The Internet and social media have opened niches for political exploitation of human dispositions to hyper-alarmed states that amplify perceived threats relative to their objective probabilities of occurrence. Researchers should aim to observe the dynamic “ramping up” of security threat mechanisms under controlled experimental conditions. Such research necessarily begins from a clear model of standard baseline states, and should involve adding treatments to established experimental protocols developed by experimental economists. We review these protocols, which allow for joint estimation of risk (...) preferences and subjective beliefs about probabilities and their distributions. Results we have obtained on such estimates, from populations in various countries, are gathered for comparison. Most people show moderate risk aversion in non-alarmed states. We also find universal heterogeneity in risk preference structures, with substantial sub-samples weighting probabilities in such a way as to display “probability pessimism”, while others make risky choices in accordance with expected utility theory. (shrink)

In this paper, we explicate an underappreciated distinction between two conceptions of valuing. According to the first conception, which we call the surface-account, valuing something is exclusively a matter of having certain behavioral, cognitive, and emotional dispositions. In contrast, the second conception, which we call the layer-account, posits that valuing is constituted by the presence of certain representational mental states underlying those dispositions. In the first part of the paper, we introduce the distinction in proper detail and show that the (...) accounts have different implications regarding the valuings of agents. In the second part, we situate the accounts within the extant philosophical literature. First, we relate them to the recent debate between so-called dispositionalists and representationalists about the nature of beliefs and point out that this debate can help anticipate some of the main dialectical fault lines to be expected between surface- and layer-theorists. Second, we examine the contemporary meta-ethical debate on conceptualizing valuing, indicate that scholars have largely ignored the distinction introduced here, and outline that this oversight has substantial theoretical costs: as we show, key arguments within the meta-ethical debate require thorough re-evaluation in light of the proposed distinction. The third part of the paper illustrates the theoretical leverage of the distinction for practical research by exploring its implications for behavioral welfare economics. (shrink)

Behavioral welfare economics assigns different roles to preferences than either non-behavioral forms of welfare economics or theories outside of the domain of welfare economics. In particular...

Scholars disagree about the plausibility of preference purification. Some see it as a familiar phenomenon. Others denounce it as conceptually incoherent, postulating that it relies on the psychologically implausible assumption of an inner rational agent. I argue that different notions of rationality can be leveraged to advance the debate: procedural rationality and structural rationality. I explicate how structural rationality, in contrast to procedural rationality, allows us to offer an account of the guiding idea behind preference purification that avoids inner rational (...) agents. Afterward, I address two pressing challenges against preference purification that emerge under the structural rationality account. (shrink)

We propose a methodology for normative evaluation when preferences are context-dependent. We offer a precise definition of context-dependence and formulate a normative criterion of self-determination, according to which one situation is better than another if individuals are aware of more potential contexts of a choice problem. We provide two interpretations of our normative approach: an extension of Sugden’s opportunity criterion and an application of Sen’s positional views in his theory of justice. Our proposition is consistent with Muldoon’s and Gaus’ approaches (...) of public reason in social contract theory, which account for the diversity of perspectives in non-ideal worlds. (shrink)

Heterogeneous beliefs and decision processes generate positive externalities for social and economic systems, analogous to biodiversity in biological systems. Although some aspects of biodiversity (e.g., pests, parasites and bacteria) can lead to ecological and economic problems, biodiversity provides flows of beneficial ecological services and is widely regarded as a valuable natural resource and informational asset, whose value increases as we learn more and science progresses (Wilson in Bioscience 35(11):700–706, 1985). Heterogeneous beliefs and decision processes (and heterogeneous behaviors they generate) similarly (...) provide flows of beneficial economic services. Behavioral diversity should therefore be seen as a natural resource and informational asset likely to improve human wellbeing in surprising ways in the future. Paternalistic policies motivated by the goal of “correcting” allegedly suboptimal beliefs and behavior that diverge from expert recommendations jeopardize behavioral diversity at a substantial cost to social welfare. The risk of encroaching on this beneficial behavioral heterogeneity with policies that aim to induce behavioral and belief monocultures should be included explicitly as costs when evaluating nudges and other paternalistic policies. (shrink)

Cet article envisage deux types de fondements possibles pour une « économie du bien-être néo-samuelsonnienne ». On défend l’idée que l’approche néo-samuelsonnienne en économie mène à un problème de réconciliation entre l’économie positive et l’économie normative, en raison du fait que l’agent économique n’est plus nécessairement l’unité normativement pertinente. Deux formes de réconciliation ayant des implications radicalement différentes pour le statut de l’économie normative sont envisagées. La première consiste à adopter une approche normative en termes de « welfarisme formel » (...) prétendant à une complète neutralité quant à l’identité du sujet et l’unité de mesure de l’analyse normative. L’implication principale est de faire de l’économie du bien-être une branche de l’économie positive. Une seconde approche consiste à une donner une importance axiologique particulière aux personnes, non parce qu’elles sont des prototypes d’agents économiques, mais parce qu’elles sont dotées de la capacité de se représenter, auprès des autres et d’elles-mêmes, comme des entités raisonnables au travers de processus de construction narrative. Cette capacité donne une justification à la vision selon laquelle le bien-être est constituée des préférences d’une personne, dans le sens où ces préférences sont fondées sur des raisons et valeurs définissant l’identité personnelle. (shrink)