In order to vindicate rational-choice theory as a mode of explaining social patterns in general - social patterns beyond the narrow range of economic behaviour - we have to recognize the legitimacy of explaining the resilience of certain patterns of behaviour: that is, explaining, not necessarily why they emerged or have been sustained, but why they are robust and reliable. And once we allow the legitimacy of explaining resilience, then we can see how functionalist theory may also serve us well (...) in social science; we lose the basis - the empty black box argumenton which the rational-choice critique of the theory has mostly been grounded. (shrink)

This article explores the plausibility of some intuitions and counter intuitions about the anti-corruption efforts of MDBs and international organizations leveraging the power of the private sector. Regulation of a sizable percentage of global private sector actors now falls into a new area of international governance with innovative institutions, standards, and programs. We wrestle with the role and value of private sector partnerships and available informal and formal social controls. Crafting proportional informal controls (e.g., monitoring, evaluations, and sanctions) and proper (...) incentives to cooperative games across networks are the lynchpins of successful collective action programs. Ambivalence with informal social controls or effective incentives, we argue, risks far too much deference to private sector interests. (shrink)

Networks and the World Wide Web seem to provide an answer to efficiently creating and disseminating knowledge resources. Knowledge, however, is ambiguous in character, and contains both explicit (information) and tacit dimensions - the latter being difficult to value as well as to transfer. Participant identity, commitment and behaviour within the network also affect the sharing of knowledge. Hence, existing laws and norms (including property rights) which have been established on the basis of discrete transactions and monetary value-oriented exchange may (...) not be adequate to deal with the whole spectrum of knowledge transfer. A model is needed to address transfer across a large heterogeneous network. We introduce the concept of sub-networks where tacit knowledge resides and argue that considering social norms underlying trust and other informal mechanisms provides a more suitable basis for understanding the exchange of tacit knowledge. Norm establishment is complicated by the fact that values differ across cultures; however, the social norms that underpin sub-networks can sustain knowledge transfer within them. The purpose of this conceptual article is to introduce the concept of sub-networks and to identify the sub-network/network relationship as an area in which it is necessary to look beyond property rights and raise the issue of norms. We believe that an analysis of the role of social norms in knowledge sub-networks and their interaction with global networks points to a key element in understanding networks and any emerging theory of network ethics in the twenty-first century. (shrink)

Morally progressive social changes seem to have taken place with the onset of democratic governance, the abolition of slavery, the rise of gender equality, and other developments. This essay attempts to demonstrate that natural and objective moral facts are a plausible cause of some morally progressive social changes. Since this hypothesis is a version of naturalistic moral realism, I call it the Naturalist-Realist Hypothesis. To support the NRH, I argue that objective moral facts are natural facts pertaining to the impartial (...) promotion of well-being within a population of agents facing a social dilemma. I then describe a mechanism to explain how natural and objective moral facts so construed may cause some morally progressive social changes. I suggest that the NRH is a credible hypothesis because it is compatible with empirical findings from research on the evolution of moral cognition and on the sociology of mass political movements. (shrink)

This article considers the dispute between moral economy and rational peasant theories of agrarian societies in application to problems of collective action. The moral-economy theory holds that traditional peasant society is organized cooperatively through shared moral values and communal institutions; while the rational-peasant theory maintains that peasant society shows the mark of rational individual calculation, leading to free-rider problems that undermine successful collective action. This article offers an abstract model of a traditional village and assesses the applicability of recent qualifications (...) of the collective action argument to this model. It will emerge that the social characteristics of the traditional village embody features that facilitate collective action by rational peasants. (shrink)

This article considers the dispute between “moral economy” and “rational peasant” theories of agrarian societies in application to problems of collective action. The moral-economy theory holds that traditional peasant society is organized cooperatively through shared moral values and communal institutions; while the rational-peasant theory maintains that peasant society shows the mark of rational individual calculation, leading to free-rider problems that undermine successful collective action. This article offers an abstract model of a traditional village and assesses the applicability of recent qualifications (...) of the collective action argument to this model. It will emerge that the social characteristics of the traditional village embody features that facilitate collective action by rational peasants. (shrink)

