There are three main approaches to scientific explanation in the philosophical literature. The unification approach claims that science explains by fitting the particular facts and events within a general theoretical framework. The mechanistic approach claims that science explains by identifying mechanisms. According to the manipulationist approach an explanation ought to be such that it can be used to answer a “what-if-things-had-been-different question.” The article examines whether these three approaches are compatible or not in the case of the social sciences, and (...) it concludes by defending explanatory pluralism. (shrink)

Trends in the history of social science dedicated to the study of crime and punishment are presented as a case study supporting F.A. Hayek's theory of social change. Designing effective social institutions and public policies first requires an accurate vision of how society operates. An accurate model of society further requires scientific methods uniquely suited for the study of human beings as purposeful agents and the study of human institutions as complex social phenomena. If guided by faulty methods, theories are (...) inaccurate and policy outcomes veer from their intentions. Hayek termed such outcomes "abuses of reason". Aiming to replicate the objectivity of physical sciences via formal modeling and statistical measurement, economists throughout the 20th century imposed an excessively technical vision of human decision-making. Policy failures and social problems resulted. This paper argues that the historical trends of applied social science dedicated to crime and punishment can be understood similarly. Formal modeling and statistical measurement continuously displaced methods more attuned to human intentionality and social complexity. In result, amidst a long-run history of intellectual and political change, US law enforcement and criminal punishment policies became technocratic, and outcomes became disjointed from their stated intentions to promote social order and welfare. (shrink)

Having been involved in a slew of recent scandals, many of the world’s largest technology companies embarked on devising numerous codes of ethics, intended to promote improved standards in the conduct of their business. These efforts have attracted largely critical interdisciplinary academic attention. The critics have identified the voluntary character of the industry ethics codes as among the main obstacles to their efficacy. This is because individual industry leaders and employees, flawed human beings that they are, cannot be relied on (...) voluntarily to conform with what justice demands, especially when faced with powerful incentives to pursue their own self-interest instead. Consequently, the critics have recommended a suite of laws and regulations to force the tech companies to better comply with the requirements of justice. At the same time, they have paid little attention to the possibility that individuals acting within the political context, e.g. as lawmakers and regulators, are also imperfect and need not be wholly compliant with what justice demands. This paper argues that such an omission is far from trivial. It creates a heavy argumentative burden on the part of the critics that they by and large fail to discharge. As a result, the case for Big Tech regulation that emerges from the recent literature has substantial lacunae and more work needs to be done before we can accept the critics’ calls for greater state involvement in the industry. (shrink)

Philosophy and Literature is an internationally renowned refereed journal founded by Denis Dutton at the University of Canterbury, Christchurch. It is now published by the Johns Hopkins University Press. Since its inception in 1976, Philosophy and Literature has been concerned with the relation between literary and philosophical studies, publishing articles on the philosophical interpretation of literature as well as the literary treatment of philosophy. Philosophy and Literature has sometimes been regarded as iconoclastic, in the sense that it repudiates academic pretensions, (...) insidious jargon and institutional vogue. Dutton, who remains the editor, still writes a regular column. A distinctive feature of Philosophy and Literature was the annual Bad Writing Contest, held from 1995–98, which sought to identify (and publish) the ‘most stylistically lamentable passages’ of academic prose, often to great amusement. (shrink)

Within the immigration debate, libertarians have typically come down in favor of open borders by defending two main ideas: i) individuals have a right to free movement; and ii) immigration restrictions are economically inefficient, so that lifting them can make everyone better off. This entry describes the rationale for open borders from a libertarian perspective (in part by analogy to the debate around minimum wage laws). Three main objections within the immigration literature are then discussed: i) the view that states (...) may restrict immigration to protect the interests (e.g. jobs) of their domestic needy; ii) the claim that restrictions are justified as a means of preserving culture; and iii) the influential argument that the right to freedom of association entails a right to exclude. These arguments are well-known, and I describe some of the compelling responses to be found in the recent literature. The essay then turns to more neglected critiques. The first concerns how liberal regimes should think about immigration from countries where the dominant norms are illiberal. The second examines the idea that political and economic institutions are sensitive to immigration policy, especially in the long run. Both of these critiques approach the topic from a non-ideal theory perspective, emphasizing the “public choice” dimensions of immigration policy. The entry closes by suggesting that this form of critique is especially important for open-borders libertarians to respond to given their general commitments to non-ideal, non-romantic theorizing in the context of government institutions and policy. (shrink)

: Accusations of infeasibility or utopianism are common in debates over libertarian institutions, but exactly what we mean when we say an idea is “utopian” or “infeasible” is often left unspecified. After reviewing recent philosophical work attempting to clarify the concept of “feasibility,” I consider how the concept has been deployed in the debate among libertarians […].

