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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 SmithEvidence 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.”
Created: 6/13/2026, 12:22:45 AM
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