Many liberals believe that government should not base its decisions on any particular conception of the good life. Many believe, further, that this principle of neutrality is best defended through appeal to some normative principle about autonomy. In this essay, I shall discuss the prospects of mounting one such defense. I say only “one such defense” because neutralists can invoke the demands of autonomy in two quite different ways. They can argue, first, that because autonomy itself has such great value, (...) the state can produce the best results by simply allowing each citizen to shape his own life; or they can argue, second, that even if non-neutral policies would produce the most value, the state remains obligated to eschew them out of respect for its citizens' autonomy. Here I shall discuss only the first and more consequentialist of these arguments. (shrink)

Reciprocity is a decisive behavioural rule resulting in successful co-operation or deterrence. In this paper, a dynamic model is proposed, where reciprocity is described by changes in altruistic (or malevolent) ties. Multiple steady states may exist in one of which there may be general cooperation (solidarity) and the other being one of universal malice (war of each individual against all other individuals). We apply our theory to a number of examples, illustrating that the agents’ initial preferences determine whether a steady (...) state of solidarity, selfishness or malice will emerge. (shrink)

Some researchers have attributed deviations from selfish behavior to fairness. Violations of fairness theories, however, are observed in experimental dictator games with transfer rates greater than 1 (a transfer of x from the dictator yields an income of tx for the beneficiary, where x < tx): the dictator’s final income is less than the beneficiary’s. We theoretically propose that dictator giving also involves altruism, further supporting our claim with empirical evidence from four separate samples of dictator game experiments. Our nonlinear (...) specification allows the relative measurement of the independent motives in dictator behavior. (shrink)

This article investigates the structure of trust in China and compares it with the U.S., using the 2000 and 2005 waves of the World Value Survey (WVS). We analyze two dimensions of trust - trust in people and trust in major companies. It is found that the level of trust has remained stable in China within the 5-year period. On the other hand, trust in major companies has declined dramatically in U.S. while trust in people has increased slightly. The structure (...) of trust in companies is different from trust in people. For both countries, individuals with higher education tend to have a higher level of trust. Individuals who are divorced tend to have lower trust in people. Individuals who think that other people are fair are more likely to trust in people. Preference for competition has a positive effect on trust in major companies. On the other hand, some differences between the two countries are observed. Perception of fairness does not affect trust in major companies in China, while it has a positive effect in U.S. in year 2006. Preference for equality has a negative effect on trust in major companies in U.S. but no significant effect in China. The pattern of trust and its changes over time may reflect differences in market conditions in the two economies. (shrink)

The first stage of the human embryonic stem(ES) cell research debate revolved aroundfundamental questions, such as whether theresearch should be done at all, what types ofresearch may be done, who should do theresearch, and how the research should befunded. Now that some of these questions arebeing answered, we are beginning to see thenext stage of the debate: the battle forproperty rights relating to human ES cells. The reason why property rights will be a keyissue in this debate is simple and (...) easy tounderstand: it costs a great deal of money todo this research, to develop new products, andto implement therapies; and private companies,researchers, and health professionals requirereturns on investments and reimbursements forgoods and services. This paper considersarguments for and against property rightsrelating to ES cells defends the followingpoints: (1) It should be legal to buy and sellES cells and products. (2) It should be legalto patent ES cells, products, and relatedtechnologies. (3) It should not be legal tobuy, sell, or patent human embryos. (4) Patentson ES cells, products, and related technologiesshould not be excessively broad. (5) Patents onES cells, products, and related technologiesshould be granted only when applicants statedefinite, plausible uses for their inventions. (6) There should be a research exemption in EScell patenting to allow academic scientists toconduct research in regenerative medicine. (7)It may be appropriate to take steps to preventcompanies from using patents in ES cells,products, and related technologies only toblock competitors. (8) As the field ofregenerative medicine continues to develop,societies should revisit issues relating toproperty rights on a continuing basis in orderto develop policies and develop regulations tomaximize the social, medical, economic, andscientific benefits of ES cell research andproduct development. (shrink)

This paper examines the morality of kidney markets through the lens of choice, inequality, and weak agency looking at the case for limiting such markets under both non-ideal and ideal circumstances. Regulating markets can go some way to addressing the problems of inequality and weak agency. The choice issue is different and this paper shows that the choice for some to sell their kidneys can have external effects on those who do not want to do so, constraining the options that (...) are now open to them. I believe that this is the strongest argument against such markets. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

