Social Interactions, Identity and Well-Being Program

CIFAR’s Social Interactions, Identity and Well-Being program challenges fundamental assumptions of traditional economics. By incorporating research from the social sciences, program members have demonstrated that, contrary to popular belief, money is not the sole measure of happiness and well-being.

In fact, social factors such as identity, sense of community, family and friends, good health, and good government appear to be far more important to people’s sense of well-being than their income. Yet none of these are included in traditional economic models.

Standard economics assumes people are logical thinkers who make decisions in a consistent manner to maximize their happiness, as though life were a game of chess. CIFAR’s program seeks a more realistic picture of how people behave.

Program members use theoretical and empirical research from many sources to create an expanded formula for measuring well-being. This new formula retains the standard wealth-oriented indicators of well-being, but adds the sociological concept of identity as a separate and distinct variable.

For example, making a point of creating a sense of inclusion can improve performance in the workplace more than the standard practice of providing bonuses and penalties.  This works in other environments as well, including schools and universities.

Program members are using epidemiological and experimental methods to find new, more accurate ways to measure people’s satisfaction. The results of CIFAR’s Social Interactions, Identity and Well-Being research has the potential to effect sweeping changes to both economic theory and practice.