Journal of Economic Methodology, Volume 19, Issue 2, Page 165-167, June 2012.

Why do we have social norms—of fairness, cooperation, trust, property, or gender? Modern-day Humeans, as I call them, believe these norms are best accounted for in cultural evolutionary terms, as adaptive solutions to recurrent problems of social interaction. In this paper, I discuss a challenge to this “Humean Program.” Social norms involve widespread behaviors, but also distinctive psychological attitudes and dispositions. According to the challenge, Humean accounts of norms leave their psychological side unexplained. They explain, say, why we share equally, (...) but not why we disapprove of those who don’t. I defend the Humean Program against this challenge. In particular, I suggest an idea for how to extend the Program to account for the psychological side of norms. Socially adaptive behaviors aren’t just likely to emerge in a group; They are also likely to be widely taught within it. The transmission of these behaviors through instruction explains why they are associated with distinctive normative attitudes and dispositions. These attitudes play a pedagogical role in helping transmit these behaviors to children and newcomers. (shrink)

Humans often behave altruistically towards strangers with no chance of reciprocation. From an evolutionary perspective, this is puzzling. The evolution of altruistic cooperative behavior—in which an organism’s action reduces its fitness and increases the fitness of another organism —only makes sense when it is directed at genetically related organisms or when one can expect the favor to be returned. Therefore, evolutionary theorists such as Sober and Wilson have argued that we should revise Neo-Darwininian evolutionary theory. They argue that human altruism (...) evolved through group selection in which groups of altruists were naturally selected because they had a comparative advantage over other groups. Wilson and Sober’s hypothesis attracted followers but is rejected by most of their peers. The heated debate between advocates and critics of group selection often suffers from a lack of conceptual clarity. In response, I set out to clearly distinguish ‘genetic’ from ‘cultural’ group selection and argue that the latter does not face the potentially debilitating problems plaguing the former. I defend the claim that human altruistic dispositions evolved through cultural group selection and gene-culture coevolution and offer empirical evidence in support. I also argue that actual altruistic behavior often goes beyond the kind of behavior humans have evolved to display. Conscious and voluntary reasoning processes, I show, have an important role in altruistic behavior. This is often overlooked in the scientific literature on human altruism. (shrink)

Influential thinkers such as Young, Sugden, Binmore, and Skyrms have developed game-theoretic accounts of the emergence, persistence and evolution of social contracts. Social contracts are sets of commonly understood rules that govern cooperative social interaction within societies. These naturalistic accounts provide us with valuable and important insights into the foundations of human societies. However, current naturalistic theories focus mainly on how social contracts solve coordination problems in which the interests of the individual participants are aligned, not competition problems in which (...) individual interests compete with group interests. In response, I set out to build on those theories and provide a comprehensive naturalistic account of the emergence, persistence and evolution of social contracts. My central claim is that social contracts have culturally evolved to solve cooperation problems, which include both coordination and competition problems. I argue that solutions to coordination problems emerge from “within-group” dynamics, while solutions to competition problems result largely from “between-group” dynamics. (shrink)

Many have expected that understanding the evolution of norms should, in some way, bear on our first-order normative outlook: How norms evolve should shape which norms we accept. But recent philosophy has not done much to shore up this expectation. Most existing discussions of evolution and norms either jump headlong into the is/ought gap or else target meta-ethical issues, such as the objectivity of norms. My aim in this paper is to sketch a different way in which evolutionary considerations can (...) feed into normative thinking—focusing on stability. I will discuss two forms of argument that utilize information about social stability drawn from evolutionary models, and employs it to assess claims in political philosophy. One such argument treats stability as feature of social states that may be taken into account alongside other features. The other uses stability as a constraint on the realization of social ideals, via a version of the ought-implies-can maxim. These forms of argument are not new; indeed they have a history going back at least to early modern philosophy. But their marriage with evolutionary information is relatively recent, has a significantly novel character, and has received little attention in recent moral and political philosophy. (shrink)

