The hierarchy of human needs and their social valuation
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 15 February 2011
Abstract
Purpose
The purpose of this paper is to discuss the valuation of human needs within a given hierarchy. An important distinction is made between private utility and social relevance of needs.
Design/methodology/approach
The authors consider a generic hierarchy of needs in a world of similar agents. For the assumed pyramid, agents have to predict the current social value of a need that they will try to fulfill only at some future date. Several possibilities are explored about the way agents predict the social value of future needs.
Findings
It is found that if agents are unable to form an accurate forecast on the social value of a future need, distortions will eventually occur. Complex dynamics may emerge when agents try to learn future social values and use inaccurate learning algorithms.
Research limitations/implications
The paper discusses how individuals measure the value of a need that is fulfilled in some future date. Results are dependent on the assumed learning algorithm. Different learning algorithms may lead to other kinds of long‐term implications.
Practical implications
The paper allows for a better understanding of how human needs can be valued.
Social implications
It is highlighted that aggregate behavior on the evaluation of needs may be different from the behavior of an average agent.
Originality/value
In this paper, the notion of hierarchy of needs is combined with an assessment of how agents form expectations about future events. This furnishes a new paradigm of analysis that can be explored in related future work.
Keywords
Citation
Gomes, O. (2011), "The hierarchy of human needs and their social valuation", International Journal of Social Economics, Vol. 38 No. 3, pp. 237-259. https://doi.org/10.1108/03068291111105183
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited