Questions on The Dark Side of the Force by Hirshleifer Give

Questions on “The Dark Side of the Force” by Hirshleifer:

Give an example of “The Dark Side”

“Hirshleifer believed that institutions should be designed to eliminate self-interest (i.e., The Dark Side).” Evaluate this statement.

“Cooperation, with a fewobviousexceptions, only occurs in the shadow of conflict.” Explain what Hirshleifer means here.

What does Hirshleifer recommends to the economics profession?  

Solution

Hirshleifer believed that institutions should be designed to eliminate self-interest

At present there are a lot of institutions in every country which initially were designed with an intention to serve people and not earn profit which eliminates the chances of self interest which also eliminates the chances of any non economic activity. there are a lot of economic exchanges in the world through which one might can earn profit is illegal or non economic.

Cooperation, with a fewobviousexceptions, only occurs in the shadow of conflict

It is important to understant initially the threats and struggles which one might can encounter in a particular economic exchange only then one will be able to understand the when, why and how of that exchange. so suppose owner and labour are exchanging service and money, they might need to understand the threats in that particular exchange. before the exchange or the economic activity i.e. the trial, they are uncertain that what might can happen which in economics we call as RISK.