Ilya Somin argues that in light of the public's rational political ignorance we should make government smaller. But his account of the phenomenon of rational ignorance does not justify his policy prescription of smaller government; on the contrary, it implies that we should revamp the current framework of democratic institutions. This is because, since Somin fails to set out a principled basis on which to value democracy even in the face of rational ignorance, he cannot explain why we should want (...) any democratic government, however small it may be. If rational ignorance is as grave a challenge to democracy as he takes it to be, it would seem to demand either radical institutional innovation or, alternatively, an abandonment of certain democratic principles. By not explaining why we should value citizens’ involvement in politics at all, and why we might therefore draw different policy conclusions than he does himself, Somin's book ultimately fails to do full justice to the important questions that it raises. (shrink)

Much of John Rawls' later work is concerned with the appli cation of his philosophical conceptions to the reality of liberal-democratic polities. I suggest that given the modern democratic reality of ethno national pluralism, Rawls' political conception of justice is insufficient to ensure democratic stability. Democratic states manage to contain ethnic pluralism while remaining compatible with liberal principles by promoting a corporate national identity. The key, I argue, lies in the particular member ship criteria devised and implemented by the state. (...) Hence, the promotion of a corporate national identity negates state neutrality, but not necessarily political liberalism. Key Words: Israel • Israeli Arabs • national identity • pluralism • Rawls. (shrink)

Abstract:In providing an ethical guide for managers, the Clarkson Principles offer one part of a possible professional code, namely, that managers have a fiduciary duty—a duty of loyalty of the corporation’s stakeholders. However, the Clarkson Principles contain little advise for managers when they act politically to fashion the regulatory framework in which stakeholders negotiate. When managers participate in these arenas, I argue that they ought to assume a second fiduciary duty—a duty of loyalty to fair bargaining. Where the first duty (...) of loyalty pertains to the firm’s “constituents,” the second refers to the firm’s “constitution”—to the rules by which the firm’s stakeholders bargain and to the background conditions that distribute advantages. Together, these two fiduciary duties establish the large good—development as freedom—from which a managerial profession can mature. (shrink)

Stakeholder theorists distinguish between normative stakeholders, those who gain moral standing by making contributions to the firm, and derivative stakeholders, those who can constrain the corporate association even though they make no contribution. The board of directors has the legal authority to distinguish among these stakeholder groups and to distribute rights and obligations among these stakeholder groups. To be sure, this stakeholder formulation appropriately seizes on the firm’s voluntary, associative character. Yet, the firm’s constituents contribute assets and incur risks to (...) participate in market, economic activities. And, as such, the firm’s “stakeholders” must share an imperfect language to assist in making two key economic decisions: (1) who are the legitimate and who are the derivative stakeholders; and (2) who should sit on the board? Still, stakeholder theorists have good reason to be skeptical of neoclassical economics. Its assumptions that all act opportunistically and that all can calculate rationally and fully hardly correspond to studies on the managerial experience of corporate coordination. However, advances in behavioral law and economics now provide a cogent economic logic that readily fits into a stakeholder mode. In brief, we argue that (1) the firm’s economic purpose designates legitimacy to core stakeholders, to those who add value, assume unique risk, and can incur harm; (2) the board serves as the principal who coordinates these core stakeholders to sustain competitive advantage and new wealth creation; and (3) state incorporation law, Delaware in particular, reinforces the board’s function. These, in turn, supply selection criteria for board membership. We aim to synchronize concepts from behavioral law and economics with stakeholder theory. (shrink)

