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)

Two interlocutors, Philip Pettit and a student, are exchanging views on liberal political and economic philosophy during lunch at Prospect House, the faculty club of Princeton. The dialogue begins with clarifications of the notion of liberty, and, against objections of the student, Pettit introduces and defends his own conception of freedom as non-domination rather than as non-interference. It proceeds with an exchange of arguments regarding the different kinds of institutional settings that entrench liberty and all the other things valued by (...) humans. The interlocutors reach a preliminary consensus that in order to substantiate the republican ideal of freedom as non-domination in concrete institutional realities, two things are required: the establishment of a mixed constitution – so that no single, unconstrained body can exercise lawmaking and other government functions – as well as eternal vigilance on the part of the citizens. The second part of the dialogue deals with a major challenge to the republican political philosophy expressed by the student: the issue of non-domination in markets, which is diagnosed as an important lacuna in republican thought. (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)

InMorals by Agreement, David Gauthier (1986) argues that it is rational to intend to cooperate, even in single-play Prisoner's Dilemma games, provided (1) your co-player has a similar intention; (2) both intentions can be revealed to the other player. To this thesis four objections are made. (a) In a strategic decision the parameters on which the argument relies cannot be supposed to be given. (b) Of each pair ofa-symmetric intentions at least one is not rational. But it is impossible to (...) form symmetric intentions to cooperate conditionally. For the condition on which the decision depends cannot be fulfilled without deciding. (c) If one's intention has to be ascertained on the basis of information about one's past performance, it is straightforwardly rational to intend to cooperate, but there is no reason to do so in a single-play PD. (d) The argument cannot be extended ton-person games which are Gauthier's principal concern. (shrink)

This thesis attempts to justify a normative role for methodology by sketching a pragmatic way out of the dichotomy between two major strands in economic methodology: empiricism and postmodernism. I discuss several methodological approaches and assess their aptness for theory appraisal in economics. I begin with the most common views on methodology and argue why they are each ill-suited for giving methodological prescriptions to economics. Then, I consider positions that avoid the errors of empiricism and postmodernism. I specifically examine why (...) the two major strands of methodological criticism fail to give helpful methodological advice to economists and sketch out a pragmatic approach that can do this. (shrink)

The aim of this paper is to contribute to the development of a theory of economic freedom. In this endeavor, we build our framework on the Hayekian notion of freedom because it explicitly embodies the obvious link between freedom and the state: freedom is an absence of state coercion except for that which enforces abstract, general rules known beforehand. We derive two propositions from this Hayekian thesis and elaborate on them, leading to a categorization of government actions from the viewpoint (...) of economic freedom in which the criterion against which coercive governmental actions must be evaluated is the rule of law, meaning a government’s reliance on general, abstract rules. As an implication, our framework allows us to argue for the imperative differentiation between “efficiency” and “economic freedom” as two separate criteria against which government actions can and must be evaluated. We also show that our framework may help explain the process through which economic freedom enhances growth. (shrink)

Various writers in the Western liberal and libertarian tradition have challenged the argument that enforcement of law and protection of property rights are public goods that must be provided by governments. Many of these writers argue explicitly for the provision of law enforcement services through private market relations.

The topic of Chief Executive Officer (CEO) compensation has been a focus of interest for many years. The purpose of this article is to explore the ethical dimensions of various generally accepted theories of CEO renumeration. We argue that a contractarian approach, based on the Kantian ethical framework, can be used to augment the existing contingent pay models.While the neoclassical economic model of the firm views the maximization of the shareholders'' wealth as the sole responsibility of top management, a contractarian (...) approach regards the balancing of various stakeholders'' interests as the primary task of top management. Ethical problems emerge when there are divergent, yet equally justifiable interests which compete in order to channel organizational resources to meet their own needs. In this situation, given the inherent ambiguities and ever present possibilities of multiple perspectives, it may not always be feasible to provide a categorical answer to the question of whether the CEO''s decisions are ethical. We suggest that a broad interpretation of the neoclassical theory of the firm, one that is grounded in Kantian and contractarian ethics, can serve as a basis for a reconciliation of different theories of executive compensation. (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...

