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Rules of Conduct Are Culturally Specific

Norms of propriety are culturally and locally specific: the Korean hotel staff graciously declined a tip not because they preferred less money but because, in their cultural rule system, excellent service was their duty rather than a beneficent act above the call of duty, illustrating that conduct -- not utility maximization -- governs behavior and that both parties' apparent 'irrationality' dissolves once propriety is understood.

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Speaker

Vernon Smith

Evidence Quote

I was following the rules in my environment, back in the United States, where you reward actions you see of a beneficent character, above and beyond the call of duty... These people were telling me it wasn't above and beyond their call of duty.

Source

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

My Notes

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