Research Paper 8 | Mathivation Research Lab
Behavioural Economics Research Series Paper 8 Research Paper 8: The Economics of Dignity & Power Memory A Behavioural Economics Perspective on Capability, Authority, and Institutional Productivity Abstract Institutions often interpret low productivity as a competence problem, while behavioural economics suggests a deeper structural variable: dignity. When dignity collapses, capabilities fail to convert into meaningful functionings, leading to hidden economic losses. This paper examines dignity as an institutional infrastructure, introduces the concept of “power memory,” and explains why authority transitions often trigger behavioural distortions despite leadership improvement. 1. Productivity Is Rarely a Skill Problem Most organizations assume inefficiency arises from lack of training, resources, or discipline. Yet many institutions equipped with talent and infrastructure still underperform. The missing variable is behavioural, not technical. People do not disengage b...