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.

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