The Internet and Social Media change our way of decision-making. We are no longer the independent decision makers we used to be. Instead, we have become networked minds, social decision-makers, more than ever before. This has several fundamental implications. First of all, our economic theories must change, and second, our economic institutions must be adapted to support the social decision-maker, the “homo socialis“, rather than tailored to the perfect egoist, known as “homo economicus”.
The financial, economic and public debt crisis has seriously damaged our trust in mainstream economic theory. Can it really offer an adequate description of economic reality? Laboratory experiments keep questioning one of the main pillars of economic theory, the “homo economicus“. They show that the perfectly self-regarding decision-maker is not the rule, but rather the exception. And they show that markets, as they are organized today, are undermining ethical behavior.