In this article, I present a substantive proposal about the timing and nature of the final stage of the evolution of full human language, the transition from so-called “protolanguage” to language, and on the origins of a simple protolanguage with structure and displaced reference; a proposal that depends on the idea that the initial expansion of communicative powers in our lineage involved a much expanded role for gesture and mime. But though it defends a substantive proposal, the article also defends (...) and illustrates a methodological proposal too. I argue that language is a special case of a more general phenomenon—cumulative cultural evolution—and while we rarely have direct information about communication, we have more direct information about the cumulative cultural evolution of technical skill, ecological strategies, and social complexity. These same factors also enable us to make a reasonable estimate of the intergenerational social learning capacities of these communities and of the communicative demands these communities face. For example, we can, at least tentatively, identify forms of cooperation that are stable only if third party information is transmitted widely, cheaply, and accurately. So we can use these more direct markers of information accumulation to locate, in broad terms, the period in our evolutionary history during which we became lingual. (shrink)

Epicurean contractarianism is an attempt to reconcile individualistic hedonism with a robust account of justice. The pursuit of pleasure and the requirements of justice, however, have seemed to be incompatible to many commentators, both ancient and modern. It is not clear how it is possible to reconcile hedonism with the demands of justice. Furthermore, it is not clear why, even if Epicurean contractarianism is possible, it would be necessary for Epicureans to endorse a social contract. I argue here that Epicurean (...) contractarianism is both possible and necessary once we understand Epicurean practical rationality in a new way. We are left with an appealing version of teleological, individualistic contractarianism that is significantly different from Hobbesian contractarianism. (shrink)

In this article, I derive a weak version of Kant's categorical imperative within an informal game-theoretic framework. More specifically, I argue that Hobbesian agents would choose what I call the weak principle of universalization, if they had to decide on a rule of conflict resolution in an idealized but empirically defensible hypothetical decision situation. The discussion clarifies (i) the rationality requirements imposed on agents, (ii) the empirical conditions assumed to warrant the conclusion, and (iii) the political institutions that are necessary (...) to implement the derived principle. The analysis demonstrates the moral significance of the weak principle of universalization and its epistemic advantage over the categorical imperative. (shrink)

Some behavioral economists argue that the honoring of social norms can be adequately modeled as the optimization of social utility functions in which the welfare of others appears as an explicit argument. This paper suggests that the large experimental claims made for social utility functions are premature at best, and that social norms are better studied as equilibrium selection devices that evolved for use in games that are seldom studied in economics laboratories.

The impact of science on ethics forms since long the subject of intense debate. Although there is a growing consensus that science can describe morality and explain its evolutionary origins, there is less consensus about the ability of science to provide input to the normative domain of ethics. Whereas defenders of a scientific normative ethics appeal to naturalism, its critics either see the naturalistic fallacy committed or argue that the relevance of science to normative ethics remains undemonstrated. In this paper, (...) we argue that current scientific normative ethicists commit no fallacy, that criticisms of scientific ethics contradict each other, and that scientific insights are relevant to normative inquiries by informing ethics about the options open to the ethical debate. Moreover, when conceiving normative ethics as being a nonfoundational ethics, science can be used to evaluate every possible norm. This stands in contrast to foundational ethics in which some norms remain beyond scientific inquiry. Finally, we state that a difference in conception of normative ethics underlies the disagreement between proponents and opponents of a scientific ethics. Our argument is based on and preceded by a reconsideration of the notions naturalistic fallacy and foundational ethics. This argument differs from previous work in scientific ethics: whereas before the philosophical project of naturalizing the normative has been stressed, here we focus on concrete consequences of biological findings for normative decisions or on the day-to-day normative relevance of these scientific insights. (shrink)

opinionated survey paper to be published in the Blackwell’s Philosophy Compass.

