Being 'too nice' to others can actually make everyone involved, including the person you’re helping, worse off.
April 14, 2026
Original Paper
GANDHI VS. NASH: EMPATHY ALTERS INCENTIVES WITHOUT TRANSFERRING CONTROL
SSRN · 6569717
The Takeaway
In strategic scenarios, high levels of empathy can alter incentives in ways that lead to outcomes where no one wins. This 'empathy trap' suggests that altruistic behavior can be mathematically counterproductive for society compared to self-interest.
From the abstract
Empathy and altruism are often seen as foundations of pro-social behavior and improved collective outcomes, but they can conflict with strategic incentives. This paper shows that increasing concern for others can lead to equilibrium outcomes where all agents are worse off, including those whose welfare is being internalized. As preferences become more empathetic, from selfish to utilitarian to altruistic preferences, equilibrium welfare may change non-monotonically for every individual and for a