causal

Choice Is Governed by Social Criteria, Not Utility

Although Adam Smith assumes self-love (non-satiation) as a stoic axiom, he holds that actual decisions are governed by social criteria -- the desire for praise and praiseworthiness and the avoidance of blame and blameworthiness -- so one can tell a complete story of human interaction without invoking a utility function at all.

causalpending

Speaker

Vernon Smith

Evidence Quote

it's the social criteria that drives and governs our choice... I'm not saying that it isn't possible to introduce some kind of a utility function. Of course. But the point is, you don't need it.

Source

Vernon Smith on Adam Smith and the Human EnterpriseEconTalk
Created: 6/13/2026, 12:22:45 AM

My Notes

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