Behavioral Economics 2.0

Ostrom, Fehr, Schelling & Co. Cooperation usually deteriorates. How can we establish it in the long run?

Cooperation & coordination: do we need more of the same – or a change in human behavior?

Why do people protest at Tiananmen Square in Peking? Why did citizens demonstrate in Leipzig for more democratic rights in 1989? Why do top managers relinquish a part of their bonus payments? Why do many enterprises only implement a fraction of the strategic alignments they urgently need? What were the components of the atomic equilibrium between the USA and Russia? And what is a brinkmanship strategy?

Humans have often shown that they can spontaneously champion a cause with many others. However, a far larger share of processes of change fail – regardless of whether these are in enterprises, society, or politics.

The key for understanding these processes of change are human social preferences, which are seldom distributed evenly. Cooperation, understood as a person’s willingness to give something without knowing whether he/she will get anything back in return, is thus instable and usually fails sooner or later.

Only knowledge about the dynamics of cooperation equilibria permits the systematic and successful initiation, accompaniment, and realization of processes of change.

We support enterprises, policy makers, and organizations in making processes of change successful.

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