Expected-utility theory has been a popular and influential theory in philosophy, law, and the social sciences. While its original developers, von Neumann and Morgenstern, presented it as a purely predictive theory useful to the practitioners of economic science, many subsequent theorists, particularly those outside of economics, have come to endorse EU theory as providing us with a representation of reason. But precisely in what sense does EU theory portray reason? And does it do so successfully? There are two strikingly different (...) answers to these questions in the literature. On the one hand, there is the view of people such as David Gauthier that EU theory is an implementation of the idea that reason's only role is instrumental. On the other hand, there is the view suggested by Leonard Savage that the theory is a “formal” and noninstrumental characterization of our reasoning process. (shrink)

Moral disagreement about public policies—issues such as abortion, affirmative action, and health care—is a prominent feature of contemporary American democracy. Yet it is not a central concern of the leading theories of democracy. The two dominant democratic approaches in our time—procedural democracy and constitutional democracy—fail to offer adequate responses to the problem of moral disagreement. Both suggest some elements that are necessary in any adequate response, but neither one alone nor both together are sufficient. We argue here that an adequate (...) conception of democracy must make moral deliberation an essential part of the political process. What we call “deliberative democracy” adds an important dimension to the theory and practice of politics that the leading conceptions of democracy neglect. (shrink)

One of the principles on how to act under moral uncertainty, My Favourite Theory, says roughly that a morally conscientious agent chooses an option that is permitted by the most credible moral theory. In defence of this principle, we argue that it prescribes consistent choices over time, without relying on intertheoretic comparisons of value, while its main rivals are either plagued by moral analogues of money pumps or in need of a method for making non-arbitrary intertheoretic comparisons. We rebut the (...) arguments that have been levelled against My Favourite Theory and offer some arguments against intertheoretic comparisons of value. (shrink)

In order to account for non-traditional preference relations the present paper develops a new, richer framework for preference relations. This new framework provides characterizations of non-traditional preference relations, such as incommensurateness and instability, that may hold when neither preference nor indifference do. The new framework models relations with swaps, which are conceived of as transfers from one alternative state to another. The traditional framework analyses dyadic preference relations in terms of a hypothetical choice between the two compared alternatives. The swap (...) framework extends this approach by analysing dyadic preference relations in terms of two hypothetical choices: the choice between keeping the first of the compared alternatives or swapping it for the second; and the choice between keeping the second alternative or swapping it for the first. (shrink)

Many paradoxes have been revealed in the theory of democracy over the years. This article points to yet another paradox at the heart of democracy, whether in its aggregative or deliberative form.The paradox is this: If you are dealing with a large and heterogeneous community, in which people's choices are menu-sensitive in diverse ways, and if people's cognitive capacities preclude them from considering all items on a large menu simultaneouslythen individuals’ choices may be unstable and manipulable depending on how choices (...) over cognitively-manageable subsets of the menu are partitioned and sequenced, 1 and the collective choice may be likewise unstable and manipulable in consequence.Aggregative democracy casts this argument in terms of ‘alternatives’ on the menu for choice. Deliberative democracy casts this argument in terms of ‘considerations’. The same formal problem arises in both cases. (shrink)

The debate on political constitutionalism has entirely neglected the constitution-making dimension. This is probably due to the fact that constitution-making usually brings with it undesirable outcomes such as the entrenchment of rights or structures. These outcomes do not respect reasonable disagreement among citizens because they violate the only fair system for settling disagreement: majority rule and equal voting rights. This article argues that political constitutionalists may regret the absence of any claim about constitution-making. Either they are overlooking certain problems inherent (...) to the electoral process that is supposed to tackle disagreement or, even worse, they are downplaying the entrenching effect of ordinary political processes by ignoring the redemptive properties of constituent power. In both cases, their claims undermine the political dimension of constitutionalism. (shrink)

Social epistemology is a many-splendored subject. Different theorists adopt different approaches and the options are quite diverse, often orthogonal to one another. The approach I favor is to examine social practices in terms of their impact on knowledge acquisition . This has at least two virtues: it displays continuity with traditional epistemology, which historically focuses on knowledge, and it intersects with the concerns of practical life, which are pervasively affected by what people know or don't know. In making this choice, (...) I am not blind to the allure of alternative approaches. In this paper I explain and motivate the knowledge-centered approach by contrasting it with a newly emerging alternative that has a definite appeal of its own. According to this alternative, the chief dimension of social epistemological interest would be rationality rather than knowledge. (shrink)

Increasingly, it is accepted wisdom for agricultural scientists to get feedback from indigenous peoples—peasants—about new improved seeds and biotechnologies before their official release from the experiment station. What is not yet accepted wisdom is the importance of cognitive science to research on farmer decision making, especially of the type “Why don't they adopt.” In this paper, the impact of the cognitive revolution on models of farmer decision making is described, and decision making models before and after the cognitive revolution are (...) contrasted. An example of a decision model after the cognitive revolution is given by the Malawi farmer's decision whether to use chemical fertilizers or organic fertilizers or both. Results of testing the model show that in Malawi, smallholders' lack of capital and credit are more important factors constraining use of chemical fertilizers than are indigenous beliefs in organic fertilizers or fears of a future dependency on chemicals. (shrink)

