TITLE:
Relationships, Human Behaviour and Financial Transactions
AUTHORS:
Mehdi Chowdhury
KEYWORDS:
Efficiency, Human Behaviour, Financial Transactions
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.9,
December
9,
2014
ABSTRACT: It is widely known that relationships and
human behaviours such as trust, reciprocity and altruism that are observed in
the human societies are capable of facilitating financial transactions. This
paper proposes a theoretical model to argue that though these elements can
facilitate financial transactions, they may not always ensure efficiency in the
sense of creation of additional wealth. As financial resources are scarce, the
paper argues that the financial transactions induced by relationships, trust,
reciprocity and altruism may lead to inefficient allocations of resources.