In recent decades education is increasingly perceived as an instrument for generating economic growth and enhancing production. Unexpectedly, however, many prominent economists, throughout history, have rejected this view of education. This article examines the grounds on which Tibor Scitovsky, who was one of the leading economists of twentieth century America, objected to the spread of production oriented education. The article begins by an historical overview of the relationship between economic and educational theory. It then explains why Scitovsky held the economic (...) growth achieved in the 20th necessitates an educational reform and presents the outline of this proposed educational reform. It is argued that by distinguishing between creative and defensive forms of consumption and by highlighting the inherent tension between comfort and pleasure, Scitovsky offers an innovative and challenging conception of the desired relationship between economics and education that can serve as an alternative to the one that prevails today and amend its many fallacies. The paper concludes by briefly exploring some of the educational implications that stem from Scitovsky’s thought. It is maintained that Scitovsky’s views provides an original defense for teaching the arts and humanities and a suggestive perspective on consumer education and teaching of high culture. (shrink)

This article develops a more comprehensive understanding of data mining by examining the application of this technology in the marketplace. In addition to exploring the technological issues that arise from the use of these applications, we address some of the social concerns that are too often ignored.As more firms shift more of their business activities to the Web, increasingly more information about consumers and potential customers is being captured in Web server logs. Sophisticated analytic and data mining software tools enable (...) firms to use the data contained in these logs to develop and implement a complex relationship management strategy. Although this new trend in marketing strategy is based on the old idea of relating to customers as individuals, customer relationship management actually rests on segmenting consumers into groups based on profiles developed through a firm's data mining activities. Individuals whose profiles suggest that they are likely to provide a high lifetime value to the firm are served content that will vary from that which is served to consumers with less attractive profiles. (shrink)

The ‘value-free ideal’ has been called into question for several reasons. It does not include “epistemic values”—viewed as characteristic of ‘good science’—and rejects the so-called ‘contextual’, ‘non-cognitive’ or ‘non-epistemic’ values—all of them personal, moral, or political values. This paper analyzes a possible complementary argument about the dubitable validity of the value-free ideal, specifically focusing on social sciences, with a two-fold strategy. First, it will consider that values are natural facts in a broad or ‘liberal naturalist’ sense and, thus, a legitimate (...) part of those sciences. Second, the paper will not reject the value-free ideal; rather, it will construe this ideal in a special way, not casting values aside in sciences, but bringing them to the table and rationally discussing them. Today’s predominant naturalistic view has tended to ‘naturalize’ values by looking for physicalist explanations for them—a move resisted by defenders of normativism in social sciences. At the same time, a contending ‘liberal naturalist’ stream has emerged, claiming that not all natural entities can be explained by the methods and concepts of physical sciences, and favors a non-materialist naturalism which includes mind, consciousness, meaning and value as fundamental parts of nature that cannot be reduced to matter. Hence, it may be posited that non-epistemic values could be ‘naturally’ included in the field of human sciences. (shrink)

Joseph Heath defends competitive markets and conceptualizes business ethics with reference to Pareto efficiency, which he takes to be the “implicit morality of the market.” His justification for markets is that they generate Pareto efficient outcomes, meaning that markets optimally satisfy consumer preferences. And, for Heath, business ethics is the set of normative constraints—regulation and beyond-compliance norms—needed to preserve that outcome. The present paper accepts Heath’s claim that the economic justification for markets is ethical, in that satisfying consumer preferences is (...) a good. But, contra Heath, the ethical consideration at work is a consequentialist one; and acknowledging this consequentialism exposes limitations of Heath’s “market failures” approach to business ethics. We suggest two limitations, and we expect many will accept our argument that Heath’s conception of business ethics is too narrow. The present paper outlines two broader implications. First, acknowledging that the justification for markets is ethical eliminates the apparent—and false—conflict between purportedly amoral economic activity on one hand and ethical considerations on the other; instead, business ethics is a matter of weighing the consequentialist ethical benefit of economic activity and markets against other moral arguments/other ethical considerations. Second, Heath restricts business ethics to the constraints needed to protect the market’s ability to efficiently satisfy consumer preferences, constraints he calls “efficiency imperatives”; this restriction supports the widespread tendency to think that all social problems are economic; and, a business ethics so-conceived diminishes the perceived importance of noneconomic values—this attitude is dangerous. (shrink)

