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)

There is a perennial ambiguity in the rule-of-law preposition: it predicates that the law shall rule, but which law? This legal loophole has led to a diverse array of interpretations of the concept. Of these, two appear particularly adverse to what the rule of law should primarily be—the rulership of the law—yet still remain dominant. On the one hand, the rule of law is intended to be the vehicle to deliver above-the-law goods such as human rights or other individual entitlements (...) like property, and to forever shield them against any other force, including the law. On the other hand, the rule of law is believed to be a tool at the rulers’ disposal, who make use of the law but are not bound by it, for either legal or practical reasons. In both cases, a pre-legal setting for society allocates rulership to something but not the law, against the very essence of the ideal: an authoritative legal practice for the sake of regulating the present society. As such, the rule of law has to meet certain requirements of craftsmanship, like conditions in law-making and law-enforcement, and sources, which are to be democratically underpinned. (shrink)

L’objectif de cet article est double. Premièrement, nous proposons une définition économique du mal. Un agent accomplit une action économique malfaisante s’il blesse (ou incite à blesser) intentionnellement, matériellement, un autre agent, s’il subit une perte matérielle à la suite de cette action et si la possibilité d’un choix plus gratifiant pour lui existait. Deuxièmement, nous discutons de la manière dont nous pouvons catégoriser différentes théories du mal économique et différentes actions économiquement malfaisantes sur la base d’une analyse de la (...) relation entre l’agent malfaisant et l’autre blessé. Notre article met en lumière qu’un type particulier de mal économique n’a pas encore reçu l’attention requise. Ce type de mal économique se caractérise par une relation spécifique entre l’agent et l’autre : l’agent ne se soucie de l’autre que dans la mesure où le gain matériel de l’autre est concerné – et seulement dans la mesure où il s’assure que ce dernier sera négativement impacté par son action. L’article cite également des preuves de tels comportements. JEL Codes : D74, P16, P48, Z13. (shrink)

This paper considers contractarianism as a method of justification. The analysis accepts the key tenets of contractarianism: expected utility maximization, unanimity as the criteria of acceptance, and social-scientific uncertainty of modelled agents. In addition to these three features, however, the analysis introduces a fourth feature: a criteria of rational belief formation, viz. Bayesian belief updating. Using a formal model, this paper identifies a decisive objection to contractarian justification. Insofar as contractarian projects approximate the Agreement Model, therefore, they fail to justify (...) their conclusions. Insofar as they fail to approximate the Agreement Model, they must explain which modelling assumption they reject. (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)

This forum contribution addresses two major themes in de Goede’s original essay on ‘Financial security’: (1) the relationship between stable markets and the proverbial ‘security dilemma’; and (2) the development of new decision-technologies to address risk in the post-World War II period. Its argument is that the confluence of these two themes through rational choice theory represents a fundamental re-evaluation of the security dilemma and its relationship to the rule of law governing market relations, ushering in an era of perpetual (...) physical and financial insecurity. (shrink)

Production in sweatshops entails an elevated risk of occupational injury and sickness due to accidents and exposure to dangerous working conditions. As most sweatshop locations lack basic social security systems, health problems have severe consequences for affected workers. Against this background, this article considers what obligations employers of sweatshop labor have to their workers, and how they should meet them. Based on core libertarian concepts, it shows that they are morally responsible for health problems caused by their management decisions, that (...) they should compensate affected workers, and that they must prevent potentially irreversible health problems. In line with Nozick’s contractarian method, the article further argues that these obligations should be implemented through a compulsory employment injury insurance system. Such a system would impose industry-wide health and safety standards, in contrast to the view that libertarianism excludes any labor regulation for the protection of workers, as an illegitimate interference in voluntary labor contracts. (shrink)

Volume 31, Issue 1, December 2020, Page 47-66.