The study of intrapersonal economic relations, or economics , is still at the programmatic stage. There is no generally accepted paradigm, or even as well-defined set of problems that constitute it as a subdiscipline within economics. Some questions are, however, emerging as foci of interest for a small but increasing number of writers, not just in economics, but also in psychology and philosophy. The writings of Thomas Schelling on self-management, of George Ainslie on self-control, and of Derik Parfit on personal (...) identity testify to this convergence. (shrink)

There has been a persistent tendency to identify what is called “the freerider problem” in the production of collective goods with the prisoner's dilemma. However, in this article I want to challenge that identification by presenting an analysis of what are in fact a variety of collective action problems in the production of collective goods. My strategy is not to consult any intuitions about what the free-rider problem is; rather I will be looking at the problematic game-theoretic structures of various (...) situations associated with the production of different types of collective goods, thereby showing what sorts of difficulties a community concerned with their voluntary production would face. I call all of these dilemmas free-rider problems because in all of them certain individuals find it rational to take advantage of others' willingness to contribute to the good in a way that threatens its production. Some readers may feel that the term ‘free-rider problem’ is so identified with the prisoner's dilemma that my extension of the term in this way “jars”; if so, I invite them to coin another word for the larger phenomenon. My aim is not to engage in linguistic analysis but to attempt at least a partial analysis of the complicated structure of collective good production. (shrink)

We argue that indeterminate probabilities are not only rationally permissible for a Bayesian agent, but they may even be rationally required . Our first argument begins by assuming a version of interpretivism: your mental state is the set of probability and utility functions that rationalize your behavioral dispositions as well as possible. This set may consist of multiple probability functions. Then according to interpretivism, this makes it the case that your credal state is indeterminate. Our second argument begins with our (...) describing a world that plausibly has indeterminate chances. Rationality requires a certain alignment of your credences with corresponding hypotheses about the chances. Thus, if you hypothesize the chances to be indeterminate, your will inherit their indeterminacy in your corresponding credences. Our third argument is motivated by a dilemma. Epistemic rationality requires you to stay open-minded about contingent matters about which your evidence has not definitively legislated. Practical rationality requires you to be able to act decisively at least sometimes. These requirements can conflict with each other-for thanks to your open-mindedness, some of your options may have undefined expected utility, and if you are choosing among them, decision theory has no advice to give you. Such an option is playing Nover and Hájek’s Pasadena Game , and indeed any option for which there is a positive probability of playing the Pasadena Game. You can serve both masters, epistemic rationality and practical rationality, with an indeterminate credence to the prospect of playing the Pasadena game. You serve epistemic rationality by making your upper probability positive-it ensures that you are open-minded. You serve practical rationality by making your lower probability 0-it provides guidance to your decision-making. No sharp credence could do both. (shrink)

Bayesians have a seemingly attractive account of rational credal states in terms of coherence. An agent's set of credences are synchronically coherent just in case they conform to the probability calculus. Some Bayesians impose a further putative coherence constraint called regularity: roughly, if X is possible, then it is assigned positive probability. I look at two versions of regularity – logical and metaphysical – and I canvass various defences of it as a rationality norm. Combining regularity with synchronic coherence, we (...) have a set of constraints known as strict coherence.I argue that strict coherence is untenable. In particular, I attack regularity as a rationality norm. First, I rebut each of the various defences of regularity. Then I argue directly against regularity: it conflicts with the Bayesian decision‐theoretic treatment of rational action. Thus, seemingly plausible theoretical and pragmatic norms turn out to be inconsistent.[Barbossa is about to kill Will,but Jack Sparrow shows up:]Barbossa: It's not possible!Jack: Not probable.To be uncertain is to be uncomfortable,but to be certain is to be ridiculous. (shrink)

The integral age demands a new economic vision. This has to emphasize exchange as a processes not the exchange of things. It must address humanity's unique compulsion to learn using collaborative learning networks. These are what energize the self-organizing global change now accelerating the emergence of new global economic institutions and processes. This new vision requires political economy (i.e., economics integrated with its sociopolitical context).

