Economic flexibility is much discussed in the academic literature but has no agreed definition. In neoclassical economics, a flexible economy can be secured only by removing structural rigidities that block relative price movements and hamper the operation of markets – social structures are...

This paper builds a bridge between certain of the most basic principles of economics and those of evolutionary biology. It begins by extending Ronald Coase’s “The Nature of the Firm” to an investigation of how, as their environment evolves, species achieve adaptive efficiency by...

Tipping is a multi-billion dollar phenomenon and a major source of income for millions of workers. The results of a study conducted in the US and Israel suggest that people tip mainly to show gratitude, conform to the social norm, and because they know that waiters' income depends on tips....

Mentalising is assumed to be involved in decision-making that is necessary to social interaction. We investigated the relationship between mentalising and two types of strategic games - those involving the choice to cooperate with another for joint gain or compete for own gain and those...

The paper presents a model of the evolution of social norms. When a norm is costly to follow and people do not derive benefits from following it except for avoiding social disapproval, the norm erodes over time. Tip percentages, however, increased over the years, suggesting that people derive...

This study explores gender-differentiated benefits from the social capital buildup in technology uptake, and the decision-making patterns of men and women with respect to production, consumption and household task; and allocation of resources. The background research examined women’s role in...

According to Plato, thymòs – a notion denoting the human need for recognition – triggers off the most powerful and overwhelming human passions. Indeed, any action originated and nurtured by thymòtic passions places its own raison d’être in itself. The acts motivated by thymòs can...

Globally, the real economy of goods and services functions better than ever in human history, but the financial and monetary system remains subject to crippling crises, including a severe one in 2008. This deviation can be explained by ‘‘the power of bad ideas’’, in particular...

From the beginning of economic reform in 1992, the retail trade sector was one of the most liberalized market segments in the Russian economy. However, the state was suddenly brought back in during the late 2000s. A restrictive Federal trade law passed after continuous and furious debates in...