Głównym celem tego artykułu jest wyjaśnienie, na czym polega specyfika instytucji wymogu uzyskania terytorialnego rozłożenia głosów w wyborach prezydenckich, który funkcjonuje w trzech wieloetnicznych państwach (Nigerii od 1979 r., Kenii od 1992 r. i Indonezji od 2001 r.) oraz określenie panujących w tych państwach warunków politycznych, które przyczyniły się do jej wprowadzenia i trwania. W końcowej części artykułu, dzięki porównaniu trzech kazusów, zostały wskazane szczegółowe różnice występujące obecnie między nimi. W artykule zostały również zaprezentowane wnioski dotyczące dotychczasowych doświadczeń związanych z (...) funkcjonowaniem przedmiotowej instytucji. Pozwolą one wstępnie ocenić, czy uprawnione jest stwierdzenie, że jej zastosowanie wpływa na obniżenie konfliktowych zachowań w relacjach między grupami etnicznymi i na budowanie międzyetnicznego porozumienia. (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.

Democratic governance is under increasing scrutiny as a result of waning trust in political institutions, and a widening gap between public aspirations and government performance. The purpose of this paper is to address what is currently diagnosed as a democratic deficit by calling into question the notion of consent, procedures advocated in its pursuit, and its relationship with democracy. To this purpose, the paper reviews seminal works that have investigated the nexus of democracy and consent over time: The Calculus of (...) Consent, The Engineering of Consent and Manufacturing Consent. In this, it presents different understandings of the processes whereby consent is arrived at, and questions whether they support or undermine democratic aspirations. (shrink)

Michael Oakeshott’s account of political economy is claimed to have found its ‘apotheosis under Thatcherism’. Against critics who align him with a preference for small government, this article poin...

As behavioural economics reveals, human decision-making deviates from neoclassical assumptions about human behaviour and people (often) fail to make the ‘right’ welfare-enhancing choice. The purpose of Sunstein and Thaler’s concept of ‘nudge’ is to improve individual welfare. To provide normative justification, they argue that the only relevant normative criterion is whether the individual is ‘better off as judged by themselves’, so that the direction in which people are to be nudged is defined by their own preferences. In light of behavioural (...) findings, however, people’s choices do not provide a sound basis for eliciting preferences and thus for assessing welfare. In this paper, I aim to challenge Sunstein and Thaler’s normative view, arguing that it is unreasonable to rely on conventional welfare economics, particularly considering the given context. Sunstein and Thaler depend on an approach of ‘preference purification’ which assumes informed, latent, and true preferences: As a result they face crucial methodological, epistemological, and practical objections, and cannot show how their approach enhances individual welfare. By building on the concepts of R. Sugden and C. Schubert, I develop an alternative normative framework for behavioural public policy, based on a contractualist perspective in which people may consent to collective choice rules in order to align future behaviour with values, to achieve particular goals or to preserve personal integrity. Individual consent and citizens’ participation and deliberation are crucial to this approach. This contractualist approach may provide a normative justification for behavioural public policy, and help to reconcile behavioural and normative economics. (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)

How to demarcate the political units within which democracy will be practiced? Although recent years have witnessed a steadily increasing academic interest in this question concerning the boundary problem in democratic theory, social contract theory’s potential for solving it has largely been ignored. In fact, contract views are premised on the assumption of a given people and so presuppose what requires legitimization: the existence of a demarcated group of individuals materializing, as it were, from nowhere and whose members agree among (...) themselves to establish a political order. In order to fill this gap in social contract theory, a distinction is made between three kinds of contract views: Lockean political voluntarism, contractarianism, and contractualism. Each of these views can be interpreted in such a way that it offers a democratic solution to the boundary problem. Ultimately, however, a Rawlsian interpretation of the contractualist solution is defended. (shrink)

This article addresses the problem of ‘the legitimacy of the people’, that is, what constitutes the legitimate demarcation of the political units within which democracy is practiced? It is commonplace among philosophers to argue that this problem cannot be solved by appeal to democratic procedure because every attempt to do so results in an infinite regress. Based on a social contract theoretical analysis of the problem, this view is rejected. Although contract theorists have ignored the problem of the legitimacy of (...) the people, this article nevertheless argues for one specific, and currently dominant, type of contract view – ‘contractarianism’ – that it contains the conceptual tools to solve it. In a contractarian view, the people are understood as a cooperative venture for mutual advantage and accordingly consist of only those individuals for whom it is mutually beneficial to bind themselves to one another. It is argued that contractarianism offers a procedurally democratic solution to the problem of the legitimacy of the people that does not cause an infinite regress. Furthermore, this article refutes a classic criticism of contractarianism’s account of moral standing. Finally, the article demonstrates contractarianism’s practical implications for one specific articulation of the problem of the legitimacy of the people, namely, immigration. (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)