Contractualism conceives of firm-stakeholder relations as cooperative schemes for mutual benefit. In essence, contractualism holds that these schemes, as well as the normative principles that guide and constrain them, are ultimately ratified by the consent and endorsement of those subject to them. This paper explores the empirical validity of a contractualist perspective on firm-stakeholder relations. It first develops a typology of firm-stakeholder contracting problems. It subsequently confronts this typology with empirical data collected in an interview study of concrete stakeholder management (...) practices, involving in-depth research interviews with forty-four managers working in the Dutch financial services industry. The findings of this theory-building study suggest that there are limits to the applicability of the contract model in the context of stakeholder management, and that disregarding either the model or its limitations may lead to highly ineffective firm-stakeholder relations. (shrink)

Contractualism is one of the most promising ‘centers of gravity’ in business ethics. In this guest editorial we provide a concise roadmap to the field, sketching contractualism’s historic and disciplinary antecedents, the basic argumentative structure of the contract model, and its boundary conditions. We also sketch two main dimensions along which contributions to the contractualist tradition can be positioned. The first dimension entails positive versus normative theorizing – does a given contribution analyze the world as it is or how it (...) ought to be? The second dimension involves four different levels of analysis that are commonly employed in contractualist business ethics: the nano, micro, meso, and macro levels. We then proceed to position the articles comprising this special issue along these two dimensions. (shrink)

Hayek's social theory presupposes that rules are unintended consequences of individual actions. This essay explicates one kind of Hayekian explanation of that claim. After noting the kinds of rules that Hayek believes are subject to such a theory, the essay distinguishes three functional explanations advocated by Hayek. He combines one of these functional explanations with an invisible hand explanation. A schema suitable for constructing invisible hand-functional evolutionary theories is employed to outline this combination.

The sociology of violence still struggles with two critical questions: What motivates people to act violently on behalf of groups and how do they come to identify with the groups for which they act? Methodologically the article addresses these puzzling problems in favor of a relational sociology that argues against both micro- and macro-reductionist accounts, while theoretically it proposes a twofold reorientation: first, it makes a plea for the so called cognitive turn in social theory; second, it proposes following praxeological (...) accounts of social action that focus on the dynamic interpenetration of cognition and socio-cultural practices. The argument is that symbolic boundaries constitute the “missing link” that allows for overcoming the micro-macro gap in violence research: Symbolic boundaries can cause people's participation in collective violence by providing the essential relational resources for violent action and by triggering the cognitive/affective mechanisms necessary for social actors to become drawn into mobilization processes that can cause their engaging in coordinated attacks on sites across the boundary. The article offers a new theoretical argument by drawing on knowledge from violence research, social action theory and cognitive science allowing for a non-reductionist theory of action that explains how and why people engage in collective violence. (shrink)

There are three centrally important ways in which norms have been elaborated and explained: in terms of religious or natural law strictures on behavior, in terms of constraints imposed by rationality, and, recently, in terms of agents' behavior in well‐defined games. The principal difficulty of a gaming account of norms is to show how the account explains motivations of individuals to follow the norms. This issue is examined in the context of small‐number norms and large‐number norms. †To contact the author, (...) please write to: Department of Politics, New York University, 19 W. 4th Street, New York, NY 10012; e‐mail: [email protected]. (shrink)

This article provides a survey of various topics in which questions about taxation feature alongside questions about justice. It seeks to argue mainly that taxation is a rather fragmentary domain of inquiry about which it is hard to envisage the development of views about what justice requires with respect to tax policy in general. Guided by this idea, the article attempts to highlight some aspects of taxation whose connection with justice has been under-explored by philosophers, as well as to acquaint (...) the reader with a sense of the more thoroughly researched areas. (shrink)