Methodological norms are seen as rules defining a competitive game, and it is argued that rational recognition-seeking scientists can reach a collective agreement about which specific norms serve better their individual interests, especially if the choice is made `under a veil of ignorance', i.e. , before knowing what theory will be proposed by each scientist. Norms for theory assessment are distinguished from norms for theory choice (or inference rules), and it is argued that pursuit of recognition only affects this second (...) type of rule. An inference rule similar to `eliminative induction' is defended on the basis of such a possible agreement. According to this contractarian approach, both the explanation and the justification of scientific norms only need to refer to the preferences of individual scientists, without assuming the existence of `collective' points of view. (shrink)

The past few years have seen the opening of several antitrust investigations against some of the most dominant and powerful companies in the world—e.g., the U.S. Department of Justice, numerous states, and the Federal Trade Commission have sued Google, Facebook, and Amazon, and the E.U. has launched additional proceedings against Amazon, Apple, Facebook, and Google. This paper looks at the latest trends and developments in the E.U. and the USA and analyzes the different regulatory approaches taken from a distinct business (...) ethics, that is, ordoliberal perspective. The paper aims to derive ordoliberal-inspired antitrust principles and apply them to the current antitrust proceedings and investigations, thereby assessing their strengths and weaknesses. It also aims at developing ordoliberal-inspired reform proposals which might help to strengthen and “harden” modern-day antitrust regimes. (shrink)

In the light of several ongoing antitrust investigations in the E.U. and the U.S., the following research paper analyzes whether ‘big tech’ – same as the big banks – need special regulatory (and economic -political) attention and if so, how an updated form of regulatory policy for the digital era could look like. It does so by utilizing – and reviving – the normative and business -ethical ideals of German ‘neoliberalism’, also known as (classical) ordoliberalism. Especially, Walter Eucken’s work has (...) the potential to inform and enrich the current debate concerning the regulation of big tech. The main goal of the paper is to outline a potentially new regulatory framework – one that combines (and revises) Eucken’s ordoliberalism with the competition policy of the European Union. (shrink)

The paper reconstructs in economic terms Friedman's theorem that the only social responsibility of firms is to increase their profits while staying within legal and ethical rules. A model of three levels of moral conduct is attributed to the firm: (1) self-interested engagement in the market process itself, which reflects according to classical and neoclassical economics an ethical ideal; (2) the obeying of the "rules of the game," largely legal ones; and (3) the creation of ethical capital, which allows moral (...) conduct to enter the market process beyond the rules of the game. Points (1) and (2) position the Friedman theorem in economic terms while point (3) develops an economic revision of the theorem, which was not seen by Friedman. Implications are spelled out for an instrumental stakeholder theory of the firm. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, (...) on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

Against the orthodox view of the Nash equilibrium as “the embodiment of the idea that economic agents are rational” (Aumann, 1985, p 43), some theorists have proposed ‘non-classical’ concepts of rationality in games, arguing that rational agents should be capable of improving upon inefficient equilibrium outcomes. This paper considers some implications of these proposals for economic theory, by focusing on institutional design. I argue that revisionist concepts of rationality conflict with the constraint that institutions should be designed to be incentive-compatible, (...) that is, that they should implement social goals in equilibrium. To resolve this conflict, proponents of revisionist concepts face a choice between three options: (1) reject incentive compatibility as a general constraint, (2) deny that individuals interacting through the designed institutions are rational, or (3) accept that their concepts do not cover institutional design. I critically discuss these options and I argue that a more inclusive concept of rationality, e.g. the one provided by Robert Sugden’s version of team reasoning, holds the most promise for the non-classical project, yielding a novel argument for incentive compatibility as a general constraint. (shrink)