This paper evaluates the current use of the Principal Agent Model (PAM) in accounting and finance, focusing on the agent'ss use of private information. The agent'ss behavioral norms in the the PAM deviate from commonly held ethical values in society, from models of man in conventional economic theory, and also from behavioral foundations of related business school fields like corporate strategy, business ethics, and human resource management. Still, it would be unwise to reject the PAM solely because of its distasteful (...) ethical assumptions. The model does appear to have predictive power, but its descriptive or normative qualities remain unexplored. The popularity of the PAM, with its extreme model of man, raises fundamental questions about the impact of this model on business school stakeholders and society at large. (shrink)

Trust is of great significance to the economic and social development of a country. In the case of China, the trust of rural women has undergone tremendous changes along with the development of rural areas. It is seen that the trust of rural women has changed from localized to generalized trust, and it is stated that the major factor leading to this transformation is education. To explore the phenomenon empirically, the current study uses the survey data of rural women sourced (...) from China Family Panel Studies over the year 2018. Through the ordered probit model, the study reveals that education plays a significant role in influencing rural women’s generalized trust and localized trust. Through mediation analysis, the study further reveals that reliance on Internet information, access to public resources, and income are the factors mediating the relationship between education and generalized trust. Besides, the outcomes further unveil that the impact of education on localized trust is stronger when the level of mobility is low. For robustness check, the current study additionally employs a regression discontinuity model. The overall findings elucidate that education is the major factor triggering the trust of rural women in China. The findings propose that policymakers in China should imply education-oriented strategies as individuals with higher levels of education are more inclined to trust others. (shrink)

Countries may be erring in the current trend towards relying entirely on volunteers to fulfil blood and plasma needs. Complementing uncompensated blood with compensated blood is vitally necessary not only effectively to meet the blood and plasma needs of most countries, but it is also ethically sound.

Sometimes, people who are otherwise eligible to donate blood are unduly deferred from donating. “Unduly” indicates a gap where a deferral policy misstates what exposes potential donors to risk and so defers more donors than is justified. Since the error is at the policy-level, it’s natural and understandable to focus criticism on reformulating or eliminating the offending policies. Policy change is undoubtedly the right goal because the policy is what prevents otherwise safe eligible donors from donating needed blood. But focusing (...) exclusively at the policy-level passes over a largely undiscussed question: if policy change takes time and there is an urgent need for blood now, then what should unduly deferred donors do in the meanwhile? Blood banks and federal agencies recommend that deferred donors donate their time or money until they become eligible, but blood is a non-fungible good: donated cash or volunteered time cannot replace a transfusion. Further, this request ignores that otherwise eligible donors could safely donate their blood in addition to their time and money. Here is the central question I will focus on in this paper: is a donor morally justified in lying on a questionnaire to donate blood if they justifiably believe that their blood poses no risk to a recipient and knows that honestly answering a donor questionnaire would unduly defer them from donating? (shrink)

Intra-organization and inter-organization collaboration and governance are becoming increasingly important for megaprojects. Different stakeholders form intricate links in a network structure. This study explores the role and effect of hybrid governance on complex network projects, such as urban rail transit projects. This included conducting a questionnaire survey with 116 professionals from organizations involved in urban rail transit projects and adopting structural equation modelling to analyze the data. The results analyzed the levels of intra-organization and inter-organization trust under the conditions of (...) power asymmetry and power sharing. A higher level of power asymmetry was associated with lower hybrid governance performance. In contrast, a higher level of power sharing is associated with better hybrid governance performance. The results are generalizable to other projects with complicated organizational and network relationships. (shrink)

Critics of investment citizenship often appeal to the idea that citizenship should not be commodified. This chapter clarifies how the different arguments in support of this Commodification Objection are best understood as versions of wider claims in the literature on the moral limits of markets (MLM). Through an analysis of the three main objections – The Wrong Distribution Argument, The Value Degradation Argument, and the Motivational Corruption Argument – it claims that these objections rely on flawed and partial interpretations of (...) the broader debates. As such, they do not in fact support the conclusions critics of investment citizenship wish to draw from them. The paper concludes that the commodification objection to investment citizenship should therefore be abandoned, and that normative resistance to the practice should be made on other grounds. (shrink)