Informal justice often is castigated as rough justice, procedurally unauthorized and substantively unrationalized and prone to error. Yet those same features are present, to some extent, in formal justice as well: they do not form the basis for any sharp categorical contrast between formal and informal justice. Furthermore, some roughness in justice may be no bad thing. Certain of those elements of roughness in formal justice are inextricably bound up with other features of formal justice that are rightly deemed morally (...) important. And rough informal justice can sometimes be used to change formal justice in more just directions. (shrink)

Here I distinguish the four logically possible ways in which nuclear weapons might be used: in an all?out nuclear strike, either first or second; or in a limited strike, either first or second. I go on to show that neither of the two most basic moral perspectives, consequentialistic or deontological, would permit nuclear weapons to be used in any of those four ways; nor would they permit an empty threat to use them. Nuclear weapons are thus shown to be morally (...) useless. Given the moral opportunity costs of maintaining this morally useless arsenal, nuclear weapons should therefore be abandoned, universally if possible and unilaterally if need be. (shrink)

(1986). Reason and Nuclear Deterrence. Canadian Journal of Philosophy: Vol. 16, Supplementary Volume 12: Nuclear Weapons, Deterrence and Disarmament, pp. 129-159.

Recent decades have seen a resurgence of contractarian thinking about the nature and origins of the state. Scholars in this tradition ask what constraints rational, self-interested actors might deliberately impose upon themselves. In response, Hobbes, Rousseau, Locke, and other early contractarians answered that laws of property were an attractive alternative to “the war of all against all.” More recently, James Buchanan, Russell Hardin, Mancur Olson, Gordon Tullock, and others have used contractarian principles to justify laws that solve a variety of (...) Prisoner's Dilemmas and other collective-action problems. And in the distributional realm, John Rawls and others have applied contractarian analysis to investigate how material wealth ought to be allocated among people. (shrink)

In her recent book _A Duty to Resist_ (2018), Candice Delmas contends that both beneficiaries and victims of injustices have a duty to resist unjust laws and to try to change them, and proposes several ways of grounding this duty. One of these proposed groundings appeals to considerations of fairness. Delmas holds that anyone who refuses to participate in resisting some injustice, including victims of that injustice, can be accused of free-riding and thus of unfair conduct that violates the duty (...) of fair play, which means that they have a fairness-based duty to resist. In this paper, I critique this attempt to ascribe a duty to resist grounded in considerations of fairness specifically to victims of injustice. Against Delmas, I argue that victims of injustice do not have this fairness-based duty to resist because, unlike the beneficiaries of an injustice, they cannot be considered free-riders when they do not participate in resistance to the injustice. I then discuss additional problematic implications of Delmas’s view, focusing on the issue of victim-blaming, and show how these problems can be avoided. In this way, I hope to contribute to the urgent project of determining who has a duty to resist injustice. (shrink)

Long before Prospect Theory and Loss Aversion Theory, Thomas Hobbes’s account of self-interest and risk assessment formed the basis of a powerful argument for the benefits of negative appeals. Dismissing the pursuit of highest and final goods as inherently incapable of yielding collective action, Hobbes proposed a method focusing instead on the highest evil, something that individuals with different goals could agree on as a barrier to their respective pursuits. In his own theory, that evil was violent death in the (...) dystopian setting of his notorious state of nature. The staying power of Hobbes’s memorable image itself validates Hobbes’s rationale and offers important reminders regarding the limits of utopian appeals to collective action. (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)

In A Darwinian left Peter Singer aims to reconcile Darwinian theory with left wing politics, using evolutionary game theory and in particular a model proposed by Robert Axelrod, which shows that cooperation can be an evolutionarily successful strategy. In this paper I will show that whilst Axelrod’s model can give support to a kind of left wing politics, it is not the kind that Singer himself envisages. In fact, it is shown that there are insurmountable problems for the idea of (...) increasing Axelrodian cooperation within a welfare state. My surprising conclusion will be that a Darwinian left worthy of the name would be anarchistic. Ó 2005 Elsevier Ltd. All rights reserved. (shrink)

Chamberlin insists on its validity in contributing to our thinking about the place of ethics in international affairs and in clarifying both the dangers and potential areas of cooperation inherent in many international relationships.

