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Introduction 3

1 Values and institutions in economic analysis&Avner Ben-Ner and Lonis Putterman 3

Part Ⅰ The formation and evolution of social norms and values 73

2 Normative expectations:the simultaneous evolution of institutions and norms&Robert Sugden 73

3 A utilitarian theory of political legitimacy&Ken Binmore 101

4 Why do we care what others think about us?&Chaim Fershtman and Yoram Weiss 133

5 Starting with nothing:on the impossibility of grounding norms solely in self-interest&Jane Mansbridge 151

Part Ⅱ The generation and transmission ofvalues in families and communities 171

6 Did Father know best?Families,markets,and the supply of caring labor&Nancy Folbre and Thomas E. Weisskopf 171

7 How communities govern:the structural basis of prosocial norms&Samuel Bowles and Herbert Gintis 206

8 Moral overload and its alleviation&Timur Kuran 231

9 Moral diversity and specialized values:some observations&John Michael Montias 267

Part Ⅲ Social norms and culture 275

10 Social norms as positional arms control agreements&Robert H. Frank 275

11 Bribes and gifts&Susan Rose-Ackerman 296

12 How do we know whether a monetary transaction is a gift,an entitlement,or compensation?&Viviana Zelizer 329

Part Ⅳ The organization of work,trust,and incentives 337

13 How effective are trust-and reciprocity-based incentives?&Ernst Fehr and Simon G？chter 337

14 Worker trust,system vulnerability,and the performance ofwork groups&Andrew Schotter 364

15 Trust:beliefs and morality&Jonathan Baron 408

16 Institutional commitment:values or incentives?&Russell Hardin 419

Part Ⅴ Markets,values,and welfare 437

17 Institutions and morale:the crowding-out effect&Bruno S. Frey 437

18 The joyless market economy&Robert E. Lane 461

Epilogue 491

19 Where have we been and where are we going?&Douglass C. North 491

Index 509