Self-Interest: The Economist's Straitjacket

Robert  Simons

Working Paper | HBS Working Paper Series | 2015

Self-Interest: The Economist's Straitjacket

Abstract

This paper examines contemporary economic theories that focus on the design and management of business organizations. In the first part of the paper, a taxonomy is presented that describes the different types of economists interested in this subject—market economists, regulatory economists, and enlightened economists—and illustrates the extent to which each tribe has been captured by the concept of self-interest. After arguing that this fixation has caused—and is likely to continue to cause—significant harm to our economy, the paper then presents an alternative approach based on a theory of business and discusses the implications for research and teaching.

Keywords: self-interest; economist; moral philosophers; agency theory; regulation; Capture; organization design; economy theory; organization theory; management theory; business education; competition; customers; commitment; controls; boundaries; Governance; Customers; Conflict of Interests; Business or Company Management; Competition; Organizational Design; Business Education; Agency Theory; Economics;

Language: English

Format: Print

43 pages

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Citation:

Simons, Robert. "Self-Interest: The Economist's Straitjacket." Harvard Business School Working Paper, No. 16-045, October 2015.

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Self-Interest: The Economist's Straitjacket

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