Lecture video reflection

Re: Lecture video reflection

David Joseph -
Number of replies: 0
The statement raises an interesting point regarding the role of social preferences and incomplete contracts in the modern economy. It suggests that as the economy has evolved into areas where contracts are inherently incomplete and unenforceable, social preferences become crucial in maintaining high economic performance. However, it also acknowledges the limitations of clever policymaking mechanisms in achieving desired outcomes within a liberal society, as they may inadvertently undermine ethical motivation.