Can taxation and the redistribution of wealth through the welfare state be conceived as a modern system of circulation of the gift? But once such a gift is institutionalized, regulated and sanctioned through legal mechanisms, does it not risk being perverted or corrupted, and/or not leaving room for genuinely altruistic motives? What is more: if the market’s utilitarian logic can corrupt or ‘crowd out’ altruistic feelings or motivations, what makes us think that the welfare state cannot also be a source (...) of corruption? To explain the standard answers to the abovementioned questions as well as their implications I will first re-examine two opposing positions assumed here as paradigmatic examples of other similar positions: on the one hand, Titmuss’s work and the never-ending debate about it; on the other, Godbout’s position, in-so-far as it shows how Titmuss’s arguments can easily be turned upside down. I will then introduce and reinterpret Einaudi’s “critical point” theory as a more complex and richer anthropological explanation of the problems and answers considered herein. Through the analysis of these paradigmatic positions I will develop two interrelated arguments. 1) The way these problems are posed as well as the standard answers to them are: a) subject to fallacies: the dichotomy fallacy and the fallacy of composition; b) too reductive and simplistic: we should at least try to clarify what kind of ‘gift’ or ‘corruption’ we are thinking about, and who or what the ‘giver’, the ‘corrupter’, the ‘receiver’ and/or the ‘corrupted’ party are. 2) The answers to these problems cannot be found by merely following a theoretical approach, nor can they be merely based on empirical evidence; instead, they need to take into account the forever troublesome, ambiguous and unpredictable matter of human freedom. (shrink)

In putting forth a view of economic agents as autonomous individuals driven by self-interest, mainstream economics precludes the possibility of gift. Gift could be found in non-market, “collectivist”, societies, where “informal” norms would include gift-giving. In this context, the paper argues that mainstream views regarding the impossibility of the concept of gift are inaccurate, via an analysis of conceptual and empirical contributions of other social sciences, notably sciences of mankind “par excellence” such as anthropology and philosophy. In particular, the paper (...) shows that critiques of mainstream views that are based on simple contrasts and qualifications do not provide conceptual instruments for a rigorous critique. This is also the case with the more “heterodox” views that underscore the unrealistic character of mainstream models of social interactions and norms. The mainstream arguments of self-interest and exchanges, based on expectations of future returns as universal traits of human beings, are indeed not easy to refute, including with the conceptual tools of other social sciences. This paper instead argues that a deeper analysis of concepts such as selfishness, interest, exchange, or the individual yields a more relevant critique of mainstream conceptions of gift—“the interest of whom?” and “exchange shaped by what?” being the pertinent questions. Other social sciences show that these concepts actually always presuppose the pre-existence of societies before that of individuals, and this is expressed by the many facets of the conceptualisations of the act of giving, whether societies are market or non-market ones. (shrink)

We propose a construct, the Trust Triangle, that highlights three primary mechanisms that provide ex post accountability for opportunistic behavior and motivate ex ante trust in economic relationships. The mechanisms are a society’s legal and regulatory framework, market-based discipline and reputational capital, and culture, including individual ethics and social norms. The Trust Triangle provides a framework to conceptualize the relationships between trust, corporate accountability, legal liability, reputation, and culture. We use the Trust Triangle to summarize recent developments in the empirical (...) finance literature that examine how trust is formed and how trust, or its absence, affects financial markets, firm performance, and the incidence of financial fraud. To date, most studies examine only one leg of the Trust Triangle in isolation. The evidence, however, indicates that all three legs of the Trust Triangle have first-order effects on a wide range of financial outcomes and that they are interrelated. Attempts to model trust and trustworthiness that do not incorporate all three aspects of the Trust Triangle will therefore miss essential aspects of the basic economic problem of how counterparties overcome the risks of moral hazard, asymmetric information, and opportunism to engage in mutually beneficial exchange and production activities. We focus especially on culture-related mechanisms, a recently developed area in empirical finance research that has potential to influence the more established research on laws and reputation. (shrink)

There is a widespread consensus that a commodification of body parts is to be prevented. Numerous policy papers by international organizations extend this view to the blood supply and recommend a system of uncompensated volunteers in this area—often, however, without making the arguments for this view explicit. This situation seems to indicate that a relevant source of justified worry or unease about the blood supply system has to do with the issue of commodification. As a result, the current health minister (...) of Ontario is proposing a ban on compensation even for blood plasma—despite the fact that Canada can only generate 30 % of the plasma needed for fractionation into important plasma protein products and has to purchase the rest abroad. In the following, I am going to suggest a number of alternative perspectives on the debate in order to facilitate a less dogmatic and more differentiated debate about the matter. Especially in light of the often over-simplified notions of altruism and commodification, I conclude that the debate has not conclusively established that it would be morally objectionable to provide blood plasma donors with monetary compensation or with other forms of explicit social recognition as an incentive. This is especially true of donations for fractionation into medicinal products by profit-oriented pharmaceutical companies. (shrink)

