
16 Feb 2017
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Document Summary
The reality it is in everyone"s self interest to free ride. Cooperation, however, to the extent that it is vulnerable to free-rider problems, requires that individuals refrain from pursuing their self-interest (self interest) . The first type of cooperation is where people help each other in the same employment (economies of scale) The second type of cooperation is where people help each other in different employments (gains from trade) The reason we engage in these mutually beneficial interactions is because it is in our self-interest to do so. By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it (adam smith) Cooperation, however, to the extent that it is vulnerable to free-rider problems, requires that individuals refrain from pursuing self-interest. We engage in mutually beneficial interactions out of self-interest but we must curb self-interest of cooperation is to possible.
