ABSTRACT
Greed is a central element in human existence. It is also frequently mentioned as a factor in many organizational and financial scandals. Not all analysts agree that greed is the basis of capitalism. Indeed, there appears to be a minor industry among conservative economists in denying that capitalism is based on greed. Whether greed is essential to capitalism or just a common convenience, it is clear that the consequences of greed for society as a whole are both positive and negative. Setting aside the game-theoretic mathematics, the researchers found that moderate levels of greed promoted social cohesion: Moderate greediness causes individuals’ dissatisfaction, making them explore other strategies and/or positions and experience the benefits of being cooperative in a cooperative neighborhood. The perception of greed as harmful extends to the mere act of profiting, which is of course the only way that capitalist markets can function.
