Contract-based approaches have been a focus of attention in business ethics. As one of the grand traditions in political philosophy, contractarianism is founded on the notion that we will never resolve deep moral disagreement. Classical philosophers like Hobbes and Locke, or recent ones like Rawls and Gaus, seek to solve ethical conflicts on the level of social rules and procedures. Recent authors in business ethics have sought to utilize contract-based approaches for their field and to apply it to concrete business (...) dilemmas. However, the application of contractarianism to management contexts can cause difficulties. Our article discusses this conceptual problem of contractarian business ethics and presents the idea of order ethics as an alternative. Order ethics, as we argue, can make a difference by conceptually bridging the gap between contractarianism and business ethics. (shrink)

The most common argument against the use of rational choice models outside economics is that they make unrealistic assumptions about individual behavior. We argue that whether the falsity of assumptions matters in a given model depends on which factors are explanatorily relevant. Since the explanatory factors may vary from application to application, effective criticism of economic model building should be based on model-specific arguments showing how the result really depends on the false assumptions. However, some modeling results in imperialistic applications (...) are relatively robust with respect to unrealistic assumptions. Key Words: unrealistic assumptions • economics imperialism • rational choice • as if • robustness. (shrink)

Applications of game theory to moral philosophy are impededby foundational issues and troublesome examples. In the first part of this paper,questions are raised about the appropriate game-theoretical frameworks for applications to moralphilosophy and about the proper interpretations of the theoretical devices employed inthese frameworks. In the second part, five examples that should be of particular interest to thoseinterested in the connections between ethics and game theory are delineated and discussed. Thefirst example comprises games in which there is an outcome unanimously (...) preferred to the``solution'' of the game, appropriately defined. The second comprises games whose solution callsfor different players to employ different strategies. The third comprises games whosesolution calls for players to adopt mixed strategies. The fourth comprises games whose solutionrequires players to cycle among a variety of strategies. The fifth comprises games whose solutionrequires players to discriminate in morally inappropriate ways. (shrink)

This paper presents a proof of concept for a graphical models approach to assessing the moral coherence and moral robustness of systems of social interactions. “Moral coherence” refers to the degree to which the rights and duties of agents within a system are effectively respected when agents in the system comply with the rights and duties that are recognized as in force for the relevant context of interaction. “Moral robustness” refers to the degree to which a system of social interaction (...) is configured to ensure that the interests of agents are effectively respected even in the face of noncompliance. Using the case of conscientious objection of pharmacists to filling prescriptions for emergency contraception as an example, we illustrate how a graphical models approach can help stakeholders identify structural weaknesses in systems of social interaction and evaluate the relative merits of alternate organizational structures. By illustrating the merits of a graphical models approach we hope to spur further developments in this area. (shrink)

Many morally significant outcomes can be brought about only if several individuals contribute to them. However, individual contributions to collective outcomes often fail to have morally significant effects on their own. Some have concluded from this that it is permissible to do nothing. What I call ‘the problem of insignificant hands’ is the challenge of determining whether and when people are obligated to contribute. For this to be the case, I argue, the prospect of helping to bring about the outcome (...) has to be good enough. Furthermore, the individual must be in a position to increase the probability of its being brought about to an appropriate extent. Finally, I argue that when too few are willing to contribute, people may have a duty to increase their number. Thus, someone can be obligated to contribute or to get others to contribute. This prospect account is consistent with Kantianism, contractualism and rule consequentialism but inconsistent with act consequentialism. (shrink)

Many morally significant outcomes can be brought about only if several individuals contribute to them. However, individual contributions to collective outcomes often fail to have morally significant effects on their own. Some have concluded from this that it is permissible to do nothing. What I call ‘the problem of insignificant hands’ is the challenge of determining whether and when people are obligated to contribute. For this to be the case, I argue, the prospect of helping to bring about the outcome (...) has to be good enough. Furthermore, the individual must be in a position to increase the probability of its being brought about to an appropriate extent. Finally, I argue that when too few are willing to contribute, people may have a duty to increase their number. Thus, someone can be obligated to contribute or to get others to contribute. This prospect account is consistent with Kantianism, contractualism and rule consequentialism but inconsistent with act consequentialism. (shrink)

