Moral Markets: Paul Zak discusses Oxytocin, Trade, and Human Nature

"Our biology really tells us that, at our hearts, we're libertarians." So says Paul J. Zak, who spoke recently at Reason Foundation's annual Reason Weekend.

Zak is the founding director of the Center for Neuroeconomics Studies at Claremont Graduate University and is credited with the first published use of the term "neuroeconomics," a new discipline that integrates neuroscience and economics. Zak discusses his "oxytocin argument," which he explores in the book Moral Markets: The Critical Role of Values in the Economy.

In 2004, Zak's lab discovered that the chemical oxytocin (best known for inducing labor in women) allows us to determine whom to trust in situations that require exchange. That's the same trust that makes trade possible and underpins modern economies.

Approximately 14 minutes-long. Filmed by Alex Manning and Paul Detrick; Editd by Hawk Jensen.

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[madass888]

@Hamandchees3

You can not be designed for a 'market'. What is a market? What is a free market? You have a free market when there's an absence of coercion. When all interaction between individuals are voluntary. It's the absence of a central plan forced upon individuals. It is to let the natural behavior of humans the come through. As long as no force is used people are free to organize or not to organize. You can be a mormon, socialist or amish.

[UnconformistSheep]

Cool video. But he didn't get to explain that first puzzle for why you cannot move your leg clockwise while drawing a six with your hand! ;)

[SisyphusRedeemed]

"Our biology really tells us that, at our hearts, we're libertarians."

How on earth does this follow from anything he said? Sure, we're hard-wired to reward those who cooperate with us and punish those who defect; how does that entail libertarianism? Madoff is hardly the key problem. He needs to deal with Nike, Apple, Shell, market externalities, asymmetries of information, opportunity, and access, market failures and collective action problems. His conclusion doesn't follow.

[CheddarBob39]

I looked it up. And I see products that have "SCAM" written all over them. Like "Liquid trust."

It is a spray that you put on your body that apparently has "oxytocin" in it. First off, I don't know if spraying it on yourself would do anything, and two, I don't even KNOW if it even has oxytocin in it even though it claims to have it. Where can I get REAL OXYTOCIN that is injested not sprayed onto the body.

[CheddarBob39]

I like this guy. He is a great speaker and his presentations are great. He sounds smart and sincere. What I am saying is he doesn't seem like a snake oil salesman. I would like to try some oxytocin but I have never really been a hugger. The question is...WHERE CAN I GET SOME? Yes, you can tell me to go hug somebody. But I think maybe the Oxytocin will help me be more hug worthy.

[artsHscience]

A study needs to be done on how many floor traders in Wall Street are so stressed that they are not producing oxytocin anymore.

I would say that upwards of 70% of those traders would be measured as oxytocin deficients.

[artsHscience]

He introduces the fatal flaw to his own conclusion that markets are moral. The 5% genetic oxytocin deficient and the extra percentages of heavily stressed oxytocin diminished individuals. These people corner markets, achieve monopolies and run the corporations. They are who make the markets more unfair and create the need for regulations. They are the ones that destroy libertarianism.

His conclusion is faulty for lack of including their effects.

[yadsik]

It seems somewhat like he is injecting his beliefs about economics into the simple fact that it is natural to develop trust. High levels of oxytocin facilitates trust. Trust helps in capitalism, but that does not mean that there aren't dehumanizing elements in capitalism by its very nature. It isn't an intended consequence, but it is the nature of the system, that capitalism results in commodification of humans by the sale of labour.

[HolisticResourceInfo]

If corporations had oxytocin this would be a lot more meaningful. Individuals within a corporate filter should be studied in this regard before we count on this. The benefit of oxytocin is indisputable, but the effect of conscienceless corporate cultures is also widely manifest.

[HolisticResourceInfo]

If corporations had oxytocin this would be a lot more meaningful. Individuals within a corporate filter should be studied in this regard before we count on this. The benefit of oxytocin is indisputable, but the effect of consciousless corporate cultures is also widely manifest.