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codingmess | 6 years ago

Again, economic theories don't need to be taken literal, they are simplified models. Just because somebody helps somebody else in need without immediately expecting a carrot in return, doesn't mean bartering is refuted.

Even in our today's world with money, people help other people in need. I don't think it defies economic reason, either. It is "pay it forward" or a kind of social insurance, as people can expect the same being done for them. Also perhaps it is simply a different kind of interaction, who says EVERYTHING has to be modeled as a trade? Or maybe it is the price for belonging to society, or to a certain circle of people, who would shun you if you would display antisocial behavior. Not every exchange good has to be a carrot.

Maybe the insurance model explains it quite well, now that I think about it.

Rational actors also work out in the long run, because by evolution the more rational strategy prevails. So people may not be aware why they help others (they don't do a calculation in their head every time), but it can still be the rational thing to do.

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