Institutions can be strong or weak. But what does this mean? Equilibrium theories equate institutions with behavioural regularities. In contrast, rule theories explicate them in terms of a standard that people are supposed to meet. I propose that, when an institution is weak, a discrepancy exists between the regularity and the standard or rule. To capture this discrepancy, I present a hybrid theory, the Rules-and-Equilibria Theory. According to this theory, institutions are rule-governed behavioural regularities. The Rules-and-Equilibria Theory provides the basis (...) for two measures of institutional strength. First, institutions that pertain to coordination games solve problems of information. Their strength is primarily a matter of the expected degree of compliance. Second, institutions that concern mixed-motive games solve problems of motivation. Their strength can be measured in terms of the weight people attribute to its rule. (shrink)

Contractualism is one of the most promising ‘centers of gravity’ in business ethics. In this guest editorial we provide a concise roadmap to the field, sketching contractualism’s historic and disciplinary antecedents, the basic argumentative structure of the contract model, and its boundary conditions. We also sketch two main dimensions along which contributions to the contractualist tradition can be positioned. The first dimension entails positive versus normative theorizing – does a given contribution analyze the world as it is or how it (...) ought to be? The second dimension involves four different levels of analysis that are commonly employed in contractualist business ethics: the nano, micro, meso, and macro levels. We then proceed to position the articles comprising this special issue along these two dimensions. (shrink)

This article provides a critical examination of Ken Binmore’s theory of the social contract in light of philosophical discussions about moral naturalism and moral conventionalism. Binmore’s account builds on the popular philosophical device of the original position but gives it a naturalistic twist. I argue that this makes it vulnerable to moral skepticism. I explore a possible answer to the moral skeptic’s challenge, building on the fact that Binmore’s account displays a variant of moral conventionalism. I ultimately conclude however that (...) the conventionalist answer leads to a purely behaviorist view of morality, which implies that there is nothing special about morality and fairness norms. I propose alternative interpretations of conventionalism. These accounts escape most of the difficulties because they place emphasis on the reasons that establish a moral convention. (shrink)

David Lewis famously proposed to model conventions as solutions to coordination games, where equilibrium selection is driven by precedence, or the history of play. A characteristic feature of Lewis Conventions is that they are intrinsically non-normative. Some philosophers have argued that for this reason they miss a crucial aspect of our folk notion of convention. It is doubtful however that Lewis was merely analysing a folk concept. I illustrate how his theory can (and must) be assessed using empirical data, and (...) argue that it does indeed miss an important aspect of real-world conventions. (shrink)

The answer in a nutshell is: Yes, five years ago, but nobody has noticed. Nobody noticed because the majority of social scientists subscribe to one of the following views: (1) the ‘anomalous’ behaviour observed in standard prisoner’s dilemma or ultimatum game experiments has refuted standard game theory a long time ago; (2) game theory is flexible enough to accommodate any observed choices by ‘refining’ players’ preferences; or (3) it is just a piece of pure mathematics (a tautology). None of these (...) views is correct. This paper defends the view that GT as commonly understood is not a tautology, that it suffers from important (albeit very recently discovered) empirical anomalies, and that it is not flexible enough to accommodate all the anomalies in its theoretical framework. It also discusses the experiments that finally refuted game theory, and concludes trying to explain why it took so long for experimental game theorists to design experiments that could adequately test the theory. (shrink)

"Though this be madness, yet there is method in't." Hamlet , act II, scene ii Abstract: Inherent normativity is the claim that intentional action explanations necessarily have to comply with normatively understood rationality constraints on the ascribed propositional attitudes. This paper argues against inherent normativity in three steps. First, it presents three examples of actions successfully explained with propositional attitudes, where the ascribed attitudes violate relevant rationality constraints. Second, it argues that the inference rules that systematise propositional attitudes are qualitatively (...) different from rationality constraints both in their justification and their recipients. Third, it rejects additional conditions on propositional attitudes, which purport to necessitate a normative commitment. Thus, inherent normativity is rejected; and with it the claim that intentional action explanations differ substantially from other explanations because they are inherently normative. (shrink)

This paper aims to contribute to the existing literature on normative cognition by providing a lineage explanation of human social norm psychology. This approach builds upon theories of goal-directed behavioral control in the reinforcement learning and control literature, arguing that this form of control defines an important class of intentional normative mental states that are instrumental in nature. I defend the view that great ape capacities for instrumental reasoning and our capacity (or family of capacities) for shared intentionality coadapted to (...) each other and argue that the evolution of this capacity has allowed the representation of social norms and the emergence of our capacity for normative guidance. (shrink)

