Altruism as a source of self-interested behavior

Abstract

It is well-known in economics that the assumption of self-interest can lead to cooperative and altruistic behavior. This paper shows the less well-known converse, that altruism can lead to behavior which appears based on self-interest. This approach leads to a distinction between small groups and large groups which has a number of implications. One which the paper explores is a way of thinking which may help explain why free-rider problems are sometimes not as severe as normal economic assumptions predict.