Economic formalism crowds out the analysis of change and adjustments to change under capitalism. The style of analytical narrative that was practiced by the first generation of neoclassical economists, in contrast, is more productive of genuine economic understanding. Despite Daniel Haus‐man's challenging argument to the contrary, I maintain that Joseph Stiglitz's work is formalist at its core. While I agree with Robert Heilbroner's critique of contemporary economics, there is a limited sense in which nonformalist economics can rely on universalistic assumptions. (...) And Thomas Mayer has provided useful guidelines for focusing nonformalist analysis on real‐world economic problems. (shrink)

The surge in threats aided by or carried out through cyberspace has placed significant pressure on the intelligence community to adapt or leave itself open to attack. Indeed, many in both political and intelligence circles argue for access to ever greater amounts of cyber information in order to catch potential threats before they become real. By collecting all our digital information, the intelligence community argues that it is not only able to detail what people have done or are currently doing (...) but also predict what their next move might be. However, the ethical implications are unclear and the backlash following Edward Snowden’s revelations have shown that such activities are not without controversy. This leaves the debate stuck between the important, ethical role that intelligence can play and the potential for its unrestrained use to cause undue harm. This paper will resolve this by giving greater detail to cyber-intelligence practices, highlighting the different levels of harm that the various intelligence operations can cause. The essence of this paper is not that cyber-intelligence should be banned outright, but that it can be justified given the necessary circumstances. Therefore, the paper will develop a specialised set of Just Cyber-Intelligence Principles, built on the just war tradition, to outline if and when such activities are justified. (shrink)

This article examines and assesses Bernard Hodgson’s critique of the Neoclassical concept of rationality and its place in the literature. It is argued that Hodgson’s Trojan horse critique is superior to the others because it addresses the role of empiricist epistemology in reducing reason to instrumental rationality and consequent disappearance of the human subject of political economy. The second phase of the empiricist level of analysis reintroduces the capacities for ethical deliberation, self-determination, and the socio-historical conditions and institutional setting of (...) the economic agent. Because Hodgson’s solutions presuppose empiricist terrain, they are arbitrary. This occurs because the fundamental problem of Neoclassical rationality is its ontology. Yet by introducing the human subject into economic theory, Hodgson’s solutions move onto an ontological terrain adequate for economic analysis of human subjects. (shrink)

The history of the documentation of health inequality is long. The way in which health inequality has customarily been documented is by comparing differences in the average health across groups, for example, by sex or gender, income, education, occupation, or geographic region. In the controversial World Health Report 2000, researchers at the World Health Organization criticized this traditional practice and proposed to measure health inequality across individuals irrespective of individuals’ group affiliation. They defended its proposal on the moral grounds without (...) clear explanation. In this paper I ask: is health inequality across individuals of moral concern, and, if so, why? Clarification of these questions is crucial for meaningful interpretation of health inequality measured across individuals. Only if there was something morally problematic in health inequality across individuals, its reduction would be good news. Specifically, in this paper I provide three arguments for the moral significance of health inequality across individuals: (a) health is special, (b) health equity plays an important and unique role in the general pursuit of justice, and (c) health inequality is an indicator of general injustice in society. I then discuss three key questions to examine the validity of these arguments: (i) how special is health?, (ii) how good is health as an indicator?, and (iii) what do we mean by injustice? I conclude that health inequality across individuals is of moral interest with the arguments (b) and (c). (shrink)

This paper gives prescriptions for introducing ethical concerns into the economic theory of the firm. Topics include social responsibility, corporate governance, profit maximization, competition barriers, collusion, the market system, and welfare economics. The need for such prescriptions is based on a content analysis of 21 managerial economics texts for their coverage of ethics. My analysis finds that substantive discussions of ethics are conspicuous by their absence. As ethical breaches can involve significant monetary damages to a firm – particularly through adverse (...) market reactions – moral-reasoning abilities can complement analytical skills. Consequently, my analysis demonstrates how ethics figure into the opportunity costs of managerial decision making, which is central to the economic definition of profit. (shrink)