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)

Friedman’s view on corporate social responsibility is often accused of being incoherent and of setting rather low ethical standards for managers. This paper outlines Friedman’s ethical expectations for corporate executives against the backdrop of the strong emphasis he puts on individual freedom. Doing so reveals that the ethical standards he imposes on managers can be strictly deduced from individual freedom and that these standards involve both deontological norms and the fulfillment of particular stakeholder expectations. These insights illustrate the necessity to (...) reconsider how Friedman’s approach relates to other important normative theories of business ethics. Contrasting Friedman’s approach with stakeholder theory and integrative social contract theory—when considering the importance he assigns to individual freedom—shows how and why these approaches differ. Still, the comparison also highlights striking similarities. This paper contributes to a better understanding of Friedman’s position—which is still one of the most influential approaches in business ethics research—because it enables a differentiated look at its strengths and weaknesses. (shrink)

A generation of social theorists have argued that if free-rider considerations show that certain collective action predicaments are unresolvable under individual, rational choice – unresolvable under an arrangement where each is free to pursue their own relative advantage – then those considerations will equally show that the predicaments cannot be resolved by recourse to norms (Buchanan, 1975, p. 132; Heath, 1976, p. 30; Sober and Wilson, 1998, 156ff; Taylor, 1987, p. 144). If free-rider considerations explain why people do not spontaneously (...) keep the streets clean, though they would each prefer unlittered streets, then those considerations will also explain why there is no effective norm against littering the streets. (shrink)

The notion of a spontaneous social order, an order in human affairs which operates without the intervention of any directly ordering mind, has a natural fascination for social and political theorists. This paper provides a taxonomy under which there are two broadly contrasting sorts of spontaneous social order. One is the familiar invisible hand; the other is an arrangement that we describe as the intangible hand. The paper is designed to serve two main purposes. First, to provide a pure account (...) of the invisible hand, with some indication of the varieties of invisible hand (and, indeed, backhand) available. Second, to develop and motivate the unfamiliar conception of the intangible backhand. We believe that a recognition of the availability of this latter sort of spontaneous organising mechanism — and the mechanism is implicitly recognised in many traditions — is of great importance in political theory; it is of particular importance nowadays when the usual focus is entirely on the invisible hand. (shrink)

The relation between morality and rationality (in the sense of rational choice and rational behaviour) is a prominent theme in (the tradition of) moral philosophy. D. Gauthier’s account of this relation is an extraordinarily impressive one. He attempts to demonstrate a general coincidence (at different levels) between rationality and morality. His approach is discussed in what follows, and it will be shown that most of his ‘coincidence claims’ are exaggerated.

Two claims lay the foundation for Beyleveld and Brownsword’s legal theory. The first says that immoral laws cannot be law, the second that rights to freedom and welfare can be proven to be logically necessary given merely the phenomenon of agency. The author argues that both claims are too strong. The first is an overidealization of law, which fails to do justice to its double nature as a real as well as an ideal phenomenon. The second must fail, for a (...) moral “ought” cannot be deduced from a merely instrumental “ought.”. (shrink)

The author's thesis is that human rights can be substantiated on the basis of discourse theory. The argument has two steps. The first step is the justification of the rules of discourse. The second step consists in the foundation of human rights.

Contemporary discussions about practical reason or practical rationality invoke four competing views which can be named as follows by reference to their historical models: Aristotelian, Hobbesian, Kantian and Nietzschean. The subject-matter of this article is a defence of the Kantian conception of practical rationality in the interpretation of discourse theory. At the heart, lies the justification and the application of the rules of discourse. An argument consisting of three parts is pre sented to justify the rules of discourse. The three (...) parts are as follows: a transcen dental-pragmatic argument; an argument which takes account of the maximisation of individual utility and an empirical premise about an interest in correctness. Within the framework of the problem of application, the article outlines a justification of human rights and of the basic institutions of the democratic constitutional state on the basis of discourse theory. (shrink)