Drawing on a social construction theory of ownership in biological material this paper discusses which differences in biological material might motivate differences in treatment and ownership rights. The analysis covers both the perspective of the person from whom the material originates and that of the potential recipient. Seven components of bundles of rights, drawing on the analytical tradition of Tony Honoré, and their relationship to various types of biological material are investigated. To exemplify these categories the cases of a heart, (...) a kidney, stem cells and hair are used. (shrink)

Public interest theory has argued that lack of trust in companies may reduce support for free markets. The literature did not address, however, the underlying causes of lack of trust and support of free markets in customer’s perceptions of virtuousness in economic actors. Combining public interest theory with virtue theory and stakeholder trust theory of organizations, we surmise that if customers perceive that employees of companies have insufficient due care for customers’ interests, the perceived trustworthiness of those companies will be (...) low. Customers will then be more inclined to support government regulation in that particular sector or industry. In this paper, we test the relevance of these relationships for the banking sector using a representative sample of 5844 respondents in the Netherlands. We find that if bankers are perceived as persistent in their due care for customers, this encourages a perception that banks are trustworthy, which in turn induces support for free markets in banking and reduces the call for government regulation. An important management implication of our research is that banks should foster due care by means of employee-virtue training programs to enhance trust, thus generating more support for free market operations in the banking sector. (shrink)

This paper uses the evolutionary frame provided by the Victorian jurist Henry Sumner Maine to describe the process by which trust can be seen as the product of a gradual development that starts with small-scale communities and later allows market exchanges to develop themselves. I also argue, using the work of Elinor Ostrom (1990), that trust emerges first within small-scale communities, where first- and second-degree collective action problems need to be resolved. The development of a social disposition to trust is (...) closely linked with an institutional context that encourages individuals to take the externalities of their actions into account. This is made possible by customary mechanisms, as the development of social trust at this stage cannot rely on a mighty “Leviathan”. Therefore, this paper questions the claim that social trust is the product of market exchanges. Market exchanges might favor the further growth of social trust, hands in hands with the right institutional frame. However, this growth is not just the transposition of a previously acquired disposition to trust. The work of Henry Sumner Maine interestingly underlines the importance of the co-development of institutions and trust, from its origin in small communities to its expansion to market exchanges. Both Ostrom’s and Maine’s perspectives underline the fact that trust and trustworthiness are complementary and question a-rational perspectives on trust. This paper also elaborates on the claim, coming from the literature on contract law, that focusing on sanctioning mechanisms can be highly counterproductive. (shrink)

Does the level of marketing activity in a country contribute to societal well-being or quality of life? Does economic efficiency also play a positive role in societal well-being? Does economic efficiency also moderate or mediate the marketing activity effect on societal well-being? Marketing activity refers to the pervasiveness of promotion expenditures and number of retail outlets per capita in a country. Economic efficiency refers to the extent to which the economy is unhampered by corruption, burdensome government regulation, and a large (...) informal economy. We used secondary data from the World Bank and other statistical sources to answer these questions. Our study findings suggest that both marketing activity and economic efficiency contribute positively to societal well-being, and that economic efficiency plays more of a mediator than moderator role between marketing activity and societal well-being. The public policy implication of this study is that increases in marketing activity and economic efficiency in countries characterized as low on both dimensions should significantly increase the quality of life in those countries. (shrink)

In the late summer and fall of 1983 articles appeared in such publications as the New York Times, Fortune Magazine, and Science News telling of attempts to set up an agency for the selling of kidneys from living donors. The shortage of organs, especially of kidneys where the transplantation success has increased quite markedly over the past decade, has become something of a crisis. A situation of increased need and inadequate supply is also becoming a problem for such substances as (...) human bone marrow, for use in the treatment of immune and blood diseases, and large quantities of human plasma for use by hemophiliacs. Obtaining a kidney for a patient in renal failure was difficult in the past because adequate matching is likely only between very close relatives. Now with new immunosuppressant drugs such as cyclosporine, close matches have become less important. Cadaver organs or marrow from unrelated living donors can be used with far greater success. The supply problem is still immense and the literature is filled with suggestions for appropriate and efficient means of organ acquisition. One of the latest suggestions involves a system of salvaging based on implied consent of deceased donors. The organs would be taken without asking directly for permission from family. The relatives would have the right to object to the organ removal, but unless they did so, the organ would be taken when needed. (shrink)