By considering what we identify as a problem inherent in the ‘nature of the firm’—the risk of abuse of authority—we propound the conception of a social contract theory of the firm which is truly Rawlsian in its inspiration. Hence, we link the social contract theory of the firm with the general theory of justice. Through this path, we enter the debate about whether firms can be part of Rawlsian theory of justice showing that corporate governance principles enter the “basic structure.” (...) Finally, we concur with Sen’s aim to broaden the realm of social justice beyond what he calls the ‘transcendental institutional perfectionism’ of Rawls’ theory. We maintain the contractarian approach to justice but introduce Sen’s capability concept as an element of the constitutional and post-constitutional contract model of institutions with special reference to corporate governance. Accordingly, rights over primary goods and capabilities are granted by the basic institutions of society, but many capabilities have to be turned into the functionings of many stakeholders through the operation of firms understood as post-constitutional institutional domains. The constitutional contract on the distribution of primary goods and capabilities should then shape the principles of corporate governance so that at post-constitutional level anyone may achieve her/his functionings in the corporate domain by exercising such capabilities. In the absence of such a condition, post-constitutional contracts would distort the process that descends from constitutional rights and capabilities toward social outcomes. (shrink)

Current debates in social ontology are dominated by approaches that view institutions either as rules or as equilibria of strategic games. We argue that these two approaches can be unified within an encompassing theory based on the notion of correlated equilibrium. We show that in a correlated equilibrium each player follows a regulative rule of the form ‘if X then do Y’. We then criticize Searle's claim that constitutive rules of the form ‘X counts as Y in C’ are fundamental (...) building blocks for institutions, showing that such rules can be derived from regulative rules by introducing new institutional terms. Institutional terms are introduced for economy of thought, but are not necessary for the creation of social reality. (shrink)

The American Journal of Bioethics, Volume 11, Issue 7, Page W1-W3, July 2011.

Despite the moral underpinnings of Karl Popper’s philosophy, he has not presented a well-established moral theory for critical rationalism (CR). This paper addresses the ontological status of _moral agents_ as part of a research program for developing a moral theory for CR. It argues that moral agents are _selves_ who have achieved the cognitive capacity of _personhood_ through an evolutionary scenario and interaction with the environment. This proposal draws on Popper’s theory of the self and his theory of three worlds, (...) which offer both epistemological and ontological insights into the emergence and evolution of _moral agents_. The paper also discusses some of the consequences of this proposal for the _objectivity_ and _criticizability_ of moral judgments and the moral agency of artificial intelligence. It concludes by suggesting some directions for future research on the epistemological and ontological problems of ethics in CR. (shrink)

The topic of moral diversity is not only prevalent in contemporary moral and political philosophy, it is also practically relevant. Moral diversity, however, poses a significant challenge for moral theory building. John Thrasher, in his discussion of public reason theory, which includes social contract theory, argues that if one seriously considers the goal of moral constructivism and considerations of representation and stability, then moral diversity poses an insurmountable problem for most public reason theories. I agree with Thrasher that moral diversity (...) poses a significant challenge for orthodox multistage social contract theories. In fact, I even add a further problem for such theories under the assumption of deep moral diversity. Nevertheless, I argue that my recently developed multilevel social contract theory overcomes these problems. I focus on some of the underexplored features of this theory to show that multilevel social contract theory offers one conceptually coherent and plausible way to render social contract theory viable and relevant for modern diverse societies. (shrink)

Conventionalism as a distinct approach to the social contract received significant attention in the game-theoretic literature on social contract theory. Peter Vanderschraaf’s sophisticated and innovative theory of conventional justice represents the most recent contribution to this tradition and, in many ways, can be viewed as a culmination of this tradition. In this article, I focus primarily on Vanderschraaf’s defense of the egalitarian bargaining solution as a principle of justice. I argue that one particular formal feature of this bargaining solution, the (...) baseline consistency requirement, may stand in tension with other features of conventionalism as an approach to the social contract and limit the scope of Vanderschraaf’s theory to societies in which de facto an egalitarian sense of justice evolves. It limits the scope of Vanderschraaf’s theory in the face of moral diversity. A similar limitation applies to Vanderschraaf’s theory of democratic political authority. Despite these minor limitations, Vanderschraaf’s theory can only be seen as a major success and significant contribution to social contract theory. (shrink)

