The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

Social ontology is the study of the nature and properties of the social world. It is concerned with analyzing the various entities in the world that arise from social interaction. -/- A prominent topic in social ontology is the analysis of social groups. Do social groups exist at all? If so, what sorts of entities are they, and how are they created? Is a social group distinct from the collection of people who are its members, and if so, how is (...) it different? What sorts of properties do social groups have? Can they have beliefs or intentions? Can they perform actions? And if so, what does it take for a group to believe, intend, or act? -/- Other entities investigated in social ontology include money, corporations, institutions, property, social classes, races, genders, artifacts, artworks, language, and law. It is difficult to delineate a precise scope for the field (see section 2.1). In general, though, the entities explored in social ontology largely overlap with those that social scientists work on. A good deal of the work in social ontology takes place within the social sciences (see sections 5.1–5.8). -/- Social ontology also addresses more basic questions about the nature of the social world. One set of questions pertains to the constituents, or building blocks, of social things in general. For instance, some theories argue that social entities are built out of the psychological states of individual people, while others argue that they are built out of actions, and yet others that they are built out of practices. Still other theories deny that a distinction can even be made between the social and the non-social. -/- A different set of questions pertains to how social categories are constructed or set up. Are social categories and kinds produced by our attitudes? By our language? Are they produced by causal patterns? And is there just one way social categories are set up, or are there many varieties of social construction? -/- The term ‘social ontology’ has only come into wide currency in recent years, but the nature of the social has been a topic of inquiry since ancient Greece. As a whole, the field can be understood as a branch of metaphysics, the general inquiry into the nature of entities. (shrink)

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.

This paper is part of the general debate about the need to rethink economics as a human discipline using a heuristic to describe its object, about the need to explicitly reject the positivistic approach in neoclassical economics, and about the urgency to adopt a different methodology, grounded on a realistic set of initial assumptions able to cope with the complexity of the decision making process. The aim of this paper is to show the use of Occam's razor in the economic (...) debate around realism in economic modelling. Occam's razor can be intended as a principle of logic that emphasises simplicity, or as a heuristic tool that emphasises parsimony. Neoclassical economists, such as Samuelson, have explicitly used Occam's razor as a logical principle to highlight the strict logic and simplicity of neoclassical economics; neoclassical models, however, are based on unrealistic assumptions. Some approaches of heterodox economics, au contraire, have used Occam's razor as a powerful heuristic tool to emphasise parsimony, building up models grounded on realistic initial assumptions and capable of embedding complexity into the general explanation of economic behaviour, as in Simon's bounded rationality (1955; 1957) and Hayek's notion of human rationality (1948; 1952; 1974) and cultural and social evolution (1967; 1978). (shrink)

The goal of the article is to substantiate that despite the criticism the paradigm in economics will not change because of the axiomatic assumptions of value-free economics. How these assumptions work is demonstrated on the example of Gary Becker’s economic approach which is analyzed from the perspective of scientific research programme. The author indicates hard core of economic approach and the protective belt which makes hard core immune from any criticism. This immunity leads economists to believe that they are objective (...) scientists and, consequently, it results in epistemological hubris. Due to its tautological nature, economic approach is considered to be a degenerative programme. This conclusion is extended on value-free economics. In spite of these problems, many economists still believe in positive economics and they dismiss normative approaches. It has a negative influence on people. The conclusion of the article is that thanks to axiomatic assumptions economists do not have objective and ironclad methodology and they should accept normative values in their research. (shrink)

This paper analyses the cognitive image schemas structuring the ontological commitments of dominant conceptions of ethics and economics to show that the content of economics is implicated in conceptions of ethics, and that these conceptions cannot be separated from questions of research and professional ethics. This analysis of the metaphoric structuring of the ontological commitments of ethics and economics is based on an extension of Kuhn's construct sense of 'paradigm' as concrete analogy; and on techniques of metaphoric analysis developed in (...) cognitive linguistics. Analysis of the iconic and schematic representations of the concrete analogies and idealised cognitive models structuring economic and ethical theories expose both shared and conflicting ontological commitments. Read the Open Peer Discussion on this paper ». (shrink)

