Altruistic Economics: Why this is a Sound Alternative to Neo-Classical Economic

Neo-classical economic analysis, along with almost all game theory, has treated economic gain as the primary human motives for centuries. However, the predictions and models derived from this assumption of rational selfishness towards economic gain have failed in many contexts, and more economists are realizing that a well-functioning economy cannot rely only on self-interest, but also requires cooperation and altruistic behaviors that benefits people’s wellbeing as a whole. Compiling different ideas, theories, and results of experimental designs through in-depth research, this paper will introduce altruism in terms of evolutional biology and behavioral economics and discuss what altruistic system of economics is, how it works, and why this may be a sound alternative to the current system of economics that are based on capitalism and money system.