What can economics learn from being more caring and compassionate?
Tania Singer: Traditional economic theory still believes that you have specific, stable preferences that are independent of context and aim at optimizing your own outcomes and returns. Psychology and social neuroscience suggest, however, that humans are equally capable of altruism in addition to being self-centered and that we are driven by different motivations depending on the context we are in. For example, you can be motivated by power or achievement or you could also be motivated by care or affiliation. Context shapes what motivates you.
For example, if you’re a broker at a bank where the whole institutional design centers around competition, the primary motivator will be power or achievement. However, if the same broker comes home and his young child welcomes him with the words “Papa,” then his care- and affiliation-based system will be most active and he will probably act in the benefit of his child even at high costs to himself. We all experience that, but depending on the context, we behave differently. This view, however, requires that classical economic models be revised accordingly to incorporate context-dependent and motivation-based considerations that also include care and affiliation. We call this framework “Caring Economics.”
How did you tease these factors apart in the lab?
In the lab, we look at decision making in monetary social exchange games among many different people, which can simulate complex human interactions like trust, social cooperation, giving or punishments. This line of research resulted from collaborations among economists, psychologists and neuroscientists who work together to understand what the conditions are for cooperation to arise or to break down.
In the context of our Caring Economics project with Dennis Snower, president of the Kiel Institute for the World Economy, we started testing our ideas by implementing different game scenarios while reinforcing specific motivations in participants beforehand. For example, we induced caring motivation in the lab and then observed that these participants were much more generous, trusting and prosocial than when we, for example, induced power motivation in participants before engaging in social exchange with others. Power, in contrast, increased their punishment-related behaviors.
Care can also be activated through compassion meditation and other socio-emotional mental practices. Research already suggests that short-term daily mental training can increase altruism in humans.