Abstract
The behavior of an individual may be discussed in terms of a “satisfaction function”. An individual may be considered to always behave in such a way as to make his satisfaction function a maximum. The interaction of two individuals may consist in a cooperation in the production of any kind of objects of satisfaction. Those objects may be either material goods or anything else. The satisfaction of each individual is determined by his share in the total output as well as by the effort he makes. It is shown that for a prescribed method of sharing a behavior in which each individual attempts to maximize the total satisfaction of both individuals results in a greater output than a behavior in which each individual attempts to maximize his own satisfaction.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.