The paper aims to assess whether the ideas developed by Don Ross in his recent book Economic theory and cognitive science: microexplanation, which relates neoclassical economics to recent developments in cognitive science, might revolutionize the methodology of economics. Since Ross challenges a conception of economics associated with what is pejoratively called 'Folk psychology', the paper discusses ideas of the philosopher Daniel Dennett on which this challenge is largely based. This discussion could not avoid bearing on questions such as the nature (...) of consciousness, the interpretation of ontological realism, the relations between agency and selfhood, and the nature and scope of economics. The paper attempts to rehabilitate the two pieces of the traditional conception of economics that were most radically contested by Ross, namely methodological individualism and the foundational role of rationality in economics. A relatively nuanced judgment on Ross's bold enterprise is proposed in conclusion. (shrink)

This article aims at showing the need for a sound ethical and anthropological foundation of economics and business, and argues the importance of a correct understanding of human values and human nature for the sake of economics and of businesses themselves. It is suggested that the ethical-anthropological side of economics and business can be grasped by taking Aristotle’s virtue ethics and Amartya Sen’s capability approach (CA) as major reference points. We hold that an “Aristotelian economics of virtues”, connected with the (...) CA’s notion of human richness, can promote the shift to the concept of personhood, and can lead to a more “humanized” business, by fostering human flourishing, the enhancement of human capabilities, and the pursuit of a more humane development for each and every person. (shrink)

A central point of debate over environmental policies concerns how future costs and benefits should be assessed. The most commonly used method for assessing the value of future costs and benefits is economic discounting. One often-cited justification for discounting is uncertainty. More specifically, it is risk aversion coupled with the expectation that future prospects are more risky. In this paper I argue that there are at least two reasons for disputing the use of risk aversion as a justification for discounting (...) when dealing with longterm decisions, one technical and one ethical. Firstly, I argue that technically, it implies an inconsistency between theory and practice. And secondly, I argue that discounting for uncertainty relies on a form of individualism which, while reasonable in standard microeconomic theory where an agent chooses how to spread her own consumption over her own lifetime, is inappropriate in the context of intergenerational social decisions. (shrink)

The central fact in the delineation of radical behaviorism is its conceptual avoidance of propositional content. This eschewal of the intentional stance sets it apart not only from cognitivism but from other non-behaviorisms. Indeed, the defining characteristic of radical behaviorism is not that it avoids mediating processes per se but that it sets out to account for behavior without recourse to propositional attitudes. Based, rather, on the contextual stance, it provides definitions of contingency-shaped, rule-governed verbal and private behaviors which are (...) non-intentional. However, while the account provided by radical behaviorism fulfills the pragmatic criteria of prediction and control of its subject matter, it has problems of explanation that stem from the failure of radical behaviorist interpretation to address the personal level of analysis, to provide for the continuity of behavior, and to show how its accounts can be delimited in the face of causal equifinality. This leaves gaps in its explanation that radical behaviorists choose either to ignore or to fill with the very intentional locutions that they formally abhor but which I argue are essential. As a result, many psychologists who style themselves radical behaviorists have already moved beyond radical behaviorism as a philosophy of science. They have done so primarily as a result of adopting the language of intentional psychology in order to explain behavior; where they have not done this, they have resorted to the unscientific assumption that somewhere there is a learning history that explains their data. While it is indeed the case that a learning history precedes all operant behavior, the explanatory gap that is revealed by the search for this unobtainable information reveals the inescapability of intentionality. Hence, psychologists, including radical behaviorists, are right to employ it. The challenge is to understand why this is so and to celebrate rather than denigrate the resulting extension of behavioral science. In this response, I first raise and seek to answer two questions: what is radical behaviorism, and what is intentional explanation? I go on to discuss the incompleteness of radical behaviorism. There follows a summary of the argument with respect to intentional behaviorism and super-personal cognitive psychology. And, finally, I bring the discussion back to Daniel Dennett, the philosopher who initiated so much of it. (shrink)