In distributive bargaining, bargainers may have an impulse to bluff and thereby risk an impasse. The current paper does not explain bargaining impasses. For our purposes, it suffices to recognize that bargaining impasses may occur without assuming irrationality. The design problem is to ensure that impasses are avoided as often as possible. One possible solution is to allow for the formation of an agreement by “conduct”. The ‘agreement by conduct’ outcome as a commercial norm may coordinate bargainers’ expectations so as (...) to enable them to perform the same contract, even if they made written demands above ½ (as a bluff). The idea that the “deal-is-on” philosophy as expressed in the “agreement-by-conduct” rule affects and promotes economic exchange is probed in the context of a modified Divide-the-Dollar game. (shrink)

Social contract theorists often take the ideal contract to be the agreement or bargain individuals would make in some privileged choice situation. Recently, experimental philosophers have explored this kind of decision-making in the lab. One rather robust finding is that the exact circumstances of choice significantly affect the kinds of social arrangements experimental subjects unanimously endorse. Yet prior work has largely ignored the question of which of the many competing descriptions of the original position subjects find most compelling. This paper (...) aims to address this gap, exploring how attractive experimental subjects find various characterizations of these circumstances of choice. We find evidence suggesting that no one choice situation can fulfill the role that social contract theorists have hoped it would play. We also find that, contrary to what some prominent social contract theorists have expected, there is no robust relationship between an individual’s ranking of distributive principles and their ranking of various descriptions of the original position. In conclusion, we discuss the broader implications of these results for political philosophy. (shrink)

Public reason theories are characterized by three conditions: constructivism, representation, and stability. Constructivism holds that justification does not rely on any antecedent moral or political values outside of the procedure of agreement. Representation holds that the reasons for the choice in the model must be rationally explicable to real agents outside the model. Stability holds that the principles chosen in the procedure should be stable upon reflection, especially in the face of diversity in a pluralistic society. Choice procedures that involve (...) at least two-stages with different information, as Rawls’s theory does, will be path-dependent and not meet the condition of representation since it will not be globally coherent. Attempts to solve this problem without eliminating the segmentation of choice in the procedure will run afoul of constructivism or stability. This problem is instructive because it highlights how public reason theories must evolve in the face of increased concerns about diversity. (shrink)

Altruism is a deep and complex phenomenon that is analysed by scholars of various disciplines, including psychology, philosophy, biology, evolutionary anthropology and experimental economics. Much confusion arises in current literature because the term altruism covers variable concepts and processes across disciplines. Here we investigate the sense given to altruism when used in different fields and argumentative contexts. We argue that four distinct but related concepts need to be distinguished: (a) psychological altruism , the genuine motivation to improve others’ interests and (...) welfare; (b) reproductive altruism , which involves increasing others’ chances of survival and reproduction at the actor’s expense; (c) behavioural altruism , which involves bearing some cost in the interest of others; and (d) preference altruism , which is a preference for others’ interests. We show how this conceptual clarification permits the identification of overstated claims that stem from an imprecise use of terminology. Distinguishing these four types of altruism will help to solve rhetorical conflicts that currently undermine the interdisciplinary debate about human altruism. (shrink)

Selecting, applying and reporting on investment screens for socially responsible investing (SRI) presents challenges for companies, investors and fund managers. This article seeks to clarify the nature of these challenges in developing an understanding of the foundations of ethical investment screens. At a conceptual level this work argues that there is a common element to the ethical foundations of SRI, even with very different apparent motivations and investment restrictions. Establishing this commonality assists in explaining the information asymmetry problem inherent in (...) SRI. A market-facilitated solution illustrates how these insights might foster the development of socially responsible investment. (shrink)

Do conventions need to be common knowledge in order to work? David Lewis builds this requirement into his definition of a convention. This paper explores the extent to which his approach finds support in the game theory literature. The knowledge formalism developed by Robert Aumann and others militates against Lewis’s approach, because it shows that it is almost impossible for something to become common knowledge in a large society. On the other hand, Ariel Rubinstein’s Email Game suggests that coordinated action (...) is no less hard for rational players without a common knowledge requirement. But an unnecessary simplifying assumption in the Email Game turns out to be doing all the work, and the current paper concludes that common knowledge is better excluded from a definition of the conventions that we use to regulate our daily lives. (shrink)