The widespread association of business with maximising profit has tended to obscure its social dimension. Indeed some writers doubt whether business can ever be socially engaged and others claim that it should not. This paper seeks to show that besides seeking profit businesses can properly practise social responsibility, defined as involving themselves in their communities and engaging in non-profit activities. It explores the ways in which business social responsibility can contribute to social capital, the resources created by social bonds which (...) members of a society can draw upon and which make it possible to achieve otherwise unattainable ends.2. (shrink)

Data from surveys indicate that people, in general, do not trust others. On the other hand, in one-shot trust games, where the player decides whether to send money to an anonymous partner, the actual rate of trust is relatively high. In two experiments, we showed that although reciprocity expectations and profit maximization matter, they are not decisive for trusting behaviour. Crucial factors that motivate behaviour in trust games seem to be altruism and a type of moral obligation related to a (...) social norm encouraging cooperative behaviour. Finally, we were able to divide participants into specific profiles based on amount of money transferred to the partner, altruistic motivation, and belief in partners’ trustworthiness. This shows that the trust game is differently perceived and interpreted by different participants. (shrink)

ABSTRACT The late Richard Titmuss made a persuasive case against allowing the sale of human blood in his book, The Gift Relationship. His arguments have been developed further by Peter Singer in recent articles. While the issues of quantity and quality of blood under market and non‐market systems have received much attention, the moral and political aspects of the Titmuss‐Singer case have gone relatively unexamined. First, I question their claim that a donation‐only system promotes greater freedom, which rests on a (...) confusion of liberty and opportunity. Next, I consider reasons for doubting their view that altruism is fostered significantly more under the non‐market approach. Finally, I survey recent developments in the quantity‐quality debate and possible implications of the blood controversy for national health care. (shrink)

Post-conflict economies often prove daunting for foreign investors. Many of these nations are reaching out to diasporans, emigrants, and their descendants living abroad, for much-needed foreign investment capital. Little is known about why diasporans invest in their countries of origin. Recent scholarly inquiry regarding investment decision making has suggested that non-pecuniary, psychological concerns often motivate investment decisions. We develop a conceptual model identifying three types of investment return expectations — financial, emotional, and those related to social status — that may (...) drive diaspora investment interest. We contend that the psychological realities and social-status structure of the diaspora experience generate greater salience for non-pecuniary investment motivations, particularly when the origin country emerges from a period of conflict. We outline an agenda for future research and discuss the implications of our model for policies seeking to promote peace utilizing diaspora investment. (shrink)

Are socialists best regarded as those who are most truly and consistently committed to democracy, under modern industrial conditions? Is the underlying issue that divides liberals from socialists the degree of their wholeheartedness in affirming the ideal of a democratic society? On the liberal side, Friedrich Hayek has remarked: “It is possible for a dictator to govern in a liberal way. And it is also possible that a democracy governs with a total lack of liberalism. My personal preference is for (...) a liberal dictator and not for a democratic government lacking in liberalism.” No doubt many socialists would wish to quibble with Hayek's free-market oriented conception of liberalism. But I am wondering whether the conceptual map implicit in Hayek's remark is apt. Hayek appears to assume that there are two independent lines of division, one marking greater and lesser commitment to liberal values, the other marking greater and lesser commitment to democratic procedures. According to the conception of socialism as democracy that I wish to examine, a better picture of the political landscape would show one line of division with gradations indicating greater and lesser commitment to democracy. On this continuum, socialists are located at the extreme pro-democratic end, those who favor autocracy at the other end, and liberals somewhere in the middle. The analyst who finds this latter conceptual picture the more illuminating of the two will say that Hayek reveals his rejection of socialism by being less than wholehearted in his support of democracy. (shrink)

We examine the association between societal trust and the levels of CEO compensation and the proportion of equity-based compensation of 897 firm-years from 18 countries over the 2007–2013 period. We find both the levels of CEO compensation as well as the proportion of equity-based compensation to be lower in countries with higher levels of societal trust. This suggests that costly regulations on CEO compensation may not be as necessary in jurisdictions with higher levels of societal trust. We also examine the (...) association between pay disparity and societal trust. Consistent with our finding of lower pay at the CEO rank, we find pay disparities are lower in countries with higher levels of societal trust. (shrink)