An introduction to Thomas Hobbes as a systematic and not merely political philosopher. Best known for his contributions to political philosophy, Thomas Hobbes set out to develop a coherent philosophical system extending from logic and natural philosophy to civil and religious philosophy. In this introduction to Hobbes’s thought, Otfried Höffe begins by providing an overview of the entire scope of his work, making clear its systematic character through analysis of his natural philosophy, his individual and social anthropology, and his political (...) thought. He then offers an innovative examination of religious and ecclesiastical questions, touching not only on the political implications of religion so important to Hobbes, but also on his attempt to reconstruct Christianity in terms of a materialistic philosophy. He also explores Hobbes’s continuous critique of Aristotle and Aristotelian Scholastics, in which Höffe argues that Hobbes and Aristotle have much more in common philosophically than is normally supposed—and certainly more than Hobbes himself acknowledged. Finally, Höffe sketches the influence Hobbes had and continues to have on the development of legal and political philosophy. “A thoroughly successful introduction to the philosophy of Thomas Hobbes ” — Reinhard Brandt, in Süddeutsche Zeitung, in praise of the German edition. (shrink)

Although individuals cannot desist from planning, social processes cannot be commanded and controlled successfully. The shortcomings and disadvantages of holistic planning and the likelihood of plan failure can be explained: Scattered knowledge can be mobilized, innovation and effort can be elicited only where planning does not displace economic freedom and competition. The positive effects of freedom and competition and the negative effects of constraining plans can be demonstrated empirically. But freedom and competition require an institutional framework. There is no need (...) to leave the establishment of this framework only to evolution because evolution does not necessarily lead to efficient solutions. That is why some kinds of planning may have a useful, though modest role to play at the rule-making level. Since planners remain fallible in planning constitutions and institutions, competition and some room for evolution remain desirable at this level, too. (shrink)

The paper draws on a conceptual analysis of justice in discussing the power of rational choice justifications of conceptions of justice. It is argued that the concept of justice can be reduced to two independent moral dimensions. From this conceptual thesis a simple conceptional criterion is derived which any powerful theory of justice must satisfy. An attempt is made to use this fundamental criterion in evaluating a wide variety of rational choice theories of justice. It is shown that there is (...) but one variant of the rational choice approach which in substantiating principles of justice does not violate this criterion. (shrink)

The paradoxes and dilemmas of social choice theory can be taken as an argument against a certain view of democracy: For the identity theory democracy represents a collective actor standing for aggregated individual interests. According to a second model of society, democracy has its normative basis in structural traits of interaction and cooperation. Within the formal theory of politics both the Arrow-Theorem and the Liberal Paradox undermine the identity theory and give us reasons for the second, the normative theory which (...) takes democracy as being constituted by structural rules. (shrink)

Millions of people in the developing world lack access to curative drugs. Pogge identifies the cause of this problem as a lack of redistribution across borders. In contrast, this article shows that institutional shortcomings within developing countries are the main issue. These different explanations are the result of diverging analytic approaches to ethics: a cosmopolitan approach versus an ordonomic approach. This article compares both approaches with regard to how they conceptualize and propose to solve the problem of providing life-saving pharmaceuticals (...) to the poor in developing countries. (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)

This book consists of a dialogue between two interlocutors, Pablo and a student, who discuss a great range of issues in social philosophy and political theory, and in particular, the emergence, working properties and economic effects of institutions. It uses the dialogical form to make philosophy more accessible, but also to show how ideas develop through intellectual interaction. The fact that one of the interlocutors is the "student" in a place in the real world makes the dialogue quasi-fictive in character (...) and enables the active engagement of the reader. After all, we are all philosophers and we develop our own philosophy by exchanging views and arguments. The dialogue form is and should remain the principal form of philosophizing, since ideas, like butterflies, do not merely exist – they develop. This is certainly the case in actual philosophical interaction, and it can be the case in written philosophical exposition. Although the dialogue does not presuppose prior acquaintance with the respective philosophical and social scientific literature under discussion in this book, it makes arguments more accessible, and conveys the feeling that there are no definite solutions to philosophical problems. (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 […].