The problem analysed in this paper is whether we can gain knowledge by using valid inferences, and how we can explain this process from a model-theoretic perspective. According to the paradox of inference (Cohen & Nagel 1936/1998, 173), it is logically impossible for an inference to be both valid and its conclusion to possess novelty with respect to the premises. I argue in this paper that valid inference has an epistemic significance, i.e., it can be used by an agent to (...) enlarge his knowledge, and this significance can be accounted in model-theoretic terms. I will argue first that the paradox is based on an equivocation, namely, it arises because logical containment, i.e., logical implication, is identified with epistemological containment, i.e., the knowledge of the premises entails the knowledge of the conclusion. Second, I will argue that a truth-conditional theory of meaning has the necessary resources to explain the epistemic significance of valid inferences. I will explain this epistemic significance starting from Carnap’s semantic theory of meaning and Tarski’s notion of satisfaction. In this way I will counter (Prawitz 2012b)’s claim that a truth-conditional theory of meaning is not able to account the legitimacy of valid inferences, i.e., their epistemic significance. (shrink)

Discoverers of “market failures” as well as advocates of the general efficiency of a “true, unhampered market” sometimes seem to disregard the fundamental fact that there is no such thing as a “market as such.” What we call a market is always a system of social interaction characterized by a specific institutional framework, that is, by a set of rules defining certain restrictions on the behavior of the market participants, whether these rules are informal, enforced by private sanctions, or formal, (...) enforced by a particular agency, the “protective state,” in J. M. Buchanan's terminology. (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)

Despite the diversity and important disagreement which characterizes theorizing in political philosophy, most contemporary theories of justice yield remarkably similar verdicts on the moral adequacy of current distributions of wealth, income, and opportunity. By almost any standard of justice defended today, we live in a profoundly unjust world. It is obvious, for instance, that utilitarianism, the difference principle, equality of resources, and even modest-sounding principles of equality of opportunity all condemn the yawning gulf which separates the rich and the poor (...) of the world. Even Nozick's recommendation that the difference principle be used as a rough principle for rectifying historical injustice indicates how little immediate practical difference there is between Rawls's theory and its supposed libertarian antithesis. All this suggests that there is a surprising theoretical consensus about the immediate practical demands of justice. In short, moving toward justice requires substantially reducing the dramatic inequalities which plague our world. (shrink)

The Adam Smith problem refers to a claimed inconsistency between the Theory of Moral Sentiments and the Wealth of Nations, regarding the portrayal of human nature in these two books. Previous research predominantly resolved the claimed inconsistency by uncovering virtuous, less selfish character traits in the Wealth of Nations. This article voices caution. I acknowledge – on methodological grounds – fundamental differences regarding the portrayal of human nature in Smith’s behavioral ethics, i.e. the Theory of Moral Sentiments, as compared with (...) Smith’s economic research. The key argument is that Smith’s two books address different research problems and hence do not, need not and cannot adopt the same view of human nature – for methodological reasons, so my argument. Adam Smith scholarship overlooked that Smith himself in considerable degrees understood “economic man” as a heuristic abstraction. I connect to the philosophies of science of Imre Lakatos and Karl Popper. (shrink)

Part one of this paper considers the question of property rights in general and asks how such rights can be justified, contrasting Consequentialist with other approaches and concludes that it is impossible to avoid a broadly Consequentialist approach. Part two considers the question of intellectual property (IP) and asks how property rights justifications apply to it. The basic economics if IP is indispensable in this discussion. Finally, part three, considers IP in the light of modern technological developments. I conclude that (...) the real dangers lie more in the specific ways government and special interests respond to this technology than from the nature of IP rights themselves. (shrink)

The article scrutinises the complex relation between late twentieth century liberal and environmental thought. It concludes that if the key values of contemporary liberal and environmental thought are compared then the prognosis looks gloomy. There are implicit and deep tensions over most value questions. In order to provide a coherent focus for this analysis, the paper addresses the issue of liberal justice, namely, can liberal theories of justice be sensitively applied to environmental questions? The answer to this question is that (...) for much environmental thought, it is the very values and practices implicit within liberal justice theory which now constitute the key environmental danger. (shrink)