Despite the prevalence of the terms utilitarianism and utilitarian in the health care and health policy literature, anecdotal evidence suggests that authors are often not fully aware of the diversity of utilitarian theories, their principles, and implications. Further, it seems that authors often categorically reject utilitarianism under the assumption that it violates individual rights. The tendency of act utilitarianism to neglect individual rights is attenuated, however, by the diminishing marginal utility of wealth and the disutility of a protest by those (...) who are disadvantaged. In practice, act utilitarians tend to introduce moral rules and preserve traditional rules. At the same time, the tenability of rule utilitarianism is limited because it ultimately collapses into act utilitarianism or a deontological theory. Negative utilitarianism is a viable utilitarian variant only if we accept complete aversion to suffering, ie, if we disregard any forgone opportunities to increase pleasure. Finally, the adoption of preference utilitarianism requires us to accept the subjectivity of individual claims which may be perceived as unfair. (shrink)

In the methodology of scientific research programs (MSRP) there are important features on the problem of prediction, especially regarding novel facts. In his approach, Imre Lakatos proposed three different levels on prediction: aim, process, and assessment. Chapter 5 pays attention to the characterization of prediction in the methodology of research programs. Thus, it takes into account several features: (1) its pragmatic characterization, (2) the logical perspective as a proposition, (3) the epistemological component, (4) its role in the appraisal of research (...) programs, and (5) its place as a value for scientific research. -/- The notion of “novel facts” is highly relevant in his conception, where several aspects are involved: the directions of novel facts, the different kinds of novelty, and the transition from six possible options of “novel facts” to four choices. Thereafter, the prediction of novel facts as the criterion of appraisal is considered. On the one hand, this requires analyzing the theoretical, empirical, and heuristic possibilities of appraisal; and, on the other, whether there is an overemphasis on the role of prediction in methodology of scientific research programs. As a consequence, there is an analysis of Lakatos’ criterion of appraisal in MSRP and economics. (shrink)

The social sciences, and particularly economics, play an important role in business. This article reviews the account of the interdisciplinary conversation between Catholic Social Teaching and the social sciences (especially economics) over the last century, and describes Benedict XVI’s development of this account in Caritas in Veritate . Over time the popes recognized that the technical approach of economics was a barrier to fruitful collaboration between economics and Catholic Social Teaching, both because the economic approach is reductionist, and because modern (...) social science is skeptical of comprehensive accounts of human nature. Through an appeal to charity in truth, one can deduce from Caritas in Veritate that economists, along with business and management theorists, need to take seriously the project of reflecting on and promoting true human goods in society. To love the person one must reflect on what is truly good for the person; to discover the true good of the person, one must love the person. (shrink)

Recent interpretations of citizenship are firmly rooted in the value of social membership and social participation. Citizens are described as having a moral right to draw upon the support of the community, but at the same time have a responsibility to contribute to the provision of social services such as health care. In contrast, contemporary health economics has been criticised for taking a narrow and individualistic view of human behaviour. This paper examines the extent to which economic theory and practice (...) have been developed to accommodate a more ‘civic’ view, namely, the notions of mutual concern for community members, social participation and social rights. It is argued that because the provision of health care is often linked to feelings of compassion and social responsibility and not just to individual well-being, this sort of insight may enrich economic analysis and, in turn, provide a way around health economics’ reputed ‘dead end’. (shrink)

Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.

We briefly review the recent literature on globalization, and present empirical evidence showing that economic globalization has been correlated with higher economic growth and lower poverty rates. We then evaluate the consequences of economic globalization in light of standards of commutative justice as Smith articulated, distributive justice as Rawls presented, and practical justice as Kolm explicated. This essay argues that economic globalization fulfills the requirements of all three species of justice.

The most common argument against the use of rational choice models outside economics is that they make unrealistic assumptions about individual behavior. We argue that whether the falsity of assumptions matters in a given model depends on which factors are explanatorily relevant. Since the explanatory factors may vary from application to application, effective criticism of economic model building should be based on model-specific arguments showing how the result really depends on the false assumptions. However, some modeling results in imperialistic applications (...) are relatively robust with respect to unrealistic assumptions. Key Words: unrealistic assumptions • economics imperialism • rational choice • as if • robustness. (shrink)

There is a wide variety of ethical arguments for public financing of health care that share a common structure built on a series of four logically related propositions regarding: the ultimate purpose of a human life or human society; the role of health and its distribution in society in advancing this ultimate purpose; the role of access to or utilisation of health care in maintaining or improving the desired level and distribution of health among members of society, and the role (...) of public financing in ensuring the ethically justified access to and utilisation of health care by members of society. This paper argues that economics has much to contribute to the development of the ethical foundations for publicly financed health care. It focuses in particular on recent economic work to clarify the concepts of access and need and their role in analyses of the just distribution of health care resources, and on the importance of economic analysis of health care and health care insurance markets in demonstrating why public financing is necessary to achieve broad access to and utilisation of health care services. (shrink)

