I believe that "economic thinking" can be used to explain a lot of "non-economic" phenomena. This came to mind while I was listening to an episode of This American Life on my public radio station this past weekend. The episode was about mind games, and I only listened to the first two segments. What struck me was that there were social exchanges going on that were caused by deliberate information asymmetries. If this kind of deception were going on in "the marketplace", many of us would cry "fraud." We might even demand retribution, compensation, or "justice." My question for you and your students, what is our reaction in the social arena?
I would welcome your comments.