An influential strand in recent action-theory employs constitutivist arguments in order to present accounts of individual agency and practical identity. I argue for an extension of this framework into the interpersonal realm, and suggest using it to reassess issues in jurisprudence. A legal system is an instantiation of the solution to the inescapable tasks of self-constituting action and identity-formation in the presence of other agents. Law's validity and normativity can be enlightened when the constitutivist approach considers the external prerequisites of (...) individuals' self-conceptions qua agents. More specifically, this argumentative strategy allows a reassessment of Fuller's “internal morality of law.” Whereas, pace Fuller, morally substantive conclusions cannot be derived from formal criteria of legality, there are unconditional normative requirements that constrain law. (shrink)

This paper argues that there are areas of political behavior for which the usual assumption of wealth maximizing homo economicus is to narrow to generate convincing explanation of behavior. In particular, it is argued that for many political decisions, people choose according to some set of moral preconceptions while for others, people have insufficient information to make economic choices even if they were inclined to do so. This implies that normative public choice can only be part of a political decision (...) process in which non-pecuniary concerns influence choices. Finally, constitutional economics insofar as it is conceptually conceived, must presume some set of moral and informational properties of the parties to the social contract. (shrink)

In his posthumous work Power and Prosperity , the economist Mancur Olson asked why the economies of many of those countries of the former Soviet Union and other emergent countries that had at last adapted to the theoretical and practical presuppositions of the market economy had not seen themselves, notwithstanding, recompensed with the prosperity that this economic model promises to all those who follow its rules. The core of the answer was in a long paragraph that is perhaps elemental to (...) a jurist but may be original and worth remembering as an innovative thesis in the world of economists. (shrink)

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

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)

With the publication of A Theory of Justice in 1971, John Rawls not only rejuvenated contemporary political philosophy but also defended a Kantian form of Enlightenment liberalism called “justice as fairness.” Enlightenment liberalism stresses the development and exercise of our capacity for autonomy, while Reformation liberalism emphasizes diversity and the toleration that encourages it. These two strands of liberalism are often mutually supporting, but they conflict in a surprising number of cases, whether over the accommodation of group difference, the design (...) of civic education, or the promotion of liberal values internationally. During the 1980’s, however, Rawls began to jettison key Kantian characteristics of his theory, a process culminating in the 1993 release of Political Liberalism and completing the transformation of justice as fairness into a Reformation liberalism. -/- Reconstructing Rawls argues that this transformation was a tragic mistake because it jeopardized the most important features of his theory, viz. the lexical priorities of right, liberty, and fair equality of opportunity as well as the difference principle. Controversially, this book contends that Rawls’s so-called “political turn,” motivated by a newfound interest in diversity and the accommodation of difference, has been unhealthy for autonomy-based liberalism and has pushed liberalism more broadly towards cultural relativism, be it in the guise of liberal multiculturalism or critiques of cosmopolitan distributive-justice theories. The book then demonstrates that the central elements of justice as fairness can only be defended within the context of a Kantian Enlightenment liberalism and that Rawls’s hope for a more pluralistic grounding for his theory, endorsed by a wide variety of belief systems present in modern democratic societies, is illusory. -/- Reconstructing Rawls is the first book to systematically compare Rawls’s and Kant’s theories and the first to offer an internal critique and reconstruction of justice as fairness, reconceiving it as a comprehensive, universalistic Kantian liberalism. By doing so, it gives us both the vision of a liberal world order—“a republicanism of all states, together and separately,” as Kant put it—and a mode of justification addressed to all men and women, not as members of particular nations, races, and faiths, but as human beings, as citizens of the world. In short, it reclaims Rawls for the Enlightenment. (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)

The concept of fairness as mutual advantage has been developed in the tradition of social contract theory. In this framework society is seen as an enterprise that coordinates the activities of its members in order to advance their interests. All acceptable social rules are in the interest of each member of society. Rules are agreed unanimously – no rules can be enforced against the interest of someone. It is assumed that individuals are basically self-interested and rational. Radical libertarianism claims that (...) individuals do not have to accept any a priori constraints on their behavior. “Libertarianism focuses on negative freedom”. (shrink)

