Altruism and Perceptions of Fairness in Behavioral Economics

The video explores the concept of altruism in behavioral economics, contrasting it with the traditional economic model of homo economicus, which assumes individuals act solely in their self-interest. It highlights how altruism and perceptions of fairness can influence economic decisions, using examples like the ultimatum game and social norms on trains. The video emphasizes the importance of considering altruism and fairness in economic analysis to avoid incorrect conclusions.

What role do perceptions of fairness play in economic decisions according to the text?

Discuss the implications of social norms on market behavior as described in the text.

Why is it important for economists to consider altruism and perceptions of fairness?