I argue that contemporary accounts of ideology critique—paradigmatically those advanced by Haslanger, Jaeggi, Celikates, and Stanley—are either inadequate or redundant. The Marxian concept of ideology—a collective epistemic distortion or irrationality that helps maintain bad social arrangements—has recently returned to the forefront of debates in contemporary analytic social philosophy. Ideology critique has similarly emerged as a technique for combating such social ills by remedying those collective epistemic distortions. Ideologies are sets of social meanings or shared understandings. I argue in this paper (...) that because agents must coordinate on them to be mutually intelligible, ideologies, on the fashionable contemporary account, are conventions. They are equilibrium solutions to a particular kind of social coordination problem. The worry is that changing pernicious conventions requires more than the epistemic remedy contemporary critical social theorists prescribe. It also requires overcoming strategic impediments like high first-mover costs. Thus contemporary proponents of ideology critique—the “new ideology critics,” as I’ll call them—face a dilemma. Either their account of social change fails to account for important strategic impediments to social change, in which case it is inadequate, or it incorporates a theory of strategic behavior, and thus merely reinvents the wheel, poorly. It adds nothing to prominent convention-based accounts of social change in the social sciences. More generally, this is an example of a pernicious trend in contemporary critical social theory. Contemporary critical social theorists have abandoned their predecessors’ commitment to engaging with social science, thereby undermining their efforts. (shrink)

Recent rapid advances in Artificial Intelligence (AI) and Machine Learning have raised many questions about the regulatory and governance mechanisms for autonomous machines. Many commentators, scholars, and policy-makers now call for ensuring that algorithms governing our lives are transparent, fair, and accountable. Here, I propose a conceptual framework for the regulation of AI and algorithmic systems. I argue that we need tools to program, debug and maintain an algorithmic social contract, a pact between various human stakeholders, mediated by machines. To (...) achieve this, we can adapt the concept of human-in-the-loop (HITL) from the fields of modeling and simulation, and interactive machine learning. In particular, I propose an agenda I call society-in-the-loop (SITL), which combines the HITL control paradigm with mechanisms for negotiating the values of various stakeholders affected by AI systems, and monitoring compliance with the agreement. In short, ‘SITL = HITL + Social Contract.’. (shrink)

How is the human tendency and ability to collaborate acquired and how did it evolve? This paper explores the ontogeny and evolution of human collaboration using a combination of theoretical and empirical resources. We present a game theoretic model of the evolution of learning in the Stag Hunt game, which predicts the evolution of a built-in cooperative bias. We then survey recent empirical results on the ontogeny of collaboration in humans, which suggest the ability to collaborate is developmentally stable across (...) a range of environments. Lastly, we use an account of innateness developed by Ariew (Philos Sci 63:S19–S27, 1996) and Sober (Routledge encyclopedia of philosophy. Routledge, London, pp 794–797, 1998) to assess the extent that (1) the model predicts the fixation of innate collaboration and (2) the empirical studies show a human’s ability to collaborate to be innate. (shrink)

The disagreement between Binmore and the “behaviouralists” concerns mainly the kind of reciprocity mechanisms that sustain cooperation in and out of the experimental laboratory. Although Binmore’s scepticism concerning Strong Reciprocity is justified, his case for Weak Reciprocity and the long-run convergence to Nash equilibria is unsupported by laboratory evidence. Part of the reason is that laboratory evidence alone cannot solve the reciprocity controversy, and researchers should pay more attention to field data. As an example, I briefly illustrate a historical case (...) suggesting that the institutions that foster cooperation in the real world rely on Weak Reciprocity mechanisms such as those that feature prominently in Binmore’s story. (shrink)

Recently, philosophers have drawn on tools from game theory to explore behavior in Hobbes’ state of nature. I take a similar approach and argue the Lockean state of nature is best conceived of as a conflictual coordination game. I also discuss Nozick’s famous claim regarding the emergence of the state and argue the path to the minimal state is blocked by a hitherto unnoticed free-rider problem. Finally, I argue that on my representation of the Lockean state of nature both widespread (...) conflict and lasting peace are possible. This, I contend, is in line with one popular interpretation of Locke. (shrink)