After a regime-changing war, a state often engages in lustration—condemnation and punishment of dangerous, corrupt, or culpable remnants of the previous system—e.g., de-Nazification or the more recent de-Ba’athification in Iraq. This common practice poses an important moral dilemma for liberals because even thoughtful and nuanced lustration involves condemning groups of people, instead of treating each case individually. It also raises important questions about collective agency, group treatment, and rectifying historical injustices. Liberals often oppose lustration because it denies moral individualism and (...) ignores rule of law, and their only justifications for lustration are consequentialist ones. This article suggests that lustration may not necessarily be a problem for liberals. While group treatment might be justified on grounds of convenience and pragmatism in times of transitional justice, there are also valid moral arguments consistent with moral individualism and due process for wholesale group punishment after a war. This article offers four overlapping moral justifications, in a robust defense of the core concept of lustration that is covered by each argument. (shrink)

This essay presents a skeleton of a potential conceptual framework for human flourishing in a free society. Its aim is to present a diagram that illustrates the ways in which its topics relate to one another and why they do. It argues for a plan of conceptualization rather than for the topics themselves. It emphasizes the interconnections among the components of the schema presented. It sees an essential interconnection between objective concepts, arguing that all of the disciplines of human action (...) can be integrated into a paradigm of human flourishing based on the nature of man and the world. (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)

Germany is considered to be a pioneer of social security systems; nonetheless, globalization and demographic changes have put enormous pressure on them. A solution is not yet in sight as the debate on the future of the German social security systems still lacks consensus. We argue that ideas matter and that the debate can benefit from a deeper reflection on the concept of social security. This objective is pursued along two lines. First, we take a historical perspective and reconstruct the (...) development of Germany's social security systems. Second, we scrutinize from a theoretical perspective how social security is conceptualized in public and theoretical debates. Behind the various positions, we identify four basic ideal types. We then analyze how these ideal types account for the benefits of social security systems and what role they assign to corporations in providing social security. While two ultimately reinforce potential conflicts between different groups in society, the other two ideal types reveal possible benefits for all. The last ideal type actually conceptualizes social security systems as insurance that fosters risky but overall productive investments in human and other forms of capital. Therefore, it can be shown that social security systems are not necessarily threatened by globalization and that incentives exist for corporations to invest in the provision of social security. (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)

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised (...) over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. (shrink)

The article reconstructs, in economic terms, managerial business ethics perceptions in the Japanese consumer market for fast-moving daily consumption products. An economic, three-level model of moral agency was applied that distinguishes unintentional moral agency, passive intentional moral agency and active intentional moral agency. The study took a qualitative approach and utilized as empirical research design an interview procedure. The study found that moral agency of Japanese firms mostly extended up to unintentional and intentional passive moral agency. Certain myopic managerial views (...) were found to affect active moral agency. This leaves room for business ethics program that aim at the development of active moral agency. (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)

States of emergency are declared frequently in all parts of the world. Their declaration routinely implies a suspension of basic constitutional rights. In the last half century, it has become the norm for constitutions to contain an explicit ‘emergency constitution’, i.e., the constitutionally safeguarded rules of operation for a state of emergency. In this paper, I ask whether inclusion of an emergency constitution can be legitimized by drawing on social contract theory. I argue that there are important arguments, both against (...) and in favor of constitutionalized emergency provisions, and that social contract theory—as applied by economists—can be of some help when deciding whether to have, or not to have an emergency constitution. This paper introduces a novel argument for justifying emergency constitutions. It argues that they can serve as a commitment mechanism protecting both citizens and politicians from overreacting to rare but significant threats. (shrink)

What kind of institutions are needed to stabilize and foster democracy? Clearly elections are crucial and much of the institutional and legal surrounding of elections has been subject to research. Two institutional variables have been neglected though, specifically in empirical research: Electoral Management Bodies and International Observer Missions. Can EMBs and EOMs foster free and fair elections? If yes, under what conditions? And what kind of competences are needed for them? We hypothesize that both can become crucial institutions for free (...) and fair elections. Whereas independent central banks or audit courts control special issue areas in order to take certain decision out of the realm of politics, EMBs control the moment of the set-up of government—the election, when conflicts of interest of politicians are at its peak. Although other kinds of independent administrative agencies have been the subject of political science and economic research, EMBs and EOMs have also been neglected here. This article undertakes to outline a conceptual framework for testing various hypotheses on the institutional set-up of EMBs. Hypothesizing that deiure and defacto independence of EMBs foster fair elections, the detailed institutional set-up of EMBs as independent variable is outlined in order to test for the level of democracy as a dependent variable. Furthermore, the importance of EOMs as well as their interaction effect with EMBs is analyzed. Although by now EOMs are sent to almost any country with elections, their impact has not been analyzed in an encompassing way in spite of that the mission have intensified in their work, have become more costly and their verdicts are gaining ever more publicity. (shrink)