Incentives are typically conceived as a form of trade, and so voluntariness appears to be the only ethical concern. As a consequence, incentives are often considered ethically superior to regulations because they are voluntary rather than coercive. But incentives can also be viewed as one way to get others to do what they otherwise would not; that is, as a form of power. When incentives are viewed in this light, many ethical questions arise in addition to voluntariness: What are the (...) responsibilities of the powerful in using incentives? Can incentives be manipulative or exploitative, even if people are free to refuse them? Like all other forms of power, incentives can be abused. This paper develops criteria for distinguishing their legitimate from their illegitimate uses, viz. legitimacy of purpose, voluntariness, and effect on character. The criteria are then applied to three cases: plea bargaining, recruiting medical research subjects, and motivating children to learn. Thinking of incentives in terms of.. (shrink)

Order ethicists favour incentives as a means for making moral progress but largely ignore an alternative method, namely, nudging, which has come to prominence through the work of behavioural scientists in recent years. In this paper, we suggest that this is a mistake. Order ethicists have no reason to ignore nudging as an alternative method. Arguments they might press against it include worries about paternalism, manipulation, autonomy, and unintended bad consequences. These are, we argue, largely unfounded insofar as they involve (...) misconceptions or affect incentives as well. In particular, we contend that only some, but not all, nudges are paternalistic, manipulative, and autonomy-reducing. The same is true of incentives. Also, both nudges and incentives can have unintended bad consequences. Therefore, order ethicists cannot endorse arguments against nudges without undermining their favourable view of incentives. In addition, there might be positive reasons to prefer nudges to incentives, for instance, when they are more freedom-preserving, more effective, cheaper, easier to implement, or less inequality-inducing than the latter. (shrink)

In The Community of Advantage, Robert Sugden reconstructs and defends an account of the liberal tradition in normative economics in the light of the findings of Behavioural Economics. In...

I connect commodification arguments to an empirical literature, present a mechanism by which commodification may occur, and show how this may restrict the range of goods and services that are subject to commodification, therefore having implications for the use of commodification arguments in political theory. Commodification arguments assert that some people’s trading a good or service can debase it for third parties. They consist of a normative premise, a theory of value, and an empirical premise, a mechanism whereby some people’s (...) market exchange affects how goods can be valued by others. Hence, their soundness depends on the existence of a suitable candidate mechanism for the empirical premise. The ‘motivation crowding effect’ has been cited as the empirical base of commodification. I show why the main explanations of motivation crowding – signaling and over-justification – do not provide mechanisms that could underpin the empirical premise. In doing this, I reveal some requirements on any candidate me... (shrink)

We study whether greater social trust is associated with a lower incidence of corporate misconduct. Both social norm and network theory suggest that social trust can affect managerial behavior and reduce the likelihood of misconduct behavior. Consistent with this prediction, we find that social trust is negatively associated with corporate misconduct behavior. Moreover, we show that, when media coverage is higher, the negative relation between social trust and corporate misconduct behavior is more pronounced. Further analyses suggest that social trust can (...) help mitigate both disclosure-related and nondisclosure-related misconduct. (shrink)

A recurring question about cost - benefit analysis concerns its scope. CBA is a decision-making method frequently employed in environmental policy-making, in which things which have no market price are treated as if they were commodities. They are given a monetary value, a form of price. But it is widely held that some things cannot be meaningfully priced, thus substantially limiting the scope of CBA. The aim of this paper is to test some aspects of this broad claim, focusing on (...) problems of incomparability and incommensurability. In particular, the role of rough equality as a putative form of comparison is investigated. I argue that while an assessment of the full significance of rough equality for practical decision-making awaits resolution of a number of important technical questions, it does not provide a strong enough form of comparison to support CBA. (shrink)

The article analyses experimental “solidarity games” with two benefactors and one beneficiary. Depending on their motive for giving—e.g., warm glow, altruism, or guilt—the benefactors’ response functions are either constant, decreasing, or increasing. If motives interact, or if envy is a concern, then more complex (unimodal) shapes may emerge. Controlling for random utility perturbations, we determine which and how many motives affect individual decision making. The main findings are that the motives of about 75% of the subjects can be identified fairly (...) sharply, that all of the motives discussed in the literature co-exist in the population, and that for any given individual no more than two motives (out of six motives considered overall) are identified. We conclude that a unifying motive for solidarity cannot be derived even when we allow for individually heterogeneous parameterization: different subjects give for different reasons and all existing social preference theories are partially correct. (shrink)

We argue that the declining female enrollment in graduate business schools is a manifestation of gender bias in business education. The extant conceptual foundation of business education is one which views business activity in terms of a game with fixed and wholly material objectives. This concept betrays an underlying value system that reflects a male orientation. Business education is not merely amoral, therefore, but is gender biased. We suggest that business educators adopt a broadened behavioral rubric. Virtue-ethics theory provides such (...) a rubric. (shrink)