Arrow’s impossibility result stems chiefly from a combination of two requirements: independence and fixity. Independence says that the social choice is independent of individual preferences involving unavailable alternatives. Fixity says that the social choice is fixed by a social preference relation that is independent of what is available. Arrow found that requiring, further, that this relation be transitive yields impossibility. Here it is shown that allowing intransitive social indifference still permits only a vastly unsatisfactory system, a liberum veto oligarchy. Arrow’s (...) argument for independence, though, undermines any rationale for fixity. (shrink)

Welfarism, a position which for a long time enjoyed a hegemonic status in the field of normative economics, holds that the sole ethically relevant information for assessing social states of affairs pertains to individual utilities. Serge-Christophe Kolm presents the Equal-Labour Income Equalization model very explicitly and repeatedly as breaking with the still dominant tradition of welfarism. This paper explores the meaning of this distancing from welfarism found in the ELIE model. After having provided conceptual clarifications concerning both ELIE and welfarism, (...) we discuss various opposing aspects of this model of income redistribution to welfarism. We show that the refusal of welfarism by the ELIE model does not depend mainly on its axiomatic features, but on its deontological perspective. (shrink)

When voters’ preferences on candidates are mutually coherent, in the sense that they are at all close to being perfectly single-peaked, perfectly single-troughed, or perfectly polarized, there is a large probability that a Condorcet Winner exists in elections with a small number of candidates. Given this fact, the study develops representations for Condorcet Efficiency of plurality rule as a function of the proximity of voters’ preferences on candidates to being perfectly single-peaked, perfectly single-troughed or perfectly polarized. We find that the (...) widely used plurality rule has Condorcet Efficiency values that behave in very different ways under each of these three models of mutual coherence. (shrink)

This paper discusses justice-constrained libertarian claims that were proposed as a way to circumvent the impossibility of the Paretian liberal. Since most of the results are negative in character, we suggest an alternative route: A requirement on the structure of individual orderings should be combined with the idea that under particular circumstances individual decisiveness should be controlled by higher-order principles.

We investigate the family of concepts that an agent comes to know through a set of defining features, and examine the role played by these features in the process of categorization. In a qualitative framework, categorial membership is evaluated through an order relation among the objects at hand, which translates the fact that an object may fall more than another under a given concept. For concepts defined by their features, this global membership order depends on the degree with which each (...) feature applies to the objects of the universe. The passage from these individual membership degrees to a global membership order poses a problem analogous to vote aggregation in social choice theory. This similarity leads to an original solution that is particularly well-adapted to the framework of cognitive psychology. The resulting membership order extends to compound concepts, and provides a good description of the guppy paradox and the conjunction effect. (shrink)

In modern economics, the use of sympathy and empathy shows significant ambiguity. Sympathy has been used in two different senses. First, it refers to cases where the concern for others directly affects an individual's own welfare. Second, the term has served the purposes of welfare economics, where it is associated with interpersonal comparisons of the extended sympathy type, that is, comparisons between one's own situation in a social state and someone else's in a different social state. On the other hand, (...) empathy has been used interchangeably with sympathy either to render the idea of interdependent utility functions, or to convey the imaginative process of imagining oneself in someone else's place. (shrink)

a–b* c–d is taken to mean that your degree of preference for a over b is less than your degree of preference for c over d. Various properties of the strength-of-preference comparison relation * are examined along with properties of simple preferences defined from *. The investigation recognizes an individual's limited ability to make precise judgments. Several utility theorems relating a–b * c–d to u(a)–u(b) are included.

Since its founding in 1863, the National Academy of Sciences (NAS) has occupied a special niche in the complex ecology of advice-giving in the United States. Established as a small, private organization with special responsibilities and obligations vis à vis the American people and government, the Academy has expanded considerably in the past century and a half and now releases, through the National Research Council (NRC), its operating arm, more than 200 reports per year, on topics covering nearly the entire (...) range of science, engineering, health, and education. The development of the organization, its basic ethos, and its evolving structures and processes can be seen as examples of what Herbert Simon called procedural rationality : the pursuit of reasonably good solutions to complex problems based on appropriate deliberation. (shrink)

The 1985 paper by Carlos Alchourrón (1931–1996), Peter Gärdenfors, and David Makinson (AGM), "On the Logic of Theory Change: Partial Meet Contraction and Revision Functions" was the starting-point of a large and rapidly growing literature that employs formal models in the investigation of changes in belief states and databases. In this review, the first twentyfive years of this development are summarized. The topics covered include equivalent characterizations of AGM operations, extended representations of the belief states, change operators not included in (...) the original framework, iterated change, applications of the model, its connections with other formal frameworks, computatibility of AGM operations, and criticism of the model. (shrink)