A number of philosophers :171–187, 2011; Arnold 2011, in Ethics Politics XV:101–138, 2013) have argued that agent-based, evolutionary game theory models of the evolution of cooperation fail to provide satisfying explanations of cooperation because they are too disconnected from actual biology. I show how these criticisms can be answered by employing modeling approaches from the situated cognition research program that allow for more biologically detailed models. Using cases drawn from recent situated cognition modeling research, I show how agent-based models of (...) the evolution of cooperation can become more empirically-informed and relevant to explaining the evolution of cooperation in real populations. I argue that because situated cognition models allow for more detailed representations of not just agents’ brains but bodies and environments as well, they can be informed by a much wider breadth of empirical research than traditional agent-based models. Moreover, because the simulated bodies of these agents exhibit particular behaviors, they can be more readily compared to the behaviors of actual organisms. I conclude that employing situated cognition approaches to modeling the evolution of cooperation is a more promising way to investigate the evolution of cooperation than more traditional agent-based evolutionary game theory models. (shrink)

F.A. Hayek’s theory of cultural evolution has often been regarded as incompatible with his earlier works. Since it lacks an elaborated theory of individual learning, we try to back his arguments by starting with his thoughts on individual perception described in his Theory of Mind. With a focus on the current discussion concerning biological and cultural selection theories, we argue his Theory of Mind leads to two different stages of societal evolution with well-defined learning processes, respectively. The first learning process (...) describes his Morality of Small Groups, in which Hayek’s thoughts coincide with learning theories that do not allow for the perception of behavior from outside the group. His second stage of cultural evolution, the Open Society, involves a different kind of learning behavior. We connect this notion with a model of local interaction in which the cultural learning aspect is addressed by a distinction between interaction and learning neighborhoods. This results in a situation in which individuals change their strategy and —depending on the radius of interaction and learning neighborhood—eventually may adopt new strategies that lead to higher payoffs. (shrink)

In A Theory of Justice (1971), John Rawls introduces the concept of “reflective equilibrium.” Although there are innumerable references to and discussions of this concept in the literature, there is, to the present author's knowledge, no discussion of the most important question: Why reflective equilibrium? In particular, the question arises: Is the method of reflective equilibrium applicable to the choice of this method itself? Rawls's drawing of parallels between Kant's moral theory and his own suggests that his concept of “reflective (...) equilibrium” is on a par with Kant's concept of “transcendental deduction.” Treating these two approaches to justification as paradigmatic, I consider their respective merits in meeting the reflexive challenge, i.e., in offering a justification for choice of mode of justification. My enquiry into this topic comprises three parts. In this first part, I raise the issue of the reflexivity of justification and question whether the reflexive challenge can be met within the framework of A Theory of Justice. (shrink)

In A Theory of Justice (1971), John Rawls introduces the concept of “reflective equilibrium.” Although there are innumerable references to and discussions of this concept in the literature, there is, to the present author's knowledge, no discussion of the most important question: Why reflective equilibrium? In particular, the question arises: Is the method of reflective equilibrium applicable to the choice of this method itself? Rawls's drawing of parallels between Kant's moral theory and his own suggests that his concept of “reflective (...) equilibrium” is on a par with Kant's concept of “transcendental deduction.” Treating these two approaches to justification as paradigmatic, I consider their respective merits in meeting the reflexive challenge, i.e., in offering a justification for choice of mode of justification. In the first part of this enquiry (Eng 2014a), I raised the issue of the reflexivity of justification and questioned whether the reflexive challenge can be met within the framework of A Theory of Justice. In the second part (Eng 2014b), I outlined a Kantian approach that represents a paradigmatic alternative to Rawls. In this third and final part, I shall argue that Rawls's reflective equilibrium cannot justify the choice of itself and that in the broader perspective thus necessitated, we cannot escape the metaphysical issues integral to the Kantian approach. (shrink)

This paper critically reviews Ken Binmore’s non- utilitarian and game theoretic solution to the Arrow problem. Binmore’s solution belongs to the same family as Rawls’ maximin criterion and requires the use of Nash bargaining theory, empathetic preferences, and results in evolutionary game theory. Harsanyi has earlier presented a solution that relies on utilitarianism, which requires some exogenous valuation criterion and is therefore incompatible with liberalism. Binmore’s rigorous demonstration of the maximin principle for the first time presents a real alternative to (...) a utilitarian solution. (shrink)

I offer an explanation for why certain sequences of decisions strike us as irrational while others do not. I argue that we have a standing desire to tell flattering yet plausible narratives about ourselves, and that cases of diachronic behavior that strike us as irrational are those in which you had the opportunity to hide something unflattering and failed to do so.