Exploring the locality stereotype with respect to CEO’s trustworthiness, we find that firms whose CEOs are from more reputable hometowns have a higher likelihood of stock price crashes, indicating the presence of a CEO “Trust Exploitation” effect, i.e. a high-trust identity does not guarantee managerial ethics; to the contrary, it could tempt CEOs to abuse outsiders’ trust, camouflage their misconducts and conceal adverse information more severely. The effect of CEO’s perceived trustworthiness on tail risk of stock price remains robust when (...) controlling for the region-level trust of firm’s headquarters, and in 2SLS regression with an instrumental variable. Further, CEO’s “Trust Exploitation” effect is more prominent among firms with lower disclosure quality, higher capital market pressure and higher CEO incentives. Our findings highlight an unexplored imperfection of individual-level trustworthiness as a reliable substitute for formal monitoring devices in terms of improving stock market stability. (shrink)

In ordinary circumstances, human actions have a myriad of unintended and often unforeseen consequences for the lives of other people. Problems of pollution are serious examples, but spillovers and side effects are the rule, not the exception. Who knows what consequences this essay may have? This essay is concerned with the problems of justice created by spillovers. After characterizing such spillovers more precisely and relating the concept to the economist's notion of an externality, I shall then consider the moral conclusions (...) concerning spillovers that issue from a natural rights perspective and from the perspective of welfare economics supplemented with theories of distributive justice. I shall argue that these perspectives go badly awry in taking spillovers to be the exception rather than the rule in human interactions. I. Externalities Economists have discussed spillovers under the heading of “externalities.” To say this is not very helpful, since there is so much disagreement concerning both the definition and significance of externalities. (shrink)

The article argues that altruistic giving based on anonymity, which is expected to promote social solidarity and block trade in human body parts, is conceptually defective and practically unproductive. It needs to be replaced by a more adequate notion which responds to the human practices of giving and receiving. The argument starts with identification of the main characteristics of the anonymous altruistic donation: social separation of the organ donor from the recipient, their mutual replaceability, non-obligatoriness of donation, and non-obligatoriness of (...) reciprocation on the recipient’s part. Since these characteristics are also central to typical market relations, anonymous altruistic donation not only cannot promote solidarity but may encourage proposals for markets of transplantable organs. Thus, transplant ethics needs to be reframed. It needs to be rooted in, rather than promote, the practices of giving and receiving known to human societies. As the basis for such reframing, the idea of sharing in another’s misfortune is proposed. It relies on the human practices of giving and receiving and, with appropriate regulatory safeguards, can provide a better conceptual basis for blocking commercial exchanges of human body parts. (shrink)

Since the early 1970s, Marcel Mauss’s Essai sur le Don, translated into English as The Gift in 1954, has been a standard reference in the social science and bioethical literature on the use of human body parts and substances for medical and research purposes. At that time, three social scientists—political scientist Richard Titmuss in the United Kingdom and sociologist Renée C. Fox working with historian Judith Swazey in the United States—had the idea of using this concept to highlight the fundamental (...) structure of the biomedical practices they were studying, respectively, blood donation, and hemodialysis and organ transplantation. The fact that these first applications of Mauss’s essay should emerge in English- rather than in French-speaking countries raises the question of what the translation of the essay, and notably of the word don as gift, may have to do with this fact. Reading Mauss in translation undoubtedly inspired a seminal approach to interpreting medical and research practices based on bodily giving. This article posits that something may have also been lost: a much broader concept of giving with unquestionable links to the Durkheimian concept of solidarity, which Mauss conceptualizes not only as an obligation but also as a liberty to give. (shrink)

This article defends Richard Titmuss''s argument, and PeterSinger''s sympathetic support for it, against orthodoxphilosophical criticism. The article specifies thesense in which a market in blood is ``dehumanising'''' ashaving to do with a loss of ``imagined community'''' orsocial ``integration'''', and not with a loss of valued or``deeper'''' liberty. It separates two ``domino arguments''''– the ``contamination of meaning'''' argument and the``erosion of motivation'''' argument which support, indifferent but interrelated ways, the claim that amarket in blood is ``imperialistic.'''' Concentrating onthe first domino argument (...) the article considers theview that monetary and non-monetary meanings of thesame good can co-exist given the robustness of certainkinds of relationship and joint undertakings withinwhich gifts can figure. It argues that societalrelationships are vulnerable or permeable to theeffects of the market in a way that those constitutiveof the personal sphere are not.General, more broadly political questions remainunanswered but the core of Titmuss''s original andchallenging argument remains and can be presented ina defensible form. (shrink)

