DOES FRIENDSHIP STEM FROM ALTRUISM? ADAM SMITH AND THE DISTINCTION BETWEEN LOVE-BASED AND INTEREST-BASED PREFERENCES

Abstract

Friendship-and-love expresses musings about well-being—while the object of the musings, i.e., “well-being,” is the economist’s substantive satisfaction. Insofar as altruism is about well-being and not the musings, it cannot be subsumed under friendship-and-love. However, what is the basis of the difference between the economist’s substantive satisfaction and friendship-and-love? The answer can be found in Adam Smith’s Theory of Moral Sentiments, chapter 2: how “mutual sympathy” differs from substantive satisfaction. Smith scholars generally miss the uniqueness of “mutual sympathy” and, indeed, fold it under Smith’s “sympathy” (and “empathy”)—with one exception. Robert Sugden highlights the uniqueness of mutual sympathy. However, he goes to the other end, that is, he folds Smith’s sympathy-and-empathy under mutual sympathy. This paper aims to avoid the folding in either direction. Indeed, it argues that each fellow-feeling deals with a question that is orthogonal to the other. Mutual sympathy originates love-based sociality (friendship-and-love), which can be juxtaposed to interest-based sociality, i.e., substantive satisfaction, such as altruism. These genera of sociality are about the nature of satisfaction or preferences, and hence in contrast to sympathy-and-empathy that are basically about judgments. As judgments, sympathy-and-empathy are ultimately about the nature of decision making, irrespective of whether the decisions concerning love-based or interest-based preferences.