Economic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. Many large capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so, thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper argues that the goal of increasing economic profit is fully consistent with the corporation doing good for society. However, there is little (...) justification for corporations to transfer the whole economic profit to shareholders. Economic agents entitled to receive the economic profit are precisely those who create this profit, namely the internal entrepreneurs. (shrink)

Although Minsky’s interpretation of Keynes’s macroeconomics and essential message clashes with authoritative alternative interpretations, it has become increasingly influential during the years following the Global Financial Crisis, even in mainstream circles. This paper offers a critical evaluation of Minsky’s Financial Instability Hypothesis from the perspective of the alternative Austro-Wicksellian paradigm. Although some of the similarities and/or analogies between Minsky’s approach and that of the Austrian School suggest a more than merely superficial affinity between the two theoretical frameworks and although some (...) scope for cross-fertilization between both approaches can be found, both theoretically and empirically, at a fundamental conceptual level both theories remain incompatible and difficult if not impossible to reconcile, in particular in terms of fundamental causality and in terms of policy conclusions and prescriptions. Despite the fact that Minsky’s policy conclusions are multifaceted and somewhat eclectic, they manifest a lack of familiarity with the conclusions of the Austrian analysis of the problems of central planning by Big Players such as Big Bank and Big Government. Both approaches also offer contrasting interpretations of the historical experience of the Global Financial Crisis. (shrink)

Modern discussions of natural resources focus on increasing public control over extractive industries proposing measures that range from increasing the public's share of the gain via royalties and taxes to regulating extractive activities to prevent environmental problems to outright expropriation of private investments. This article argues that such efforts are counterproductive because the fundamental economic problem of natural resources is producing the knowledge necessary to locate and extract resource deposits. The public benefit comes from enabling the use of the resources (...) and the increased economic activity their discovery produces rather than from royalties or expropriation. The key question in designing natural resource laws is thus their effects on the incentive to discover and manage resources. Private property rights in natural resources are the best way to provide such incentives. Fortunately, the combination of property rights and tort law principles (trespass and nuisance) enables property rights to solve environmental problems related to natural resource extraction as well. (shrink)

Although the ecological tradition tends to favour a substantive role for non-market institutions in securing objectives such as environmental sustainability, Green theorists have paid relatively little attention to the important challenge posed to such proposals by the pro-market arguments of Austrian economics. The methods of ecological economics, such as multiple criteria evaluation, offer important potential for responding to the Austrian thesis that democratic, non-market institutions face a coordination problem in the face of complexity. However, the development of an adequate ecological (...) response to the Austrians requires clarification of the conceptual underpinnings and potential scope of such methods. (shrink)

Postmodernism is often characterized, among other things, as the belief in the unattainability of objective truth and as a rejection of teleological and reductionist, or essentialist, forms of thought. For instance, in his provocative book The Rhetoric of Economics, Donald McCloskey sketches the implications for economic methodology of Richard Rorty's rejection of the modernist quest for Truth, as represented by various rationalist and empiricist epistemologies. McCloskey describes modernist methodology as displaying a desire to predict and control, a search for objective–;which (...) often means measurable–;knowledge, and an attempt to develop a value-free inquiry, among other characteristics. This “methodological correctness,” McCloske suggests, is discredited by the postmodern dissatisfaction with traditional epistemology. Thus, in place of the modernist belief in a rule-guided path to truth, he advocates a “free market” approach to knowledge, in which participants in the variety of theoretical conversations agree to be earnest and listen politely to one another. (shrink)

In a recent article in this journal, D. Wade Hands reviewed Charles Taylor's two-volume work, Philosophical Papers. Hands predicts that Taylor's work will have no impact on the philosophy of economics. This may indeed turn out to be the case; but if so, it will only be because the profession is not listening. Of course, it is typical of the profession to be more interested in exporting its product than in learning from other disciplines. This is exemplified in Hands's use (...) of the term “philosophy of economics” – philosophy is the handmaiden of the highly successful enterprise of economics. But this journal is called Economics and Philosophy, which means that a conversation requiring an openness and attentiveness is called for between economics and philosophy. (shrink)

I propose a conception of critical theory that is an alternative to that of the Frankfurt School and Habermas. It is based on the assumptions that critical theory is not unique but started off with the 5th century BC movement of the sophists that aimed at an understanding of society free from superstition and prejudice, can be better understood by considering the history of social thinking, does not look for knowledge for knowledge’s sake but for solving practical problems, distinguishes basic (...) social problems from dependent problems, looks for and defends a value to guide it both in its research and its solutions, prefers the value of capability development to that of happiness. (shrink)