Niklas Luhmann held a skeptical view of the role of morality in the modern society. The present paper reassesses this skepticism in view of his early work showing the regime of functional differentiation to be supported by fundamental human rights. Building on this argument, the paper advocates a more positive view of morality which is shown to be related to the sustainability of social systems in their encompassing societal and natural environment. This view is warranted by the overarching Luhmannian theme (...) of the precariousness of system–environment relations. If this view is accepted, Luhmann’s work on fundamental human rights can be read as an illustration of moral problems caused by the overexpansion tendencies of the political system. This argument is shown to connect up with the ideas of Buchanan and Rawls, as well as to fit in with the Luhmannian construct of the dilemma of structure and function. (shrink)

ABSTRACTThe ten essays in this symposium offer a rich and varied set of challenges to the market-democratic research program. Rather than replying to each critic in turn, I respond only to the main lines of critical challenge raised in this collection: that my account of thick economic liberty is too vague, that economic liberties are not basic, that market democracy gives too little attention to socialist possibilities, that market democracy can accommodate only an impoverished conception of fair equality of opportunity, (...) and, most notably, that market democracy is grounded upon a tendentious or “bourgeois” conception of the person. To meet these criticisms, I refine a central claim of market democracy: that the right to private ownership of productive property is a basic right. In response to the worry that market democracy allows for class domination, I revise market democracy on the issue of bequests. After replying to the critics I extend my challenge to social democracy, presenting an historical argument against liberal democratic socialism. (shrink)

In times of digitalization and globalization, social expectations change at an increasing pace. In order to provide orientation in times of frequent change, this article argues to reinforce the meaning of moral principles, norms, or values as focal points, which build the basis of mutually aligned behavioral expectations. Accordingly, the paper explains the abstract meaning of focal points – having reciprocal expectations as foundation for social cooperation – as well as the particular relevance of the focal point ‘do no harm’.

In Unfit for the Future, Ingmar Persson and Julian Savulescu present a challenging argument in favour of biomedical moral enhancement. In light of the existential threats of climate change, insufficient moral capacities of the human species seem to require a cautiously shaped programme of biomedical moral enhancement. The story of the tragedy of the commons creates the impression that climate catastrophe is unavoidable and consequently gives strength to the argument. The present paper analyses to what extent a policy in favour (...) of biomedical moral enhancement can thereby be justified and puts special emphasis on the political context. By reconstructing the theoretical assumptions of the argument and by taking them seriously, it is revealed that the argument is self-defeating. The tragedy of the commons may make moral enhancement appear necessary, but when it comes to its implementation, a second-order collective action-problem emerges and impedes the execution of the idea. The paper examines several modifications of the argument and shows how it can be based on easier enforceability of BME. While this implies enforcement, it is not an obstacle for the justification of BME. Rather, enforceability might be the decisive advantage of BME over other means. To take account of the global character of climate change, the paper closes with an inquiry of possible justifications of enforced BME on a global level. The upshot of the entire line of argumentation is that Unfit for the Future cannot justify BME because it ignores the nature of the problem of climate protection and political prerequisites of any solution. (shrink)

A number of business ethics theorist have highlighted the potential for economics to contribute to the advancement of business ethics. In response, this article emphasizes the insights of a particular area of economics that could provide such expansion and development. Subjectivist economics may yet provide an effective analytical framework through which to investigate and evaluate business decision making, and hence the ethics of business. Integrating the concepts of uncertainty, time and imagination, subjectivist economic theory contributes to a greater appreciation of (...) economic choice and behaviour. While such notions are often effectively omitted from modern economic analysis to aid formal representation, business ethicists could utilize such concepts more effectively than their colleagues in economic theory. Significantly, the well-known economists who have championed the insights of subjectivist economics have themselves recommended its extension to an analysis of ethics. (shrink)

ABSTRACT:In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the key role of (...) empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals. (shrink)

The nature of learning processes as well as evolutionary considerations suggest that aesthetic judgement is of central importance in the formation of custom. Learning and extrapolation rely on evaluations of non-instrumental features like simplicity, analogy, straightforwardness, and clarity. Further, learning is particularly effective if it is driven by an active desire to uncover new regularities, rather than merely gathering information in a passive way.From an evolutionary perspective, learning has evolved as an adaptation to fast and transitory environmental changes which cannot (...) be effectively traced by the slow and long-term evolutionary processes which take place on the genetic level. The evolutionary raison d’être of learning is to enable the individual to incessantly search for upcoming new regularities, and to act appropriately on them. As learning depends on aesthetic judgement, the evolutionary selection for learning implies an evolutionary molding of an aesthetic sense, and a preference for patterns and patterned action which ultimately leads to the formation of custom and social learning. The paper presents, thus, an evolutionary underpinning for the behavioral tendencies underlying my theory of custom. (shrink)