The backward induction argument purports to show that rational and suitably informed players will defect throughout a finite sequence of prisoner's dilemmas. It is supposed to be a useful argument for predicting how rational players will behave in a variety of interesting decision situations. Here, I lay out a set of assumptions defining a class of finite sequences of prisoner's dilemmas. Given these assumptions, I suggest how it might appear that backward induction succeeds and why it is actually fallacious. Then, (...) I go on to consider the consequences of adopting a stronger set of assumptions. Focusing my attention on stronger sets that, like the original, obey the informedness condition, I show that any supplementation of the original set that preserves informedness does so at the expense of forcing rational participants in prisoner's dilemma situations to have unexpected beliefs, ones that threaten the usefulness of backward induction. (shrink)

. References. Critical Review: Vol. 18, Democratic Competence, pp. 331-360.

Using an ethnographic case study, this research examines three competing hypotheses of how a community acts. The study attempts to reconstruct the events that led various actors in the community to seek the formation of an industrial base as an alternative economic source for the community. The roles of unique events, specific persons and particular strategies in the formation of the industrial base are examined. It was found that unique events play a very important role in the community's concern over (...) economic alternatives to agriculture and their success in securing such alternatives. These events were also important to key individuals within the community, placing them in positions to act in the industrial base formation. Strategies of community action used in the industrial base formation and since that time were found to be consistent with the “centralized weak-tie network” hypothesis of action or ganization. This type of community action organization seems to be very effective at the community level but tends to be very exclusionary of the community population as a whole. (shrink)

Odor baited methods of controlling tsetse have received considerable attention as ecologically friendly ways for African farmers to reduce their levels of livestock trypanosomosis. Over the last decade, a number of tsetse control projects have been set up in East Africa using these methods. Although much has been written, few hard data are available regarding their ongoing success, problems, and sustainability. To evaluate the situation on the ground, the authors conducted a series of site visits to a number of such (...) tsetse control projects in Kenya. A comparison of these projects with others across the region identified the possible constraints to a wider uptake of these methods. Poor information, coupled with inappropriate research and development policies, were found to be the key constraints. These could be overcome with a farmer-based approach to control, with a better application of existing techniques, and with a greater role for veterinarians. Tsetse control needs to become demand rather than supply driven, if it is to bean important component of livestock disease control in Africa. (shrink)

We are all aware that many people can easily combine general moral understandings that make unprovoked violence inexcusable, with tolerance or even support for that same behavior when it is carried...

Cooperation is rife in the microbial world, yet our best current theories of the evolution of cooperation were developed with multicellular animals in mind. Hamilton’s theory of inclusive fitness is an important case in point: applying the theory in a microbial setting is far from straightforward, as social evolution in microbes has a number of distinctive features that the theory was never intended to capture. In this article, I focus on the conceptual challenges posed by the project of extending Hamilton’s (...) theory to accommodate the effects of gene mobility. I begin by outlining the basics of the theory of inclusive fitness, emphasizing the role that the concept of relatedness is intended to play. I then provide a brief history of this concept, showing how, over the past fifty years, it has departed from the intuitive notion of genealogical kinship to encompass a range of generalized measures of genetic similarity. I proceed to argue that gene mobility forces a further revision of the concept. The reason in short is that, when the genes implicated in producing social behaviour are mobile, we cannot talk of an organism’s genotype simpliciter; we can talk only of an organism’s genotype at a particular stage in its life cycle. We must therefore ask: with respect to which stage(s) in the life cycle should relatedness be evaluated? For instance: is it genetic similarity at the time of social interaction that matters to the evolution of social behaviour, or is it genetic similarity at the time of reproduction? I argue that, strictly speaking, it is neither of these: what really matters to the evolution of social behaviour is diachronic genetic similarity between the producers of fitness benefits at the time they produce them and the recipients of those benefits at the end of their life-cycle. I close by discussing the implications of this result. The main payoff is that it makes room for a possible new mechanism for the evolution of altruism in microbes that does not require correlated interaction among bearers of the genes for altruism. The importance of this mechanism in nature remains an open empirical question. (shrink)

