Rotten kid theorem

Gary Becker's theorem of social interaction, colloquially known as the rotten kid theorem, suggests that family members, even if they are selfish, will act to help one another if their financial incentives are properly linked. Becker creates a hypothetical situation in which children will receive gifts of money income from a wealthy, altruistic parent in order to make them happy. One of the kids is a selfish, "rotten" kid who would take pleasure ... more

Award-Winning Work

Awards Won:

Year Award Award Winner Winning work Notes/Description
  • 1992
  • "for having extended the domain of microeconomic analysis to a wide range of human behaviour and interaction, including nonmarket behaviour"
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