Economist-philosopher Amartya Sen's writings on social and political issues have attracted wide audiences. Section 2 introduces his contributions on: how people reason as agents within society; social determinants of people's (lack of) access to goods and of the effective freedoms and agency they enjoy or lack; and associated advocacy of self-specification of identity and high expectations for ‘voice’ and reasoning democracy. Section 3 considers his relation to social theory, his tools for theorizing action in society, and his limited degree of (...) attention to work by sociologists and to capitalism and power structures. Section 4 characterizes a style marked by conceptual refinement, emphases on complexity and individuality, including personal individuality, and reformist optimism. Section 5 shows the features from Sections 3 and 4 at work in his conception of personhood that advocates freedom to make a reasoned composition of personal identity. Similarly, Section 6 addresses his conception of public reasoning and neglect of the sociology of democracy. It contrasts the ideal of a reasoning polity with features in many countries. Sen's programmes for critical autonomy in personhood and for reasoned politics play, nevertheless, a normic role, while his analytical formats help investigation of obstacles to more widespread agency, voice, and democratic participation. (shrink)

The aim of this study is to contribute to a conceptualization of organizational politics that underscores the possibility of developing positive political behavior at the workplace. In this respect, we seek to provide a context of re-evaluating the normative foundations of organizational politics. Normative issues are critically discussed in the context of mainstream ethical theories that illuminate the interaction of ethics and political behavior. More specifically, it is argued that a deontological framework is of particular importance for the proper management (...) of negative political behavior, whereas a virtue-ethics context can be employed so as to foster positive political behavior at the workplace. Finally, the implications of this approach for organizational life and HRM processes and practices are taken into consideration. (shrink)

This paper explores the implications of the recent revival of Hegel studies for the philosophy of economics. We argue that Hegel’s theory of Objective Spirit anticipates many elements of modern approaches in cognitive sciences and of the philosophy of mind, which adopt an externalist framework. In particular, Hegel pre-empts the theories of social and distributed cognition. The pivotal elements of Hegelian social ontology are the continuity thesis, the performativity thesis, and the recognition thesis, which, when taken together, imply that all (...) mental processes are essentially dependent on externalizations, with the underlying pattern of actions being performative. In turn, performative action is impossible without mutual recognition in an intersubjective domain. We demonstrate the implications for economic theory in sketching an externalist approach to institutions and preferences. (shrink)

This paper is motivated by Davis’ [14] theory of the individual in economics. Davis’ analysis is applied to health economics, where the individual is conceived as a utility maximiser, although capable of regarding others’ welfare through interdependent utility functions. Nonetheless, this provides a restrictive and flawed account, engendering a narrow and abstract conception of care grounded in Paretian value and Cartesian analytical frames. Instead, a richer account of the socially embedded individual is advocated, which employs collective intentionality analysis. This provides (...) a sound foundation for research into an approach to health policy that promotes health as a basic human right. (shrink)

The economic crisis has exposed shortcomings in standard economic theory and provided an impetus for new economic thinking. But the theoretical debate in the wake of the crisis has been unduly constrained by the terms of the mainstream approach to economic theory. Like any approach, it is characterised by a way of framing reality, giving meaning to terms and setting criteria for good argument. It also determines how any economic theory is understood, whether from the history of economic thought or (...) from the contemporary literature. But there are other approaches to economics which would open up the field to a much wider range of possibilities for new economic thinking. Addressing the challenge that any reader bases her understanding on her own approach, the purpose of this paper is to attempt to explain what it means to consider different approaches and why it matters for policy. This is done by discussing two features of the financial crisis which pose particular problems for economic theory. These are the role of changing market sentiment in driving asset prices on the one hand and the breakdown of trust relationships in banking on the other (the moral hazard issue). We will see how these are addressed by mainstream theory and by alternative approaches. First, market sentiment is discussed within the mainstream rational-optimising framework, where risk is quantifiable, and compared with the Keynesian approach based on the general uncertainty of knowledge, where reason, evidence and sentiment are integrated. The moral hazard issue is then discussed in its mainstream form in terms of rational opportunism and in its institutionalist form in terms of the foundation of social relations (including relations between institutions) in trust. It is shown that different ways of approaching theorising in each case imply different policy measures. It is argued further that an exclusively deductive mathematical approach to analysis of market sentiment and trust is unduly limiting and that a more pluralist approach would more fully address the issues. (shrink)

