Is market exchange solely dependent on selfishness or does other-regarding behavior play any substantial role? This the quest for a moral compass pdf reviews the philosophical, psychological and neurological basis for moral values, showing that they are consistent and measurable.

I demonstrate that values play a role in social interactions, including market exchange. This idea is of ancient origin, but is most clearly articulated in Adam Smith’s Theory of Moral Sentiments. The moral nature of social decisions is used to identify modifications of the standard expected utility model, and implications for a value-based approach to human decisions are elucidated for law, regulation, business organization, economic growth, and happiness. The conditions that lead to moral market failures like the Enron debacle are also described. Not only do morals underpin markets, but intriguing new evidence suggests that markets may strengthen moral values. Check if you have access through your login credentials or your institution.

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