Schools of economic ethics inspired by Buchanan propose viewing ethical conflicts as prisoners’ dilemmas to facilitate solutions based on Pareto-improving institutional changes. Given that healthcare is determined by complex institutional arrangements, it has been claimed that this approach is also suitable for business ethics in healthcare. To scrutinize this claim, this research systematically searched for studies reporting PD structures in healthcare. PubMed, EconLit, and EconBiz were searched to find articles in German and English. Study type, characteristics of the game, and (...) the proposed means to overcome the dilemma were extracted and analyzed for aspects supporting or challenging the claim. Across 53 studies, 68 descriptions of various dilemmas in healthcare and public health were identified. Many authors successfully developed proposals for institutional change to overcome these dilemmas. However, many of these analyses exhibited limitations such as oversimplifications or inconsistencies. Also, the quality of evidence on both the characteristics of dilemmas and the effectiveness of proposed solutions was very poor. The subsamples of studies that explicitly cited the ethical approach were disjunct from those that applied empirical methods to analyze the dilemmas. The large number of identified PDs indicates that economic ethics is relevant to healthcare. However, there is a need for further evidence to substantiate both the descriptive and prescriptive claims of this ethical theory. It should thus be seen as a complement that needs justification, rather than a substitute superior to other ethical frameworks. (shrink)

The gap between economic rationality, as embedded in utility maximization, and ethical rationality, identified with a set of rules that prescribe the right course of action, has been a challenging issue for economists, philosophers, and business ethicists. Despite the difference and the noncompetition between a scientific economic approach of economics and business ethics, and a behavioral and philosophical one, we highlight the importance of the Aristotelian concept of prudence or phronesis applied to business activity. Phronesis allows for a conceptualization of (...) rationality that can be simultaneously applied to economics and ethics. It also allows conceiving the intrinsically ethical nature of economic rationality. This relationship requires an appropriate education and the intervention of the state. (shrink)

This article addresses major arguments in the controversy about the “rationality” of moral behavior: can moral behavior be explained by rational choice theory (RCT)? The two positions discussed are the incentives thesis (norms are incentives as any other costs and benefits) and the autonomy thesis claiming that moral behavior has nothing to do with utility. The article analyses arguments for the autonomy thesis by J. Elster, A. Etzioni, and J. G. March and J. P. Olsen. Finally, the general claim is (...) discussed whether norm following and norm emergence are utility maximizing. The conclusion is that the autonomy thesis is not tenable if one applies a wide subjectivist, social psychological version of RCT that includes the assumption of “bounded rationality.” The autonomy thesis is only compatible with a narrow version of RCT that excludes internal outcomes and that refers to norms that do not have external outcomes. It is argued that such a narrow version is not capable of explaining many forms of behavior social scientists are interested in. (shrink)

Self-Interest and Public Interest in Western Politics showed that the public, politicians, and bureaucrats are often public spirited. But this does not invalidate public-choice theory. Public-choice theory is an ideal type, not a claim that self-interest explains all political behavior. Instead, public-choice theory is useful in creating rules and institutions that guard against the worst case, which would be universal self-interestedness in politics. In contrast, the public-interest hypothesis is neither a comprehensive explanation of political behavior nor a sound basis for (...) institutional design. (shrink)

ABSTRACT Self-Interest and Public Interest in Western Politics showed that the public, politicians, and bureaucrats are often public spirited. But this does not invalidate public-choice theory. Public-choice theory is an ideal type, not a claim that self-interest explains all political behavior. Instead, public-choice theory is useful in creating rules and institutions that guard against the worst case, which would be universal self-interestedness in politics. In contrast, the public-interest hypothesis is neither a comprehensive explanation of political behavior nor a sound basis (...) for institutional design. (shrink)

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)

This article discusses the possibility of an economic foundation for a work and savings ethic. In particular, James M. Buchanan has, in his late works, endorsed traditional 'Puritan' demands for working and saving more, while arguing that this is beneficial for all members of a society. I will question Buchanan's analysis of the 'Puritan' ethic both in normative and methodological respects before aiming at a constructive interpretation.

