ABSTRACT

In this chapter, we present an overview of recent economic research into the role of virtues in the economic domain. Section 1 sheds light on the debate on doux commerce versus self-destruction by an overview of literature on the empirical effects of market institutions on various virtues. Next, we discuss game theory that provides insight into the effects of social preferences that are closely aligned with virtues in the economic domain and consider some recent experimental research on the behavioral effects of different types of social preferences on social outcomes. Third, we present some recent research on the impact of civic virtues on happiness based on data from the World Values Survey. In the last section we describe some researches that show that the influence of free markets on happiness might be conditional on virtues.