Rotten-Kid theorem

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The rotten kid theorem of Gary Becker is a theorem from the family economics .

It says that with a generous and altruistic head of the household , it is also in the interest of a completely selfish member of the household to contribute to the increase of the total income of the household at the expense of their own direct benefit, since the benefits that relate to the household member are greater than those of direct benefit maximization is arising.

literature

  • Becker, Gary (1974): A Theory of Social Interactions , Journal of Political Economy , 82, 1063-1093.