ECONOMIC PERSPECTIVES ON CULTURAL EVOLUTION: ECONOMIC INSTITUTIONS AND EVOLUTION OF SOCIAL NORMS
Abstract
Recent game theoretical studies illustrate that mutual trust among people is
what a society needs to be able to sustain a market order on a long-term basis and
at reasonable transaction costs. In this context, social norms play a crucial role in
the evolution of the economic structure, On the other hand, the evolution of the
market structure and other economic institutions means something more than
simply a change in the ways of allocation of goods and resources and has a
profound effect on social norms and values that form our preferences. In this
paper, by drawing on the game theory literature, we first explore the role played
by social norms and generalized morality in the expansion of markets. Secondly,
by using the endogenous preferences model, we discuss how these social norms
can be influenced by the evolution of the economic structure. The last part of the
paper is a case study on conversion to Islam in Sub Saharan Africa, in which we
test the relevance of our theoretical arguments.
Keywords
References
- Ames Ruth and Gerald Marweli. 1981. "Economists Free Ride. Does Anyone Else?" Journal of Public Economics 15: 295-310.
- Axelrod, Robert. 1997. The Complexity of Cooperation. Princeton, New Jersey: Princeton University Press.
- Bowles, Samuel. 1998. "Endogenous Preferences: Cultural Consequences of Markets and Other Economic Institutions." Journal of Economic Literature, 36: 75-111.
- Bowles, Samuel. 2000. "Individual Interactions, Group Conflicts and the Evolution of Preferences" in Social Dynamics, Steven Durlauf and Peyton Young (ed), Cambridge: M I T Press.
- Boyd, Robert and Peter J. Richerson. 1985. Culture and the Evolutionary Process. Chicago and London: University of Chicago Press. 48
- Buchanan, James M . 1975. The Limits of Liberty. Chicago: University of Chicago Press,.
- Clarke, Peter B. 1982. West Africa and Islam. London: Arnoid.
- Dasgupta, Partha. 1988. "Trust as a Commodity", in Trust: Making and Breaking Cooperative Relations, Gambetta, D (ed.), Oxford: Basil Blackweil.
Details
Primary Language
English
Subjects
Business Administration
Journal Section
Research Article
Authors
Murat Birdal
This is me
Publication Date
January 26, 2012
Submission Date
January 26, 2012
Acceptance Date
-
Published in Issue
Year 2007 Volume: 57 Number: 2