Evolutionary psychology and economics

Yexin Jessica Li

Chapter 12 in Handbook of Evolutionary Psychology, 2026, pp 203-218 from Edward Elgar Publishing

Abstract: Although economists such as John Maynard Keynes long recognized that ‘animal spirits’ strongly influence human decision-making, mainstream economics has largely retained the assumption that people are rational, self-interested agents who consistently maximize utility. This chapter draws on evolutionary psychology to revisit Keynes’ insight, showing how many seemingly irrational behaviors reflect adaptations shaped in ancestral environments. It discusses evidence that instincts for fairness, cooperation, and altruistic punishment are not errors but functional heuristics that continue to shape financial and consumer decisions today. This chapter also highlights how mismatches between evolved motives and modern markets illuminate phenomena such as inequality aversion and the tenuous link between wealth and well-being, offering new directions for economic theory and policy.

Keywords: Utility Maximization; Fundamental Motives Framework; Moral Emotions; Economic Games; Relational Models Theory; Life History Theory (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035332496
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