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carbon-neutral energy sources are precisely those countries that havemade the most significant contributions to climate change. This meansthat cooperative provision of such technologies by those countries wouldpromote ecological sustainability, just distribution, and allocative efficiency.Private, competitive provision would undermine all of these goals.Climate is one of the most important services provided by Earth’secosystems. In Chapter 10 we explained that most ecosystem services arepublic goods or common-pool resources, both of which seem to requirecooperative provision. The good news is that sound science amply confirmsour most basic common sense that cooperative, other-regarding behavioris widespread. Economic analysis of the most serious problemscurrently faced by society reveals that cooperation will be needed to solvethem. It would therefore be extremely foolish to blindly follow an economicmodel that fosters competition and claims that true cooperation iswell nigh impossible. This is not to say that competitive market forceshave no role in our economy but rather that we cannot rely on the marketfor the sustainable, just, and efficient allocation of all resources.It would be just as foolish to argue for an economy based purely oncooperation as it is to argue for one based purely on competition, however.Allocative mechanisms must be tailored both to specific desirableends and to the specific characteristics of the resources needed to attainthem.Chapter 13 Human Behavior and Economics • 257BIG IDEAS to remember■■■■■■■Homo economicus,H. reciprocans, H. communicusBehavioral economicsNeuroeconomicsProsocial behaviorEasterlin paradoxChoice under conflictExtrinsic and intrinsicincentives■■■■■■Dictator gameUltimatum gamePrisoner’s dilemmaPublic-good and commonpoolresource gameAltruistic punishmentConditional cooperation

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