The stated aim of cryptocurrencies is to free the monetary system from the need to trust financial intermediaries, by relying on incentive design and technology. Many descriptive studies, however, have questioned cryptocurrencies’ delivery on the promise of trustlessness. This paper promotes a normative analysis of trust in cryptocurrencies by discussing (i) whether trust is in principle eliminable, and (ii) whether trustlessness is in itself a desirable goal. These issues are closely related, we argue, to the further issue of what kind (...) of institutions cryptocurrencies represent. We discuss the cognitive functions played by cryptocurrencies through the lens of the “extended mind” hypothesis in the philosophy of mind and hence conceive of cryptocurrencies as mind-extending institutions. As the models of institutional mind extension differ in the fiduciary bond they assume exists between individuals and institutional resources, we compare the reliance-based model of “scaffolding institutions” with the trust-based model of “cognitive institutions,” showing that the ineliminability and desirability of trust lead to seeing cryptocurrencies as instances of the latter. In the end, our discussion suggests that trust is a necessary component of cryptocurrencies’ cognitive functions and its promotion helps to perform such cognitive functions more effectively and sustainably. (shrink)

This paper compares Joseph Heath’s critique of the just deserts rationale for markets with an earlier critique due to Frank Knight, Milton Friedman, and Friedrich Hayek. Heath shares their emphasis upon the role of luck in prices based on supply and demand. Yet he avoids their claim that the inheritance of human capital is on a moral par with the inheritance of ordinary capital, as a basis for unequal shares of the social product. Heath prefers to argue that markets do (...) not tend to reward talent as such. The paper raises some doubts about this factual claim, and argues that sweeping the issue of talent under the rug threatens to make our theory of justice less egalitarian than it would otherwise be. The paper also addresses the objection that claims of unfairness based on the arbitrariness of the distribution of innate abilities will undermine self-respect. (shrink)

The essays in this book began as a contributions to a Summer Workshop arranged by the Calgary Institute for the Humanities, and haled at the University of Calgary from July 7 to 14, 1978. The Institute, which was founded by the University in 1976 for the encouragement of humanistic studies, has held such conferences each summer as a part of its programme of research.

Epistemic questions have become an important area of debate within democratic theory. Epistemic democrats have revived epistemic justification of democracy, while social scientific research has speared a significant debate on voter knowledge. An area which has received less attention, however, is the epistemic case for markets. Market advocates have developed a number of epistemic critiques of democracy which suggest that most goods are better provided by markets than democratic institutions. Despite representing important challenges to democracy, these critiques have gone without (...) reply as democratic theorists have tended to exclude markets from consideration. This article responds to these critiques and argues that there are good epistemic grounds for granting a much greater role to democracy than its market critics have claimed. It argues that there is a broad range of goods, including important ethical goods, which are better provided by democracy than markets due to the particular epistemic burdens they create. (shrink)

Despite the recent proliferation of scholarship on anarchism, very little attention has been paid to the historical and theoretical relationship between anarchism and philosophy. Seeking to fill this void, Brill's Companion to Anarchism and Philosophy draws upon the combined expertise of several top scholars to provide a broad thematic overview of the various ways anarchism and philosophy have intersected. Each of its 18 chapters adopts a self-consciously inventive approach to its subject matter, examining anarchism's relation to other philosophical theories and (...) systems within the Western intellectual tradition as well as specific philosophical topics, subdisciplines and methodological tendencies. (shrink)

Value capture occurs when an agent’s values are rich and subtle; they enter a social environment that presents simplified — typically quantified — versions of those values; and those simplified articulations come to dominate their practical reasoning. Examples include becoming motivated by FitBit’s step counts, Twitter Likes and Re-tweets, citation rates, ranked lists of best schools, and Grade Point Averages. We are vulnerable to value capture because of the competitive advantage that such crisp and clear expressions of value have in (...) our private reasoning and our public justification. There is, however, a price. In value capture, we take a central component of our autonomy — our ongoing deliberation over the exact articulation of our values — and we outsource it. And the metrics to which we outsource usually engineered for the interests of some external force, like a large-scale institution’s interest in cross-contextual comprehensibility and quick aggregability. That outsourcing cuts off one of the key benefits to personal deliberation. In value capture, we no longer adjust our values and their articulations in light of own rich experience of the world. Our values should often be carefully tailored to our particular selves or our small-scale communities, but in value capture, we buy our values off the rack. In some cases – like decreasing CO2 emissions – the costs of non-tailored values are outweighed by the benefit of precise collective coordination. In other cases, like in our aesthetic lives, they are not. This suggests that we should want different values suited to different scales. We should want value federalism. Some values are perhaps best pursued at the largest-scale level, others at smaller scales. The problem occurs when we exhibit an excess preference for the largest-scale values – when we consistently let the universal metrics swamp our quieter interests. (shrink)