Many traditional conceptions of ethics use categories and arguments that have been developed under conditions of pre-modern societies and are not useful in the age of globalisation anymore. I argue that we need an economic ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. This conception is then elaborated further in the area of business ethics. It is illustrated in the case for banning child labour.

This paper draws a connection between recentdevelopments in naturalized philosophyof science and the Buchanan research programin economics. Economic approaches innaturalized philosophy of science canbe combined to form an economic philosophy ofscience. After giving an overview of someof these approaches, I lay out the fundamentalsof the Buchanan research program. I arguethat its main elements are a theory of interactionsand a normative foundation in consensus whichhelp to answer some important criticismsof economic philosophy of science.

The focus of the present study was the rationality of moral behaviour and moral conviction. Assumptions like "morality pays" or "good ethics is good business" are not a priori right. Whether morality as personal conviction is also economically rational or not depends in large part on the institutional setting of a society and the likelihood that immoral behaviour will be sanctioned. The systematic approach to morality thus appears to be political economy and the institutional setting: rules and laws. However, the (...) conditions for morality depend not only on the formal structures but also on the informal structures of rules and sanctions. Hence, the systematic approach to morality is most closely linked with the culture of a society; the efficiency of individual morality depends on social conditions. It is costly for individuals and societies to establish and entertain conditions that set clear incentives for moral behaviour. In this context, moral competencies, learning, and education play a crucial role. (shrink)

The recent progress in the development of autonomous cars has seen ethical questions come to the forefront. In particular, life and death decisions regarding the behavior of self-driving cars in trolley dilemma situations are attracting widespread interest in the recent debate. In this essay we want to ask whether we should implement a mandatory ethics setting for the whole of society or, whether every driver should have the choice to select his own personal ethics setting. While the consensus view seems (...) to be that people would not be willing to use an automated car that might sacrifice themselves in a dilemma situation, we will defend the somewhat contra-intuitive claim that this would be nevertheless in their best interest. The reason is, simply put, that a PES regime would most likely result in a prisoner’s dilemma. (shrink)

This paper analyses whether the aggregation of individual happiness scores to a National Happiness Index can still be trusted once governments have proclaimed their main objective to be the pursuit—or even maximization—of this National Happiness Index. The answer to this investigation is clear-cut: as soon as the National Happiness Index has become a policy goal, it can no longer be trusted to reflect people’s true happiness. Rather, the Index will be systematically distorted due to the incentive for citizens to answer (...) strategically and the incentive for government to manipulate the Index in its favour. Such a distortion would arise even if the measurement of subjective well-being correctly reflected actual happiness before the intervention of government. Governments in a democracy should establish the conditions enabling individuals to become happy. The valuable and important results of happiness research should be introduced into the political process. Each person should be free to pursue happiness according to his or her preferences. This process is supported by obedience to the rule of law, human rights and free media, as well as by extended political participation rights, decentralized public decision-making, an open and effective education system fostering upward mobility and the possibility to find suitable employment. (shrink)

We show that if identical members first decide on the sharing technology (stage I) taking into account their subsequent effort supply (stage II) decisions, the resulting contractarian sharing technology (constitution) channels individual self-seeking towards team (Pareto) optimum. Voting with one's feet and open entry can ensure symmetry and majoritarian decision making in the real world teams. The model helps explain the differential performance of the Israeli Kibbutz and the Russian Kolkhoz.

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.

