Can homo economicus be an altruist? A classroom experimental method

Abstract The model of rational economic man (homo oeconomicus), being the central concept in economics, is not profoundly presented during basic economics classes. Thus, students can misinterpret the concept: homo oeconomicus is presumed to be rational and utterly selfish, while altruistic behaviour is treated as a deviation. Incorporating pro-social and altruistic motives to the models of rational human behaviour is a relatively new trend in academic economic literature, while undergraduate teaching programs still tend to neglect issues related to ethics, moral reasoning, or social interactions. This paper presents the tools for discussing the rationality of altruistic behaviour with the undergraduate students of any relevant specialization. Author’s Know Thyself method presented in the paper incorporates the classroom experiment, which utilizes the original Giving According to GARP experimental methodology in order to create storytelling about human nature. The expected learning outcomes when using this methodology include i) introducing the concept of homo oeconomicus; ii) showing the construction of untypical budget constraints for abstract goods; iii) presenting rationality tests based on real students' choices; iv) introducing the ethical-related concepts of effective altruism and pathological altruism in the context of economic rationality.