In this interview, professor Davis discusses the evolution of his career and research interests as a philosopher-economist and gives his perspective on a number of important issues in the field. He argues that historians and methodologists of economics should be engaged in the practice of economics, and that historians should be more open to philosophical analysis of the content of economic ideas. He suggests that the history of recent economics is a particularly fruitful and important area for research exactly because (...) it is an open-ended story that is very relevant to understanding the underlying concerns and concepts of contemporary economics. He discusses his engagement with heterodox economics schools, and their engagement with a rapidly changing mainstream economics. He argues that the theory of the individual is “the central philosophical issue in economics” and discusses his extensive contributions to the issue. (shrink)

Economists study "The Economy," or so one might suppose. Yet this overarching entity is strikingly absent from mainstream theory. Since the 1950s, it has generally been described with a few mathematical propositions and not given a description that attends to institutions, power relations, or the emergent properties that form the leading indicators in macroeconomic theory. There is thus a significant divergence between folk economics and scientific economics on this theoretical entity. This article briefly addresses the history of this concept, noting (...) its heyday in the interwar years, and brings to bear some of the analytical apparatus on institutional facts devised by John Searle. Whatever is meant by "The Economy" in folk economics appears to be significantly divergent from what is posited in scientific economics. Key Words: economy • Searle • theoretical entities • macroeconomics • economic indicators • folk economics. (shrink)

In this article, I examine Luhmann’s, Bunge’s and others’ views on emergence, and argue that Luhmann’s epistemological construal of emergence in terms of Totalausschluss (total exclusion) is both ontologically flawed and detrimental to an appropriate understanding of the distinctive features of social emergence. By contrast, Bunge’s rational emergentism, his CESM model, and Wimsatt’s characterization of emergence as nonaggregativity provide a useful framework to investigate emergence. While researchers in the field of social theory and sociology tend to regard Luhmann as the (...) sole representative of systems theory, the latter has been characterized by its diversity, and the writings of such systems theorists as Mario Bunge deserve more (critical) attention from social researchers than they receive at present. Finally, this article suggests that the perennial debate over methodological individualism and holism in social science may make real progress if such ambiguous terms as reduction and reductionism are elucidated before they are employed. (shrink)

Behavioral economics and existentialism both present informative perspectives on human choice. We argue in this article that the dialogue between the two approaches can enrich the current debate about the normative implications of behavioral economics. While behavioral economics suggests that our capacity to choose is constrained by cognitive biases and environmental influences, existentialism emphasizes that we can treat ourselves as free and ‘becoming’ beings in spite of the many constraints we face. Acknowledging these two perspectives in the form of a (...) theoretical synthesis—which we propose to call existentialist behavioral economics—provides us with reasons why we should protect our choices ‘as our own’ and how doing so may be more difficult than we anticipate. It also provides a framework to analyze the threat of identity-shaping social and technological developments, such as preference-altering nudges and artificially intelligent prediction algorithms. (shrink)

The paper gives an overview of primate research and the economic-ethical 'lessons' we can derive from it. In particular, it examines the complex, multi-faceted and partially conflicting nature of (non-) human primates. Our closest living relatives, the chimpanzees and bonobos, apparently walk on two legs: a selfish and a groupish leg. Given evolutionary continuity and gradualism between monkeys, apes and humans, human primates seem to be bipolar apes as well. They, too, tend to display a dual structure: there seems to (...) be a pro-social and a self-interested side to our species and a bipolar tension seems to exist between competition and cooperation respectively between self-interest and the common good. We are apparently at the same time Homines oeconomici and Homines culturali. Our inner ape tries to combine self-interested and common good motives. Based on de Waal's Russian doll model, the essay investigates the evolutionary origins of morality and 'eusociality'. With the help of selected case studies stemming from behavioural sciences/economics, the paper illustrates examples of empathy, altruism, reciprocal fairness, pro-social and other-regarding preferences, inequity aversion and altruistic punishment in (non-)human primates. Beside this selfless and groupish side, the paper also reflects on the self-interest and egoistic nature of (non-)human primates and the behavioural and cognitive differences between monkeys, apes and humans. (shrink)