A number of writers have drawn on Hayek’s epistemic defence of market institutions to argue that free-markets and tort law are best placed to overcome the knowledge problems associated with the environmental sphere. This paper argues to the contrary, that this Austrian School approach itself suffers from significant knowledge problems. The first of these relates to the ability of Austrian economics to assign victim compensation and the second to the difficulty of establishing causation in complex environmental problems. The paper will (...) also show how alternative approaches may not suffer from these epistemic challenges and are better placed to overcome them. (shrink)

This paper introduces a theory of ownership that is rooted in Israel Kirzner’s theory of entrepreneurship – The Entrepreneurial Theory of Ownership. Its central idea is that natural resources are not available to us automatically as other approaches to justice implicitly assume. Before we can use a resource, we need to do preparatory work in the form of making an entrepreneurial judgement on it. This fact, as I argue, makes it possible to put private ownership as a natural right on (...) a firm normative ground and answer many traditional challenges to private property. (shrink)

This paper identifies the major failings of mainstream economics and the rational choice theory it relies upon. These failures were identified by the four figures mentioned in the title: economics treats agents as rational fools; by the time the long … More ›.

Den Beteiligten des Politikbetriebs einschließlich Wählern, Aktivisten und Spitzenpolitikern fehlt häufig der grundlegende Sachverstand für die jeweiligen politischen Entscheidungen. Selbst Experten verstehen gesellschaftliche Mechanismen kaum und können deren Auswirkung kaum vorhersagen. Nur auf einfachste und unstrittige politische Behauptungen ist Verlass. Teilweise rührt das daher, dass politisches Wissen schwer zu erlangen ist, und teilweise daher, dass der Einzelne keinen ausreichenden Ansporn hat, es zu erlangen. Demzufolge besteht der beste Ratschlag an die politischen Akteure sehr häufig schlicht darin, gesellschaftliche Probleme nicht anzugehen, (...) zumal Eingriffe, die nicht auf einem genauen Verständnis beruhen, vermutlich mehr Schaden als Nutzen anrichten. -/- [This is a German translation of "In Praise of Passivity". Studia Humana 1,2 (2012): 12-28.]. (shrink)

The aim of this contribution is to provide an overview of conceptual approaches to incorporating a decision maker’s non-knowledge into economic theory. We will focus here on the particular kind of non-knowledge which we consider to be one of the most important for economic discussions: non-knowledge of possible consequence-relevant uncertain events which a decision maker would have to take into account when selecting between different strategies.

The book’s core argument is that an artificial intelligence that could equal or exceed human intelligence—sometimes called artificial general intelligence (AGI)—is for mathematical reasons impossible. It offers two specific reasons for this claim: Human intelligence is a capability of a complex dynamic system—the human brain and central nervous system. Systems of this sort cannot be modelled mathematically in a way that allows them to operate inside a computer. In supporting their claim, the authors, Jobst Landgrebe and Barry Smith, marshal evidence (...) from mathematics, physics, computer science, philosophy, linguistics, and biology, setting up their book around three central questions: What are the essential marks of human intelligence? What is it that researchers try to do when they attempt to achieve "artificial intelligence" (AI)? And why, after more than 50 years, are our most common interactions with AI, for example with our bank’s computers, still so unsatisfactory? Landgrebe and Smith show how a widespread fear about AI’s potential to bring about radical changes in the nature of human beings and in the human social order is founded on an error. There is still, as they demonstrate in a final chapter, a great deal that AI can achieve which will benefit humanity. But these benefits will be achieved without the aid of systems that are more powerful than humans, which are as impossible as AI systems that are intrinsically "evil" or able to "will" a takeover of human society. (shrink)

This article reviews claims for creativity in the economy and in education distinguishing two accounts: 'personal anarcho-aesthetics' and 'the design principle'. The first emerges in the psychological literature from sources in the Romantic Movement emphasizing the creative genius and the way in which creativity emerges from deep subconscious processes, involves the imagination, is anchored in the passions, cannot be directed and is beyond the rational control of the individual. This account has a close fit to business as a form of (...) 'brainstorming', 'mind-mapping' or 'strategic planning', and is closely associated with the figure of the risk-taking entrepreneur. By contrast, 'the design principle' is both relational and social and surfaces in related ideas of 'social capital', 'situated learning', and 'P2P' (peer-to-peer) accounts of commons-based peer production. It is seen to be a product of social and networked environments — rich semiotic and intelligent environments in which everything speaks. The article traces the genealogies of these two contrasting accounts of creativity and their significance for educational practice before showing how both notions are strongly connected in accounts of new forms of capitalism that require a rethinking of the notion of creativity and its place in schools and institutions of higher education. The article begins by providing a context in terms of a history of the knowledge economy and the historical tendency toward aesthetic or designer capitalism. (shrink)