The purpose of this article is to introduce a Cartesian product structure into the social choice theoretical framework and to examine if new possibility results to Gibbard’s and Sen’s paradoxes can be developed thanks to it. We believe that a Cartesian product structure is a pertinent way to describe individual rights in the social choice theory since it discriminates the personal features comprised in each social state. First we define some conceptual and formal tools related to the Cartesian product structure. (...) We then apply these notions to Gibbard’s paradox and to Sen’s impossibility of a Paretian liberal. Finally we compare the advantages of our approach to other solutions proposed in the literature for both impossibility theorems. (shrink)

The use of agency theory remains highly controversial among business ethicists. While some regard it as an essential tool for analyzing and understanding the recent spate of corporate ethics scandals, others argue that these scandals might not even have occurred had it not been for the widespread teaching of agency theory in business schools. This paper presents a qualified defense of agency theory against these charges, first by identifying the theoretical commitments that are essential to the theory (in order to (...) distinguish between agency theory itself and certain incorrect interpretations that have been widely promulgated), and second, by specifying more clearly the different ways that agency theory can be used to analyze relations within the firm. The recommendation that follows from this analysis is that agency theory be used as a critical-diagnostic tool, to identify the points at which both firms and markets will be vulnerable to breakdown in the absence of moral constraint. (shrink)

: Eponymic honor is a common form of professional recognition in economics, as it is in other sciences. There also seems to be convincing evidence that individuals exposed to economic theory behave less cooperatively and more self-interestedly than individuals who have not been exposed to such economic ideas. Taken together these two facts would seem to suggest that the history of economic thought would be a history of rather contentious priority fights. If economists generally behave in self-interested and non-cooperative ways, (...) and having your name attached to a particular result serves one’s professional self-interest, then economists should be quick to fight for these eponymic honors. This means that economists should be continually involved in sordid disputes about who does, and who does not, get credit for various economic discoveries. The paradox is that such priority fights do not exist in economics. The paper examines absence of such disputes from a Mertonian perspective. (shrink)

This paper considers the distribution of responsibility for prevention of negative social or ecological effects of production and consumption. Responsibility is related to ability and ability depends on welfare. An increase in competition between Western companies depresses their profitability, but increases the welfare of Western consumers and,hence, their ability to acknowledge social values. Therefore, an increase in competition on consumer markets shifts the balance in responsibility from companies to consumers to prevent negative external effects from production and consumption patterns. An (...) increase in competition on investor markets will shift the balance in an opposite direction. (shrink)

In the future systems of ambient intelligence will include decision support systems that will automate the process of discrimination among people that seek entry into environments and to engage in search of the opportunities that are available there. This article argues that these systems must be subject to active and continuous assessment and regulation because of the ways in which they are likely to contribute to economic and social inequality. This regulatory constraint must involve limitations on the collection and use (...) of information about individuals and groups. The article explores a variety of rationales or justifications for establishing these limits. It emphasizes the unintended consequences that flow from the use of these systems as the most compelling rationale. (shrink)

It is central to standard economic theory that people act on their interests. People are interested in a variety of things, so a range of values should influence market behavior. When engaged in commerce, however, people generally act for personal gain; the influence of other values usually just disappears in the marketplace. What is missing from the standard account is that people often act on proper subsets of their interests. Economics can, however, be extended to capture this insight. Key Words: (...) economic theory • attention • self-interest • social responsibility • discrimination. (shrink)

Many questions concerning health involve values. How well is a health system performing? How should resources be allocated between the health system and other uses or among competing healthrelated uses? How should the costs of health services be distributed among members of a population? Who among those in need of transplants should receive scarce organs? What is the best way to treat particular patients? Although many kinds of expertise bear on these questions, values play a large role in answering them. (...) These values are of many kinds – judgments about how health states contribute to the well-being of individuals depend on views about what is good for a person, whereas judgments about how to share the costs of health care or about how to distribute scarce organs among those in need of transplants depend on theories of fairness. The value judgments that need to be made are not only multifaceted and heterogeneous; they are also controversial. Both the understanding of the questions and the substance of the answers may vary widely from individual to individual and among different groups within countries and across national boundaries. How are these many complicated, difficult and controversial evaluative questions to be answered? This could be a question about who should answer them as well as a question about how they should be answered. There are various possible mechanisms, and there is no reason why the same method should be employed to answer every question. Among the possible methods are (1) moral argument, (2) political deliberation and (3) eliciting preferences or judgments from some group. Included in the third method lie many different techniques of elicitation. For example, one could study attitudes by the use of deliberative (focus) groups, by permitting individual choice in some sort of market or quasi-market, by polling or by voting. These methods of answering evaluative questions are not always incompatible with one another. Moral argument can play a role within political deliberation, deliberation by focus groups, individual market choice, or voting.. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