The concept of self-interest is core to modern understandings of individual desire and need. It is also central in the concept of homo economicus and, in a variety of forms, underpins economic science. The critical discussion of the notion of self-interest in William Hazlitt, An Essay on the Principles of Human Action ([1805] 1969), remains unknown in sociology and economics even though it resolves a number of key problems associated with the concept and makes an original, indeed, unique contribution to (...) action theory. In particular, Hazlitt shows that the basis on which an individual pursues their own interest is identical with their sympathy with the interests of others. Hazlitt shows that a clear distinction between self and other cannot be sustained, and that an individual is as remote from their future self as they are from any other person. Even the `sexual appetite' Hazlitt shows cannot be understood in terms of simple self-interest as it is stimulated and consummated through mental and reciprocal capacities. These and related aspects of Hazlitt's Principles are set out below, and their relevance for an understanding of self-interested action and self-formation is demonstrated. (shrink)

Economics has long been the ‘dismal science’. The crisis in classical political economy at the end of the nineteenth century produced radically differing intellectual responses: Marx’s reconstitution of value theory on the basis of his dialectical method, the marginalists’ development of subjective value theory, and the historical school’s advocacy of inductive and historical reasoning. It is against this background that economics was established as a discrete academic discipline, consciously modelling itself on maths and physics and developing its focus on theorising (...) exchange. This entailed extraordinary reductionism, with humans regarded as rational, self-interested actors, and class, society, history and ‘the social’ being excised from economic analysis. On the basis of this narrowing of its concerns, particularly from the 1980s onwards, economics has sought to expand its sphere of influence through a form of imperialism which seeks to apply mainstream economic approaches to other social sciences and sees economics as ‘the universal grammar of social science’. The implications of this shift are discussed in Ben Fine and Dimitris Milonakis’s two volumes, where they analyse the fate of the social, the political and the historical in economic thought, and assess the future for an inter-disciplinary critique of economic reason. (shrink)

Der libertäre Paternalismus genießt in Politik, Wissenschaft und Öffentlichkeit eine große Popularität, die er insbesondere zwei Merkmalen verdankt: Erstens stützt sich der LP auf verhaltensökonomische Ergebnisse, die zeigen, dass individuelle Entscheidungen oft nicht der neoklassischen Rationalitätskonzeption entsprechen, sodass Individuen durch sogenanntes Nudging zu besseren, ihren wahren Präferenzen entsprechenden Entscheidungen verholfen werden könne. Zweites ist damit der Anspruch verbunden, das Wohlergehen der Individuen, wie sie selbst es verstehen, zu erhöhen. Dieser Beitrag zeigt anhand einer dogmengeschichtlichen Analyse der zentralen, dem LP zugrunde (...) liegenden Begriffe Präferenz, Nutzen, Rationalität und Wohlergehen, dass der LP diesen Anspruch nicht einlösen kann. Eine detaillierte begriffliche Analyse ist deshalb geboten, weil diese Konzepte in der Ökonomik immer wieder für Missverständnisse sorgen. Eine theoriegeschichtlich informierte Untersuchung wiederum ist notwendig, da diese Konfusion insbesondere auf der Tatsache beruht, dass der Gehalt dieser Begriffe sich im Laufe der Zeit gravierend verändert hat und sich die verschiedenen Bedeutungen heute z. T. wechselseitig überlagern. (shrink)

Marshall's asset equilibrium model provides a way of explaining the identity of entrepreneurs. Keynes adopted this model but transformed it when he emphasized the short-period and volatile character of long-term expectations. This entails a view of entrepreneur identity in which radical uncertainty plays a central role. This in turn deepens the post Keynesian view of uncertainty as ontological in that entrepreneurs' survival plays into their behavior. This paper explores this role-based view of individual identity and uses the analysis to comment (...) on Keynes’s ideas for the socialization of investment and euthanasia of the rentier in the last chapter of The general theory. (shrink)