On the Use of the Term "Self-Interest" in Economics

re: On the Use of the Term "Self-Interest" in Economics

Donny with an A — Fri, 27 Jun 2008 06:11:51 GMT

Well the thing is, Geoffrey, if "self-interest" is defined the way economists use it, then the sort of altruistic behavior Rand was objecting to (behavior which sacrifices self interest) could not possibly exist. It would be a meaningless concept. I take it that Ayn Rand was talking about something that people actually are capable of doing when she was talking about "self-immolation" and altruistic behavior. And critically, setting altruistic behavior apart from self-interested behavior requires the lay definition of "self-interested," and is incompatible with the economists' definition. At least, I think so...right?

As for what I've said being "bullshite," I suppose I'm not sure how to respond except to quip, "Oh, I guess I'm wrong then."

re: On the Use of the Term "Self-Interest" in Economics

Geoffrey Allan Plauche — Thu, 26 Jun 2008 15:10:00 GMT

"But when presented with the claim that jumping on the grenade is a self-interested behavior, the average person tends to become perplexed. It's only after a thorough explanation of the "economic" meaning of the term that it becomes clear how this could be the case. Why does this happen? The reason, I contend, is that economists mean something completely different by the term "self-interested" than lay people do. This, I will argue, is a problem, and should be remedied in order to prevent completely unnecessary confusion and error."

It's not just an economic meaning. You're familiar with Ayn Rand, right? It's true of Aristotle and his felllow Greeks as well. Thy reason why laypeople and most intellectuals get confused is that they've been spoonfed various altruistic, deontological or consequentialist (not eudaimonistic virtue ethical) ethical theories and beliefs all their lives.

re: On the Use of the Term "Self-Interest" in Economics

Elhan\anthony — Thu, 26 Jun 2008 15:04:33 GMT

bullshite!