Traditional Textbook Economics has the point of view of maximising utility. It means that each individual’s action in the economy is based on the expectation that they will make the maximum possible gain from a transaction. Whereas, behavioural economics has taught us, painfully, that we may not always be doing this well. We may set out with the best intentions of maximum gain but many times our actions fall short of the goal.
“It is not the final action, but the motivation underlying the action, that decides what is or is not viewed as cooperative or fair behaviour.”
– Games Indians Play by V Raghunathan