Altruism is a popular economic explanation for a wide range of pro-social decisions and actions. It has been applied frequently in several different streams of literature, and is a descriptively compelling model of behavior. This paper provides a theoretical framework for the existence of ordinal and cardinal altruistic value functions, as well as altruistic utility functions, based on an altruistic preference relation. Representation theorems are developed to specify relatively weak conditions under which altruistic value and utility functions can be shown (...) to exist. In addition, conditions that lead to additive forms of these functions are provided. (shrink)

This paper is a commentary on Koplin’s “From Blood Donation to Kidney Sales”. While appreciative of his paper, it argues that an argument from social solidarity to a Titmussian donor system is problematic. It reviews weaknesses in Titmuss, discusses problems about Titmussian blood donation as a vehicle for solidarity, and explores problems about extending a Titmussian approach to organs.

Drawing on empirical evidence in medicine, economics, law, and anthropology, I argue that a market is uniquely capable of meeting the demand for transplantable kidneys, and that it may be arranged so as to operate safely. The welfare gains, expected to accrue to both vendors and recipients, are sufficient to justify sales. Having spelled out the considerations recommending a kidney market, I address the most forceful objections facing the proposal. Despite its currency, the claim that incentives will crowd out altruistic (...) donors and result in a decrease in supply is empirically unsupported and predicated on an implausible view of donorsâ motives. A host of objections claim vendorsâ will not give informed consent. Many such objections identify easily remediable problems, or impose unreasonable standards â standards that would rule out morally permissible kidney donation. And all presuppose a model of morally transformative consent that, I argue, is deficient. Two further challenges point to harms inflicted on those who do not participate in the market. Some claim that those in poverty will be subject to harmful social and legal pressure to vend. This objection fails to distinguish between being pressured to perform a specific act, and being under general economic pressure and having the option to perform an act. It, moreover, presupposes vending more common than is possible. Others worry that the market will give rise to unfair pecuniary externalities. This objection also presupposes that kidney sales will occur more often than is possible. But more importantly, the normative consideration that is supposed to make such externalities especially objectionable, in fact, recommends allowing sales. I also make a political case for kidney sales. I offer an account of the stateâs proper role in the market. I begin with a conception of democratic equality according to which the state is responsible to secure for its citizens the preconditions for democratic participation. I then show that this end would be promoted were the state to end the current prohibition on sales. (shrink)

Responding to criticism by Gordon Sollars and Frank Englander, this paper highlights a significant tension in recent debates over the ethics of global supply chains. This tension concerns the appropriate focus and normative frame for these debates. My first goal is to make sense of what at first reading seems to be a very odd set of claims: that valuing free, autonomous, and respectful markets entails a “fetish for philosophical purity” that is inconsistent with a moral theory that finds no (...) wrong in harming workers, including the least advantaged among them. Sollars and Englander reach these conclusions, I believe, because their criticism assumes and relies upon the presumption of a global prioritarian frame, one which focuses individual welfare, and which they then apply at the level of individual political and economic actors. Much of Benjamin Powell and Matt Zwolinski’s work, I continue, including their criticism of political and economic activism and Powell’s indictment of organized labor, relies on a similar frame—while expanding the harms to include the freedom and autonomy of would-be sweatshop workers. This prioritarian frame, I argue, is particularly poorly suited to discussion of the ethical responsibilities of individual economic and political actors. We ought to reject it. To make progress on debates over global sweatshops, and the ethics of global supply chains in general, we need a better frame, and better standards of freedom and autonomy, than those invoked by many prominent defenders of sweatshops. (shrink)

Market relationships built on trust and governed by commonly accepted ethical norms are generally viewed as economically positive and beneficial to both parties; however, such relationships are occasionally the situs of a variety of unexpected and ethically questionable behaviours. This study examines the narratives provided by participants who share their experience as an exchange partner in a market relationship or as a close observer of an exchange partner in a market relationship to identify the use of short‐term deceptions and ethics (...) defections in managing these relationships. The data demonstrate a number of instances in which one exchange partner is willing to deceive another. Situations identified include deceiving current customers, new customers, current suppliers, governmental bodies, and employees and managers for the purposes of: protecting an existing relationship, pursuing a new relationship, ensuring product or service quality, and exerting control over a relationship. This research develops a general analytic framework for the occurrence of deception and defection from ethical norms in market relationships from elements of the study participants' narrative reports. This framework can be used by future researchers to design studies that examine the specific antecedents of these behaviours. (shrink)