An Economic Theory of Greed, Love, Groups, and Networks

Why are people loyal? How do groups form and how do they create incentives for their members to abide by group norms? Until now, economics has only been able to partially answer these questions. In this groundbreaking work, Paul Frijters presents a new unified theory of human behaviour. To do so, he incorporates comprehensive yet tractable definitions of love and power, and the dynamics of groups and networks, into the traditional mainstream economic view. The result is an enhanced view of human societies that nevertheless retains the pursuit of self-interest at its core. This book provides a digestible but comprehensive theory of our socioeconomic system, which condenses its immense complexity into simplified representations. The result both illuminates humanity's history and suggests ways forward for policies today, in areas as diverse as poverty reduction and tax compliance.

Part I. Greed and Love: 1. Individual materialism, organizations, and power; 2. Love: the missing building block; Part II. Groups, Power and the Development of Institutions: 3. Groups and power; 4. Networks and markets; Part III. Implications and Examples: 5. The aggregate view; 6. Theoretical appendix.

In this groundbreaking work, Paul Frijters presents a unified theory of human behaviour. He incorporates tractable definitions of love and power, and the dynamics of groups and networks, into the traditional mainstream economic view to answer fundamental questions about our socioeconomic system.

Professor Paul Frijters is a Professor of Economics at the University of Queensland. He was elected 'Best Economist under 40 in Australia' by the Economic Society of Australia for 2009–11, and his work consistently ranks in the top 4% of downloaded and cited economic research in the world. Professor Frijters has undertaken research in a wide variety of fields, including happiness and well-being, migration in China, behavioural economics and health economics. The findings of his research feature regularly in the global media.
Dr Gigi Foster is a senior lecturer in the School of Economics within the Australian School of Business at the University of New South Wales. Her research focuses primarily on decisions related to human capital, with a particular emphasis on social influence and behavioural economics.