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Sahlins' work has focused on demonstrating the power that culture has to shape people's perceptions and actions. He has been particularly interested to demonstrate the culture has a unique power to motive people that is not derived from biology. His early work focused on debunking the idea of 'economically rational man' and to demonstrate that economic systems adapted to particular circumstances in culturally specific ways. After the publication of Culture and Practical Reason in 1976 his focus shifted to the relation between history and anthropology, and the way different cultures understand and make history. Although his focus has been the entire Pacific, Sahlins has done most of his research in Fiji and Hawaii.
In the late 1990s Sahlins became embroiled in a heated debate with Gananath Obeyesekere over the details of Captain James Cook's death in the Hawaiian_Islands in 1779. At the heart of the debate was how to understand the rationality of indigenous people. Obeyesekere insisted that indigenous people thought in essentially the same way as Westerners and was concerned that any argument otherwise would paint them as 'irrational' and 'uncivilized'. Sahlins, on the other hand, was critical of Western thought and argued that indigenous cultures were distinct and equal to those of the West.
About the controversy with Obeyesekere (See also Death of Cook article, about the 2004 re-discovery of the original painting of the incident by John Cleveley , showing a less idealised Cook):