This mental model distinguishes between two types of norms that govern human behavior: social norms and market norms. Social norms are based on social relationships, reciprocity, and a sense of community, while market norms are driven by economic transactions, contracts, and monetary incentives. Understanding the differences between these norms is crucial for designing effective incentives and fostering cooperation.
Understanding the difference between social and market
norms is key to effective decision-making. πΌπ₯
#SocialNorms #MarketNorms #MentalModels #BehavioralEconomics #Psychology
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