The Vampire Economist and the Moral Molecule: Q&A with neuroeconomist Paul Zak

In his new book, The Moral Molecule: The Source of Love and Prosperity, neuroeconomist Paul J. Zak discusses his research on oxytocin, what he calls the "moral molecule." For the past 10 years, Zak has been conducting the same kind of trust games that are common in experimental economics, but with a twist. Before and after the trust games, Zak has been taking blood samples with the goal of gaining a better understanding of how and why people trust others.

Zak's work on oxytocin, which Genome author Matt Ridley calls "one of the most revealing experiments in the history of economics," helps economists understand why people are often generous to complete strangers and why those complete strangers so often reciprocate. The key, Zak explains, is oxytocin. Our brains release oxytocin when we hug others, when we receive gifts and when we are trusted. Because elevated oxytocin levels in the blood make us more likely to trust others, oxytocin plays an essential role in all human interactions, including the process of wealth creation. As Zak puts it, "You can't induce your brain to release oxytocin, you can only give it to somebody else. If you give this gift, our biology has set us up so that people will return it to us."

Approximately 5.5 minutes.

Produced by Paul Feine & Alex Manning.

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[koahzvika]

Rich countries are rich because of trust: Absolutely! And if you will notice, nepotism is just as much about a lack of trust in others to do the job right, as it is a desire to put your kin ahead of others in the marketplace. I would use nepotism as a barometer of trust in an economy. And using this measure, the US is clearly on its way down into the ranks of the poor. How sad.

[MortimerTheClueless]

When I saw "Vampire Economics" in the title, I was thinking that this must be a new name for "Trickle-Down Theory". Corporations and the super-rich are like vampires, sucking the blood out of the middle class, feeding on us because we are helpless to prevent it. Cutting taxes on corporations and deregulation, which is what Republicans openly want to do, will only give the Corporate Right even more power over their victims (namely, the middle class).

[GregoryTheGr8ster]

Absolutely! And government gets the reputation of being a loving, warm, compassionate, altruistic institution that truly cares about its people. Wherever you are and whatever phase of life you are in, your government is there to help.

[theredscourge]

I'd be interested to see what would happen in the scenario if they were instead told that $20 had been taken to them, and they could decide how much of $10 of those dollars they got to keep or share with the next person, and keep the same x3 multiplication factor, and see what they end up with. I suspect they'd find people are more generous or perhaps risky people are when their own money is theoretically on the line.

[Michael Brown]

This is why game theory isn't predictive. We're not rational maximizers.

[Michael Brown]

So, in reality, wealthy countries are *high-trust* cultures, contrary to leftist claims.

[MrDromaeosaurid]

"We call them Bastards."

[ilikemitchhedberg]

I do well in work when I act as a friend. I've done very poor when acting like a jerk. One should make it as easy as possible for others to bond with you.

[invisibleaznDJ]

But happens when the government gives away other people's money? The gov gets love from the ever growing number of people on entitlement programs. I guess that's what the socialists count on for getting more votes.

[informaldissent]

Who looks at economics but ignores psychology? You say that like it's a common position to take. The Austrian school believes in psychology. They just don't apply scientific empiricism to macroeconomics because they consider it unreliable.

Oh, and just to clarify, I did not mention or even use the term praxeology, that was somebody else.