This thesis is about whether it is a good idea to place monetary value on nature, to remedy the fact that we treat it as having no particular value to us humans, although it clearly has. The thesis is based on five research papers that can be said to position themselves on opposite sides in the debate on monetisation of nature. The first two papers consider the basis of neoclassical environmental economics and apply the value theory and valuation methods from (...) normative neoclassical welfare theory, on which monetisation of nature is based. The other three papers examine, with increasing degrees of criticism, this theory of value and especially its central assumption that value can be derived from people’s choices, or “revealed preferences”. The thesis itself is a “reflective story” about the journey I made as I learned to think about and understand neoclassical environmental economics in new ways. I reflect upon my work from a philosophy of science perspective, consider how for-granted-taken ideas from neoclassical economics affect environmental economic analysis and its conclusions, and examine the subject of value and valuation from what has become my new theoretical standpoint, ecological economics. It concerns meta-theoretical questions about ontology, that is, ideas in a research discipline about how things really are, and epistemology, ideas about how researchers can provide relevant knowledge about reality. Such ideas are often taken for granted in neoclassical economic analysis and how they affect the analysis and its conclusions is not seldom unreflective. In the thesis, I move from explaining why neoclassical environmental economists advocate monetisation and pricing of nature as important solutions to environmental problems, to exemplifying how this turned out in research projects intended to serve as decision support in practice, and then to exploring and clarifying an alternative theory of value and valuation from ecological economics based on value pluralism and so-called deliberative valuation. In a concluding discussion, I point out that there are reasons to be sceptical about whether monetisation of nature is the right path to follow if we want to change our unsustainable relationship with nature and tackle the serious ecological crises we currently face. I show that monetisation of nature in practice requires a considerable amount of pragmatism, since the applied version of the theory deviates far from its idealised claims about the possibility to capture actual, total values. I also show that the descriptive part of neoclassical theory and its normative part overlap in a way that makes it very difficult to speak of “objective” science in environmental economics. Instead, and despite strong recognition in the discipline that environmental problems are “market failures”, neoclassical theory has an ethical and ideological bias that favours individuals’ freedom of choice and market solutions, at the expense of collective decision-making and discussions about values that cannot be quantified. The important contribution of the thesis is that it clarifies the consequences of a central idea in the theory behind environmental economic analysis, namely the idea of values as commensurable, that is, measurable in one single unit. This idea links to the misleading conception of choices as “trade-offs”, where all choices are essentially viewed as the result of people’s constant exchange of costs and benefits within themselves in every choice they make, with the result that everything gets better. Based on my research, I suggest that, in reality, people do not generally “make” trade-offs. If anything, people try to avoid them, especially when it comes to difficult choices, such as those concerning the true value of nature, because such choices involve moral conflicts between values that are incommensurable. As a basis for valuing transformational change, monetisation is therefore unsuitable, as it conceals rather than reveals the ethical dilemmas that are the very definition of sustainability problems and causes us to search for the efficient or so-called “optimal” solutions claimed possible in neoclassical theory and rhetoric, although such solutions do not exist. What we need instead is to represent public opinion in environmental decision-making in ways that do not conceal people’s actual moral considerations. Environmental valuation is political. It must be done together with others through reason-sensitive means, where people’s actual experiences of value conflicts – within us and between us – can be deliberated before making decisions. This makes decision-making more complex, but as an alternative to monetisation, this realism is not necessarily unrealistic. The fact that incommensurability is grounded in human experience means that the complexity of social and environmental decision-making has a real counterpart in conflicts within ourselves. One could see this as a potentiality, because we may have more confidence in people’s ability to recognise the relevance and necessity of less simplification and more complexity in decision-making. People need to “deliberate values” rather than “consuming” them and being expected to express all sorts of values through money. (shrink)