The 1985 paper by Carlos Alchourrón, Peter Gärdenfors, and David Makinson, “On the Logic of Theory Change: Partial Meet Contraction and Revision Functions” was the starting-point of a large and rapidly growing literature that employs formal models in the investigation of changes in belief states and databases. In this review, the first twenty-five years of this development are summarized. The topics covered include equivalent characterizations of AGM operations, extended representations of the belief states, change operators not included in the original (...) framework, iterated change, applications of the model, its connections with other formal frameworks, computatibility of AGM operations, and criticism of the model. (shrink)

The essay aims to show how business ethics—understood as a three-level approach—can strengthen the social cohesion of a society, which is jeopardized today in many ways. In the first part, the purpose of business and the economy is explained as the creation of wealth defined as a combination of private and public wealth that includes natural, economic, human, and social capital. Special emphasis is placed on the implications of the creation of public wealth which requires institutions other than the market (...) and motivations other than self-regarding ones. In the second part, the question of what holds a society together is discussed through different approaches: enlightened self-interest, a new game-theoretical approach, and the concept of the common good advanced by Catholic Social Teaching, followed by my own proposal. The third part presents several perspectives for business ethics to strengthen social cohesion of a society by focusing on the purpose of business and the economy to create natural, economic, human, and social capital; by advancing public goods that stand the test of ethical scrutiny; and by securing human rights conceptualized as public goods. (shrink)

We consider two no-show paradoxes, in which a voter obtains a preferable outcome by abstaining from a vote. One arises when the casting of a ballot that ranks a candidate in first place causes that candidate to lose the election, superseded by a lower-ranked candidate. The other arises when a ballot that ranks a candidate in last place causes that candidate to win, superseding a higher-ranked candidate. We show that when there are at least four candidates and when voters may (...) express indifference, every voting rule satisfying Condorcet’s principle must generate both of these paradoxes. (shrink)

Analytic political philosophy tries to make our political language more precise. But in doing so it risks departing from our natural language and intuitions. This article examines this tension. We...

This paper considers the legislative debates in Australia that led to the passage of the Research Involving Human Embryos Act (Cth 2002) and the Prohibition of Human Cloning Act (Cth 2002). In the first part of the paper, we discuss the debate surrounding the legislation with particular emphasis on the ways in which demands for public consultation, public debate and the education of Australians about the potential ethical and scientific impact of human embryonic stem cells (hESC) research were deployed, and (...) the explicit and implicit framing of the scope of public consultation. We then ask whether, given the calls for public consultations, debate and understanding, current work in democratic theory could be helpful in analysing the process of policy-making in these areas. In particular, we canvass the literature relating to aggregative and deliberative models of democracy for processes that support the legitimacy of policy. We identify features of the debate that reflect the appeal of deliberative approaches as well as some of the possible hurdles or limitations to developing deliberative democratic approaches to policy in ethically contentious areas. (shrink)

In modern societies entrepreneurship and innovation are widely seen as key sources of economic growth and welfare increases. Yet entrepreneurial innovation has also meant losses and hardships for some members of society: it is destructive of some stakeholders’ wellbeing even as it creates new wellbeing among other stakeholders. Both the positive benefits and negative externalities of innovation are problematic because entrepreneurs initiate new ventures before their private profitability and/or social costs can be fully recognized. In this paper we consider three (...) analytical frameworks within which these issues might be examined: pre-commitments, contractarianism, and an entrepreneurial framework. We conclude that the intersection of stakeholder theory and entrepreneurial innovation is a potentially rich arena for research. (shrink)

This paper assesses James M. Buchanan's claim of following a positive approach in stark contrast to the normative approach to public finance of Richard A. Musgrave. The goal of this paper is to shed light on the foundations of modern American public finance by analysing one aspect of the methodology of its two most prominent fathers. I show (1) that it is difficult to distinguish Musgrave's and Buchanan's theories of public goods along the positive/normative dividing line and (2) that Buchanan's (...) theory can also be considered normative. In the first three parts, I follow the Weberian methodological tradition in looking for value judgements in the theories, and by reflecting on the nature of ideal types. In the last part, I propose a broader interpretation of Buchanan's methodological stance within the academic context of the 1960s. (shrink)

The proposal I offer attempts to remedy the inadequacies of exclusive focus on well-being for moral purposes. The proposal is this: We should allow the agent to decide for herself where she wants to throw the weight that is her due in moral reflection, with the proviso that she understands the way that her weight will be aggregated with others in reaching a moral outcome. I will call this the "autonomy principle." The autonomy principle, I claim, provides the consequentialist's best (...) prospect for taking people into account morally in a way that they endorse. (shrink)