John Searle’s The Construction of Social Reality and Hernando de Soto’s The Mystery of Capital shifted the focus of current thought on capital and economic development to the cultural and conceptual ideas that underpin market economies and that are taken for granted in developed nations. This collection of essays assembles 21 philosophers, economists, and political scientists to help readers understand these exciting new theories.

The most widely used attractive logical account of knowledge uses standard epistemic models, i.e., graphs whose edges are indistinguishability relations for agents. In this paper, we discuss more general topological models for a multi-agent epistemic language, whose main uses so far have been in reasoning about space. We show that this more geometrical perspective affords greater powers of distinction in the study of common knowledge, defining new collective agents, and merging information for groups of agents.

This paper contributes to the explanation of human cooperative behaviour, examining the implications of Brian Skyrms’ modelling of the prisoner’s dilemma. Augmenting a PD with signalling strategies promotes cooperation, but a challenge that must be addressed is what prevents signals being subverted by deceptive behaviour. Empirical results suggest that emotional displays can play a signalling role and, to some extent, are secure from subversion. I examine proximate explanations and then offer an evolutionary explanation for the translucency of emotional displays. Selection (...) acts on the basis of lifetime fitness consequences and, crucially for my argument, the intensity of selection decreases over the course of a lifetime. Hence we tend to possess traits that promote survival when young and, with regard to emotional displays, translucency allows successful maturation over our protracted period of nurturing by close kin. This is due to the vital role played by emotional interactions in the normal cognitive and social development of Homo sapiens. (shrink)

This chapter uses Uskali Mäki’s (2009) concepts of “good” and “bad” imperialism to investigate the “economics imperialism” thesis. If science expands by offering (a) consilience, and (b) epistemological and ontological unity – that is, it explains more phenomena with greater parsimony – then this is good scientific expansion. Economics imperialism is only bad if the methodology of economics expands outside its domain without increasing understanding in the above manners.

The paper focuses on Anthony de Jasay's "anarcho-liberalism" as based oon his game-theoretic approach to the problem of public goods provision.

Is society an organic whole with each of its many components working together like the organs in a body? Like organisms, societies are composed of many parts which seem to work together enhance their survival. Different people fulfill different, necessary role—subsistence, reproduction, coordination, and defense. Regular exchange of matter and energy guarantees that each component has the resources it needs. Norms, laws and customs regulate virtually every aspect of social interaction, who may marry who, how disputes are resolved, and how (...) verbs should be conjugated. Ritual and religion provide comfort to the sick and fearful, maintain a feeling of solidarity and belonging, and serve to preserve and transmit knowledge through time. Even the simplest human societies seem like complex machines designed for growth and survival. (shrink)

Helen Frowe has recently offered what she calls a “practical” account of self-defense. Her account is supposed to be practical by being subjectivist about permissibility and objectivist about liability. I shall argue here that Frowe first makes up a problem that does not exist and then fails to solve it. To wit, her claim that objectivist accounts of permissibility cannot be action-guiding is wrong; and her own account of permissibility actually retains an objectivist (in the relevant sense) element. In addition, (...) her attempt to restrict subjectivism primarily to “urgent” situations like self-defense contradicts her own point of departure and is either incoherent or futile. Finally, the only actual whole-heartedly objectivist account she criticizes is an easy target; while those objectivist accounts one finds in certain Western European jurisdictions are immune to her criticisms. Those accounts are also clearly superior to hers in terms of action-guidingness. (shrink)

Group beneficial norms are common in human societies. The persistence of such norms is consistent with evolutionary game theory, but existing models do not provide a plausible explanation for why they are common. We show that when a model of imitation used to derive replicator dynamics in isolated populations is generalized to allow for population structure, group beneficial norms can spread rapidly under plausible conditions. We also show that this mechanism allows recombination of different group beneficial norms arising in..