Many open networks, distributed computing systems, and infrastructure management systems face a common problem: how to distribute a collectivised set of resources amongst a set of autonomous agents of heterogenous provenance. One approach is for the agents themselves to self-organise the allocation of resources with respect to a set of agreed conventional rules; but given an allocation scheme which maps resources to those agents and a set of rules for determining that allocation scheme, some natural questions arise—Is this allocation fair? (...) Is the allocation method effective? Is it efficient? Are the decision makers accountable? In this paper, we argue that some answers to these questions can be found in the formal characterisation of different aspects of ‘justice’ and that these different aspects need a principled operationalisation as policies for system management. We present a formal model and some experimental results, concluding that the different aspects are all inter-connected and that what is required is a comprehensive research programme in computational justice. (shrink)

For contractarians, justice is the result of a rational bargain. The goal is to show that the rules of justice are consistent with rationality. The two most important bargaining theories of justice are David Gauthier’s and those that use the Nash’s bargaining solution. I argue that both of these approaches are fatally undermined by their reliance on a symmetry condition. Symmetry is a substantive constraint, not an implication of rationality. I argue that using symmetry to generate uniqueness undermines the goal (...) of bargaining theories of justice. (shrink)

This paper studies how legal choices, and in particular legislative determinations, need to consider multiple rights and values, and can be assessed accordingly. First it is argued that legal norms (and in particular constitutional right-norms) often prescribe the pursuit of goals, which may be in conflict one with another. Then a model of teleological reasoning is brought to bear on choices affecting different goals, among which those prescribed by constitutional norms. An analytical framework is provided for evaluating such choices with (...) regard to possible alternatives. The assessment of legislative choices according to proportionality is then considered, and is modelled using the provided analytical framework. Finally, the framework is expanded to include the ideas of reasonableness and institutional deference, and the corresponding margins of appreciation. (shrink)

In comparing Sen's work with Mill's, Sugden criticizes Sen's capability approach because it may be applied in such a way that society or theorists judge what is best for people and potentially restrict liberty on that basis. Sugden cites Nussbaum's work as evidence in making his case. Sugden's critique of Sen's approach succeeds on a narrow reading of it. On that reading Sen is also critical of it because it does not leave enough room for liberty. On a broad reading, (...) the critique has less force. Nussbaum's approach follows Mill in allowing people freedom to act on whatever desires they have if this does not harm others. This neutralizes the central element of Sugden's critique as it applies to her approach to some degree. Both Sen and Nussbaum nonetheless recognize the danger of illiberal restrictions in application which motivates Sugden's critique. (shrink)

This paper investigates the influence that social ties can have on behavior. After defining the concept of social ties that we consider, we introduce an original model of social ties. The impact of such ties on social preferences is studied in a coordination game with outside option. We provide a detailed game theoretical analysis of this game while considering various types of players, i.e., self-interest maximizing, inequity averse, and fair agents. In addition to these approaches that require strategic reasoning in (...) order to reach some equilibrium, we also present an alternative hypothesis that relies on the concept of team reasoning. After having discussed the differences between the latter and our model of social ties, we show how an experiment can be designed so as to discriminate among the models presented in the paper. (shrink)

Recently, philosophers have investigated the emergence and evolution of the social contract. Yet extant work is limited as it focuses on the use of simple behavioral norms in rather rigid strategic settings. Drawing on axiomatic bargaining theory, we explore the dynamics of more sophisticated norms capable of guiding behavior in a wide range of scenarios. Overall, our investigation suggests the utilitarian bargaining solution has a privileged status as it has certain stability properties other social arrangements lack.

