Economics of the Community Mechanism

Author: Masao Ogaki
Date: 2023/3/10
No: DP2023-004
JEL Classification codes: A10, D01, D04
Language: Japanese
[ Abstract / Highlights ]
1. This paper discusses the importance of the community mechanism that complements the market and power mechanisms in an economic system during an era of crisis. 2. The community mechanism is defined as a mechanism for resource allocation by which at least one person proposes voluntary cooperation, and the proposal is not rejected. 3. While this community mechanism can function alongside homo economicus in win–win situations, it can be further activated with social preferences for altruism and reciprocity and with norms or worldviews that encourage cooperation. 4. Other factors that relate to these include the character strengths that contribute to community and society known as virtues, with the concept of wellbeing related to virtues being known as eudaimonia.