Inclusive fitness theory was not originally designed to explain the major transitions in evolution, but there is a growing consensus that it has the resources to do so. My aim in this paper is to highlight, in a constructive spirit, the puzzles and challenges that remain. I first consider the distinctive aspects of the cooperative interactions we see within the most complex social groups in nature: multicellular organisms and eusocial insect colonies. I then focus on one aspect in particular: the (...) extreme redundancy these societies exhibit. I argue that extreme redundancy poses a distinctive explanatory puzzle for inclusive fitness theory, and I offer a potential solution which casts coercion as the key enabler. I suggest that the general moral to draw from the case is one of guarded optimism: while inclusive fitness is a powerful tool for understanding evolutionary transitions, it must be integrated within a broader framework that recognizes the distinctive problems such transitions present and the distinctive mechanisms by which these problems may be overcome. (shrink)

The gulf between multinational enterprises’ focus on high income countries and the reality of 80% of the world living in developing, bottom of pyramid (Hahn, J Bus Ethics 84:313–324, 2009 ) economies could magnify the anti-globalisation movement and political backlashes in the twenty-first century. The global financial crisis of 2008 and 2009 has increased such social tensions throughout the world and creates greater challenges for, responsible leadership. In this conceptual article, the authors analyse the value and identity of local managers, (...) and the liability of foreignness caused by over-reliance on expatriate managers and under-reliance on local managers in bottom of pyramid countries (Hahn, 2009 ). It is argued that multinational enterprises need to assess local managers’ knowledge and contributions as having not only operational and market value, but also institutional value, such as access to local knowledge and local social capital; such a holistic approach will ensure fairer, equal treatment of all managers in the multinational enterprise. Responsible leadership in the twenty-first century requires a greater appreciation of local managers’ institutional value and the overcoming of any psychological distance towards local managers of bottom of pyramid countries. (shrink)

We develop a theory of joint intention in contexts in which participants have mixed motives that can manifest in all-things-considered reasons to deviate from contributing to the desired project, e.g., contexts with collective action problems. Our theory is based on strategic equilibrium-based reasoning, which links the characterization of joint intention in terms of individual intentions with conditions on strategy profiles of the underlying strategic games. We use elements of equilibrium reasoning to construct a counterfactual account of joint intention in the (...) mixed-motive contexts, which extends the reach of the notion of joint intention considerably beyond that of previous formulations. (shrink)

Social identity poses one of the most important challenges to rational choice theory, but rational choice theorists do not hold a common position regarding identity. On one hand, externalist rational choice ignores the concept of identity or reduces it to revealed preferences. On the other hand, internalist rational choice considers identity as a key concept in explaining social action because it permits expressive motivations to be included in the models. However, internalist theorists tend to reduce identity to desire—the desire of (...) a person to express his or her social being. From an internalist point of view, that is, from a viewpoint in which not only desires but also beliefs play a key role in social explanations as mental entities, this article rejects externalist reductionism and proposes a redefinition of social identity as a net of beliefs about oneself, beliefs that are indexical, robust, and socially shaped. (shrink)

The economic distinction between technological and market information offers a useful guide to the relationship between information and policy. The two types create different problems for markets and require different emphases in public policy, focusing on either the production or the distribution of information. The interaction of the two types creates familiar policy problems such as underinvestment in information, adverse selection and moral hazard. Indicators and other means of dealing with such problems constitute policies and demonstrate not only the importance (...) of information for policy but the necessity of policy for information. (shrink)