Savage denied that Bayesian decision theory applies in large worlds. This paper proposes a minimal extension of Bayesian decision theory to a large-world context that evaluates an event E\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$E$$\end{document} by assigning it a number π\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\pi $$\end{document} that reduces to an orthodox probability for a class of measurable events. The Hurwicz criterion evaluates π\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\pi $$\end{document} (...) as a weighted arithmetic mean of its upper and lower probabilities, which we derive from the measurable supersets and subsets of E\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$E$$\end{document}. The ambiguity aversion reported in experiments on the Ellsberg paradox is then explained by assigning a larger weight to the lower probability of winning than to the upper probability. However, arguments are given here that would make anything but equal weights irrational when using the Hurwicz criterion. The paper continues by embedding the Hurwicz criterion in an extension of expected utility theory that we call expectant utility. (shrink)

The question of what a group of rational agents would agree on were they to deliberate on how to organise society is central to all hypothetical social contract theories. If morality is to be based on a social contract, we need to know the terms of this contract. One type of social contract theory, contractarianism, aims to derive morality from rationality alone. Contractarians need to show, amongst other things, that rational and self-interested individuals would agree on an impartial division of (...) a cooperative surplus. But it is often claimed that contractarians cannot show this without introducing moral assumptions. This paper argues that on the right understanding of the question contractarians are asking, these worries can be answered. Without relying on moral assumptions, the paper offers a novel derivation of symmetry, which is the axiom responsible for the impartiality of the most famous economic bargaining solutions appealed to by contractarians. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. It focuses on justification according to the contractarian point of view. It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm's stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the (...) extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

Being a formal and general as well as the most widely accepted approach to practical rationality, rational decision theory should be crucial for justifying rational morals. In particular, acting morally should also be rational in decision theoretic terms. After defending this thesis, in the critical part of the paper two strategies to develop morals following this insight are criticized: game theoretical ethics of cooperation and ethical intuitionism. The central structural objections to ethics of cooperation are that they too directly aim (...) at the rationality of moral action and that they to do not encompass moral values or a moral desirability function. The constructive half of the paper takes up these criticisms by developing a two-part strategy to bring rationality and morals in line. The first part is to define ‘moral desirability’. This is done, using multi-attribute utility theory, by equating several adequate components of an individual’s comprehensive utility function with the moral desirability function. The second part is to introduce mechanisms, institutions, in particular socially valid moral norms, that provide further motivation for acting in accordance with morals. (shrink)

Recent work on the evolution of social contracts and conventions has often used models of bargaining games, with reinforcement learning. A recent innovation is the requirement that every strategy must be invented either through through learning or reinforcement. However, agents frequently get stuck in highly-reinforced “traps” that prevent them from arriving at outcomes that are efficient or fair to the both players. Agents face a trade-off between exploration and exploitation, i.e. between continuing to invent new strategies and reinforcing strategies that (...) have already become highly reinforced by yielding high rewards. In this paper I systematically study the relationship between rates of invention and the efficiency and fairness of outcomes in two-player, repeated bargaining games. I use a basic reinforcement learning model with invention, and five variations of this model, designed introduce various forms of forgetting, to prioritize more recent reinforcement, or to maintain a higher rate of invention. I use computer simulations to investigate the outcomes of each model. Each models shows qualitative similarities in the relationship between the efficiency and fairness of outcomes, and the relative amount of exploration or exploitation that takes place. Surprisingly, there are often trade-offs between the efficiency and the fairness of the outcomes. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. Whereas, justificatory issues have been discussed in a related paper, in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation as a way to implement the social contract (...) on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation, the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm. (shrink)

Theories of intergenerational obligations usually take the shape of theories of distributive (social) justice. The complexities involved in intergenerational obligations force theorists to simplify. In this article I unpack two popular simplifications: the inevitability of future generations, and the Hardinesque assumption that future individuals are a burden on society but a benefit to parents. The first assumption obscures the fact that future generations consist of individuals whose existence can be a matter of voluntary choice, implying that there are individuals who (...) are responsible and accountable for that choice and for its consequences. The second assumption ignores the fact that the benefits and burdens of future individuals are complex, and different for different “beneficiaries” or “victims.” Introducing individual responsibility for procreation as a (crucially) relevant variable, and allowing a more sophisticated understanding of the impact of new individuals, generates grounds to prioritize the individual’s interest in responsibility for (creating and equipping) future individuals over any collective intergenerational obligation. I illustrate this by introducing a series of moral duties that take precedence over, and perhaps even void, possible collective redistributive duties. (shrink)

