The Unified Economic-Philosophical Framework for Social Phenomena: Free Market Economy and the Expansion of Emotional-Interest Theory

Abstract

Affective-Natural Benefit Maximization and the Free Market Economy

This study develops a unified theoretical framework based on Affective-Natural Benefit Maximization (情性利益最大化), proposing that all social phenomena fundamentally arise from the free market economy. The core argument of this paper is that individual behavior is driven by the maximization of Affective-Natural Benefit (情性利益), which integrates both survival-based self-interest (性) and emotional fulfillment (情).

In a free market economy, individuals engage in dynamic strategic interactions driven by profit-seeking and loss avoidance, leading to the spontaneous emergence and optimization of social rules—including morality, ethics, and law. Through game-theoretic analysis and logical modeling, this study demonstrates how these social rules evolve as adaptive market mechanisms rather than static ideological constructs.

Furthermore, two core theoretical insights are proposed:

1. The Unification of Innate and Acquired Morality — Morality is not an external constraint but an evolutionary product of self-interest alignment in social cooperation.

2. The Instrumental and Adaptive Nature of Law — Law functions as a market-regulating mechanism, evolving dynamically to optimize trust, cooperation, and economic efficiency.

By bridging philosophy, economics, and game theory, this study redefines social rule formation as a self-organizing free market process. It provides a new explanatory model for individual motivation, social cooperation, and institutional evolution, offering theoretical guidance for economic policy, governance, and ethical frameworks in complex societies.

Keywords: Free Market Economy, Emotional Interest, Dynamic Game Theory, Moral Ethics, Social Rules, Unified Philosophy