The article provides answers to comments in this journal on my recent book, Setting Health-Care Priorities. What Ethical Theories Tell Us. Did I address all of the relevant theories? Yes, I did. Was my argument underdeveloped in any respects? Yes, at least in one as I should perhaps have discussed contractual ethical thinking more carefully. I do so in this response. Moreover, the critical comments raised have helped me to clarify my argument in many ways, for which I thank my (...) critics. (shrink)

ABSTRACT This paper compares two alternative answers to the question ?Who is the addressee of welfare economics?? These answers correspond with different understandings of the status of the normative conclusions of welfare economics and have different implications for how welfare economics should be adapted in the light of the findings of behavioural economics. The conventional welfarist answer is that welfare economics is addressed to a ?social planner?, whose objective is to maximize the overall well-being of society; the planner is imagined (...) as a benevolent despot, receptive to the economist's advice. The alternative contractarian answer is that welfare economics is addressed to individuals who are seeking mutually beneficial agreements; a contractarian recommendation has the form ?It is in the interests of each of you separately that all of you together agree to do x?. Each of these answers should be understood as a literary convention that uses a highly simplified model of politics. I defend the contractarian approach and show that it is less supportive of ?soft paternalism? than is the welfarist approach. (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’.

The aim of the article is to examine the legacy of Menger’s theory of social institutions. We argue that Menger’s insights about the origin of social structures inspired later contributions in three main areas: theory of spontaneous order, theory of money, and theory of law.

"Ethical Leadership" in modern multicultural corporations is first the consideration of different personal and cultural value systems in decision-making processes. Second, it is the assignment of responsibility either to individual or organisational causalities. The task of this study is to set the stage for a distinction between rational entities and the arbitrary preferences of individuals in economic decision making processes.Defining rational aspects of behaviour in economics will lead to the formal structures of organisational systems, which are independent of concrete but (...) varying values. Luhmann''s Theory of systems of communication describes the internal dynamic forces of economic communication processes in terms of formal structures. On the other hand Habermas'' Theory of discourse integrates the previous relationship between individual subjectivity and rational behaviour. Habermas gives an indication of how to separate subjective values and meaning from rational arguments in rational communication processes. The translation of these theoretical structures into practical applications for decision making processes and decision taking acts links the ethical, or value-oriented, context precisely to both individual and organisational areas of responsibility. (shrink)

This paper claims that the intuitive and widespread legitimating power of majority rule (MR) arises from the link between majority rule and the principle of equality of political opportunity. The egalitarian character of MR is established by exploring “puzzles” in democratic theory, such as the insensitivity of democratic voting procedures to unequal intensity of citizens' preferences, and the relationship between the principle of unanimity (sometimes thought better to respect citizens' equality) and MR. Special attention is directed to the relationship between (...) political equality and equality in the outcomes of political decisions: The claim is made that the language of equal political opportunity captures well the idea of equal political influence, in the circumstance of disagreement about what is required to achieve equal treatment through the outcomes of political decisions. (shrink)

During the last half of the twentieth century, legal philosophy (or legal theory or jurisprudence) has grown significantly. It is no longer the domain of a few isolated scholars in law and philosophy. Hundreds of scholars from diverse fields attend international meetings on the subject. In some universities, large lecture courses of five hundred students or more study it. The primary aim of the Law and Philosophy Library is to present some of the best original work on legal philosophy from (...) both the Anglo-American and European traditions. Not only does it help make some of the best work avail able to an international audience, but it also encourages increased awareness of, and interaction between, the two major traditions. The primary focus is on full-length scholarly monographs, although some edited volumes of original papers are also included. The Library editors are assisted by an Editorial Advisory Board of internationally renowed scholars. Legal philosophy should not be considered a narrowly circumscribed field. (shrink)