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

When Buchanan discusses the constitutional changes that members of society would agree to, he uses the status quo as the default. If no agreement occurs, we continue with the constitutional rules that are currently in place. This article argues that this choice results in an unjustified status quo bias. To make this point, I examine and challenge three possible arguments in favor of using the status quo as the default. Then, I give two arguments in favor of a form of (...) contractarianism that does not use the status quo as a default. (shrink)

La teoría de la justicia de Rawls ha sido acusada de estar edificada sobre supuestos individualistas. Quienes realizan estas críticas asumen que una sociedad que adopte los principios y las formas de justificación rawlsianos será intrínsecamente inhóspita a la vida asociativa, al desarrollo de lógicas de pertenencia comunitaria y a los discursos de corte identitario. Este artículo se pregunta si esta acusación está debidamente fundamentada. Para ello distingue cuatro maneras en las que una teoría de la justicia puede ser considerada (...) individualista. Estas cuatro maneras son llamadas: individualismo metodológico, individualismo ontológico, individualismo ético e individualismo político. Se sostiene que no hace falta ser un individualista metodológico para ser un “rawlsiano sustantivo”, aunque sí es necesario para ser un “rawlsiano metodológico”. Luego se afirma que ni el individualismo ontológico ni el individualismo ético forman parte de los supuestos de la teoría de Rawls, pero que el individualismo político está en el corazón mismo de su teoría. (shrink)

The thesis contrasts two hostile and divergent intellectual paradigms in social sciences: rational choice and critical theory. Both rational choice and critical theory offer contrasting perspectives on the structures of social interaction. However, both critical theory and rational choice theory share overlapping concerns ie., both are preoccupied with determining what rational can mean in the realm of social and political interaction. In the case of rational choice paradigm, instrumental reason forms the cornerstone of the theoretical edifice. Ever since the publication (...) of Jurgen Habermas' The lhemy qf Communicative Action Vol. / and Vol. II instrumental reason has come under severe attack. His critique anchors on a theory of communicative reason. What makes Habermas' work distinctive is that he does not regard instrumental reason as the single inevitable concomitant of modernity. Habermas sees in modernity an alternative way of conceptualising social interaction in terms of communication rather than strategy. So in a way, his work is a challenge to the defenders of modernity aiming to build a unified social science Jurgen Habermas advances the notion of communicative reason as the centerpiece of a social theory as opposed to instrumental reason. By providing a systematic grounding of the concept of reason in human language, he hopes to establish normative basis of critical theory. This model of reaching agreement or consent constitutes a process of dialogue in which reasons are exchanged between participants. This process is perceived to be a joint search for consensus. Such a dialogic concept of collective choice would necessarily work not with fixed preferences to be amalgamated but with preferences that are altered or modified as competing reasons are advanced in the course of discussion. In rational discussion, the only thing supposed to count is the power of better argument. Both rational choice and critical theory conceptualise politics in different ways. Rational choice theories critique democratic mechanisms failing to generate general will. Consequently, the political prescriptions offered are limited government or market. On the contrary, the political implications of Habermas' theory of deliberative democracy is anchored in the notion of liberal public sphere envisaging a cognitivist, rationalist vision in which discourse forms a critical normative basis for evaluating the political and moral principles. (shrink)

A necessary condition for a group being taken as a rational agent is that its choices and judgements are ‘logically contestable’, but this can lead to problems of aggregation, as Arrow impossibility theorem or the discursive dilemma. This paper proposes a contractarian or constitutional approach: the relevant thing is what aggregation mechanisms would be preferred by the members of the group. Two distinctions need to be made: first, judgement aggregation is not aggregation of decisions, and judgement aggregation needs be distinguished (...) from the aggregation of information: we assume that every member of the group has already taken into account the opinions of the other members, by means of a process of public deliberation, but they may end having different opinions; we also assume that the members are rational, so that they have no reasons to accept further changes in their individual opinions. So, from the epistemic point of view, the collective judgment is not a 'better' opinion than those of the individual members. The collective judgement is better seen as a kind of compromise, the outcome of a ‘bargain’, so to say. Basically, we assume that individuals will have an interest in choosing a specific aggregation function by taking into account how are they affected by the collective actions carried out by the group, and grounded on the chosen collective judgement. (shrink)

The purpose of this article is to provide an alternative antitrust model to the mainstream model that is used in competition policy. I call it the InstitutionalEvolutionary Antitrust Model. In order to construct an antitrust model one needs both empirical knowledge and considerations of how to adequately deal with norms. The analysis of competition as an evolutionary process that unfolds within legal rules provides the empirical foundation for the model. The development of the normative dimension involves the elaboration of a (...) comparative approach. Building on those foundations the main features of the Institutional-Evolutionary Model are sketched out and it is shown that its use leads to systematically different outcomes and conclusions than the dominant antitrust ideals. (shrink)