Social preference, system design and cooperation efficiency

The economic hypothesis has been criticized since its birth. After realizing the many defects in the hypothesis of self-interested economic people, many scholars not only put forward various doubts, put forward the "Smith paradox", but also gave many reasonable explanations, believing that the "Smith paradox" does not exist. This paper tries to interpret the "Smith paradox" systematically from the perspective of "moral sentiment" through the concept of "situation", and tries to construct a new theoretical framework to integrate the different social preferences in different situations with the system design, so as to optimize the individual welfare and overall social welfare.