We expound an economic explanation of the nature, causes, and effects of moral conventions. We show, first, that systems of moral rules lead to Pareto-efficiency; second, that the efficiency they induce may be interpreted as the outcome of an exchange of courtesies; third, and finally, that moral exchange takes place whenever the costs of transaction are sufficiently low. We also explain various phenomena, including the diversity of moral rules in time and space. Finally, we give sufficient conditions for universal moral (...) rules to emerge in a sequence of agreements involving two agents only at a time. (shrink)

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

Can private companies legitimately regulate sharing markets, and if yes, how? Whereas scholars have either criticized sharing platforms for expanding into private and public arenas or welcomed them to counterbalance encroaching government regulations, studies document their unbridled popularity. On the basis of a special version of social contracts theory pioneered by James Buchanan, we develop a heuristics that helps guide reasoning about the legitimacy of the sharing economy’s regulatory function. First, we discuss the conditions under which free and responsible individuals (...) deliberately subject themselves to rules without their prior direct participation, that is, exit, voice, and constitutional limits. Second, we suggest sharing platforms can use novel ordo-responsibilities to establish a sharing constitution that takes these conditions into account. Third, we argue that sharing platforms can legitimately do so within an enabling institutional environment in society, the provision of which relies on the joint efforts of sharing platforms, political actors, and civil society. (shrink)

Different why-questions emerge under different contexts and require different information in order to be addressed. Hence a relevance relation can hardly be invariant across contexts. However, what is indeed common under any possible context is that all explananda require scientific information in order to be explained. So no scientific information is in principle explanatorily irrelevant, it only becomes so under certain contexts. In view of this, scientific thought experiments can offer explanations, should we analyze their representational strategies. Their representations involve (...) empirical as well as hypothetical statements. I call this the “representational mingling” which bears scientific information that can explain events. Buchanan’s thought experiment from constitutional economics is examined to show how mingled representations explain. (shrink)

This essay explains how to use the calculus of consent framework to think more rigorously about self-governance, and applies this framework to the issue of evaluating federal regulatory agencies. Robust political economy is the idea that institutions should be designed to work well even under weak assumptions about decision-makers’ knowledge and benevolence. I show how the calculus of consent can be used to analyze both incentives and knowledge problems. The calculus is simultaneously a theory of self-governance and a tool for (...) robust political economy analysis. Applying this framework to the case of public administration leads to the conclusion that private goods (such as medicine) tend to be over-regulated, public goods tend to be under-regulated (such as enabling too much pollution), and regulatory agencies tend to be over-centralized (and should in most cases either be replaced with certification markets or moved to state level). (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)

Thomas Piketty’s Capital and Ideology offers a powerful critique of ideological justifications for inequality in capitalist societies. Does this mean we should reject capitalist institutions altogether? This paper defends some aspects of capitalism by explaining the epistemic function of market economies and their ability to harness capital to meet the needs of the relatively disadvantaged. We support this classical liberal position with reference to empirical research on historical trends in inequality that challenges some of Piketty’s interpretations of the data. Then (...) we discuss the implications of this position in terms of limits on the efficacy of participatory governance within firms and the capacity of the state to levy systematic taxes on wealth. (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)

Contractarians aim to derive moral principles from the dictates of instrumental rationality alone. But it is well-known that contractarian moral theories struggle to identify normative principles that are both uniquely rational and morally compelling. Michael Moehler's recent book, *Minimal Morality* seeks to avoid these difficulties by developing a novel "two-level" social contract theory, which restricts the scope of contractarian morality to cases of deep and persistent moral disagreement. Yet Moehler remains ambitious, arguing that a restricted version of Kant's categorical imperative (...) is a uniquely rational principle of conflict resolution. We develop a formal model of Moehler's informal game-theoretic argument, which reconstructs a valid argument for Moehler's conclusion. This model, in turn, enables us to expose how a successful argument for Moehler's contractarian principle rests on assumptions that can only be justified by subtle yet significant departures from the standard conception of rationality. We thus extend our understanding of familiar contractarian difficulties by showing how they arise even if we restrict the scope of contractarian morality to a domain where its application seems both promising and necessary. We show that the problem lies not in contractarians' immodest ambitions but in the modest resources rationality can offer to satisfy them. (shrink)

ABSTRACTOne of the recurrent motifs in political thought is the idea of the social contract, according to which a society, a government, or moral principles depend for their existence on agreements...

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)

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’.

: 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 […].