Mind reading (i.e. the ability to infer the mental state of another agent) is taken to be the main cognitive ability required to share an intention and to collaborate. In this paper, I argue that another cognitive ability is also necessary to collaborate: representing others’ and ones’ own goals from a third-person perspective (other-centred or allocentric representation of goals). I argue that allocentric mind reading enables the cognitive ability of goal adoption, i.e. having the goal that another agent’s achieve p (...) because and as long as another agent has that goal that p. Having clarified the relevance of mutual goal adoption for acting jointly, I argue that when an intention is shared between several agents, each individual has an intention in favour of the joint action and one in favour of a joint mode of reasoning. This mode of reasoning is allocentric reasoning. Finally, I elaborate on the consequences of this view for the scientific study of human collaboration. (shrink)

Health and Social Justice (Ruger 2009a) developed the ?health capability paradigm,? a conception of justice and health in domestic societies. This idea undergirds an alternative framework of social cooperation called ?shared health governance? (SHG). SHG puts forth a set of moral responsibilities, motivational aspirations, and institutional arrangements, and apportions roles for implementation in striving for health justice. This article develops further the SHG framework and explains its importance and implications for governing health domestically.

The revised edition of Paul Seabright’s The Company of Strangers is critically reviewed. Seabright aims to help non-economists participating in the cross-disciplinary study of the evolution of human sociality appreciate the potential value that can be added by economists. Though the book includes nicely constructed and vivid essays on a range of economic topics, in its main ambition it largely falls short. The most serious problem is endorsement of the so-called strong reciprocity hypothesis that has been promoted by several prominent (...) economists, but does not pass muster with biologists. (shrink)

In this paper I put forward a thesis regarding the anatomy of “cultural evolution”, in particular the way the “cultural” transmission of behavioral patterns came to piggyback, through us humans, on the transmission effected by genetic evolution. I claim that what grounds and supports this new kind of transmission is a complex behavioral “meta-pattern” that makes it possible to grasp a pattern as something that “ought to be”, i.e. that transforms the pattern into what we can call a rule. (Here (...) I draw especially on the philosophical insights of Wilfrid Sellars.) In this way I interlink empirical research done in evolution theory with some more speculative philosophical theories, thus shedding new light on the former and adding an empirical footing to the latter. (shrink)

We consider the Stag Hunt in terms of Maynard Smith’s famous Haystack model. In the Stag Hunt, contrary to the Prisoner’s Dilemma, there is a cooperative equilibrium besides the equilibrium where every player defects. This implies that in the Haystack model, where a population is partitioned into groups, groups playing the cooperative equilibrium tend to grow faster than those at the non-cooperative equilibrium. We determine under what conditions this leads to the takeover of the population by cooperators. Moreover, we compare (...) our results to the case of an unstructured population and to the case of the Prisoner’s Dilemma. Finally, we point to some implications our findings have for three distinct ideas: Ken Binmore’s group selection argument in favor of the evolution of efficient social contracts, Sewall Wright’s Shifting Balance theory, and the equilibrium selection problem of game theory. (shrink)

Game theory is a formal approach to behavior that focuses on the strategic aspect of situations. The game theoretic approach originates in economics but has been embraced by scholars across disciplines, including many philosophers and biologists. This approach has an important weakness: the strategic aspect of a situation, which is its defining quality in game theory, is often not its most salient quality in human cognition. Evidence from a wide range of experiments highlights this shortcoming. Previous theoretical and empirical work (...) has sought to address this weakness by considering learning across an ensemble of multiple games simultaneously. Here we extend this framework, incorporating artificial neural networks, to allow for an investigation of the interaction between the perceptual and functional similarity of the games composing the larger ensemble. Using this framework, we conduct a theoretical investigation of a population that encounters both stag hunts and prisoner’s dilemmas, two situations that are strategically different but which may or may not be perceptually similar. (shrink)