This book explores the economic institutions that determine the nature of animal lives as systematically exploited objects traded in a market economy. It examines human roles and choice in the system, including the economic logic of agriculture, experimentation, and animal ownership, and analyses the marginalization of ethical action in the economic system. -/- Animals and the Economy demonstrates that individual consumers and farmers are often left with few truly animal-friendly choices. Ethical participants in the economy must either face down an (...) array of institutional barriers, or exit mainstream markets entirely. This book argues that these issues are not necessary elements of a market system, and evaluates a number of policy changes that could improve the lives of animals in the context of a market economy. (shrink)

This volume collects selected papers delivered at the 15th Conference of the International Society for Utilitarian Studies, which was held at Karlsruhe Institute of Technology in July 2018. It includes papers dealing with the past, present, and future of utilitarianism – the theory that human happiness is the fundamental moral value – as well as on its applications to animal ethics, population ethics, and the future of humanity, among other topics.

This book on the topic of ethics and poetry consists of contributions from different continents on the subject of applied ethics related to poetry. It should gather a favourable reception from philosophers, ethicists, theologians and anthropologists from Africa, Asia, Europe and Latin America and allows for a comparison of the healing power of words from various religious, spiritual and philosophical traditions. The first part of this book presents original poems that express ethical emotions and aphorism related to a philosophical questioning (...) of the grounding of our values for life. The poems are written by twelve authors coming from four continents, for whom poetic emotions are sources of artistic inspiration and that can be used for conflict resolution. In the second part, which features short essays, nine authors tackle how poems, symbolic representations, metaphorical narratives and lies impact the space of possibilities, in which we are moved to action, knowledge formation, and how we imagine the world together. (shrink)

Friedrich von Hayek’s classical liberalism argued that free markets allow individuals the greatest opportunity to achieve their ends. This paper develops an internal critique of this claim. It argues that once externalities are introduced, the forms of economic knowledge Hayek thought to undermine government action and orthodox utilitarianism also rule out relative welfarist assessments of more or less regulated markets. Given the pervasiveness of externalities in modern economies, Hayek will frequently be unable to make comparative welfarist claims, or he must (...) relax his epistemic assumptions and allow for greater government action than his classical liberalism would wish to accept. (shrink)

ABSTRACT:This commentary develops my position on the ethics of price gouging in response to Jeremy Snyder's article, “What's the Matter with Price Gouging.” First, it explains how the “nonworseness claim” supports the moral permissibility of price gouging, even if it does not show that price gougers are morally virtuous agents. Second, it argues that questions about price gouging and distributive justice must be answered in light of the relevant possible institutional alternatives, and that Snyder's proposed alternatives to price gouging fare (...) worse on the dimension of justice than a system in which goods are allocated by a system of market prices. (shrink)

Libertarianism is a controversial political theory. But it is often presented as a resting upon a simple, indeed commonsense, moral principle. The libertarian “Non-Aggression Principle” (NAP) prohibits aggression against the persons or property of others, and it is on this basis that the libertarian opposition to redistributive taxation, legal paternalism, and perhaps even the state itself is thought to rest. This paper critically examines the NAP and the extent to which it can provide support for libertarian political theory. It identifies (...) two problems with existing libertarian appeals to the NAP. First, insofar as libertarians employ a moralized understanding of aggression, their principle is really about the protection of property rights rather than the prohibition of aggression. Second, the absolutist prohibition on aggression, which libertarians typically endorse and which is necessary to generate strongly libertarian conclusions, is grossly implausible. The paper concludes by setting forth a version of the NAP that does not suffer from these problems. It argues that this more moderate and defensible version of the NAP still has important libertarian implications, but that a full defense of libertarianism cannot rely upon appeals to non-aggression alone. (shrink)

Robert Mayer argues that certain kinds of high-interest payday loans should be legally prohibited. His reasoning is that such lending practices compel more solvent borrowers to cross-subsidize less solvent ones, and thus involve a kind of negative externality. But even if such cross-subsidization exists, I argue, this does not necessarily provide a ground for legal prohibition. Such behavior might be a necessary component of a competitive market that provides opportunities for mutually beneficial transactions to willing customers. And the alternative of (...) a government-mandated interest rate faces severe problems of its own. (shrink)

Building on Friedrich A. Hayek’s work in social philosophy, the paper gives an account of the central role of ignorance in institutional epistemology. The first part of the paper argues that if individuals involved in the search for knowledge are constitutionally ignorant and guided by norms, as Hayek saw them, they are more likely to attain knowledge if they follow different norms, including those that are redundant. The second part of the paper argues that the market as an institutional arrangement, (...) preferred by Hayek for its epistemic features, may lead to an epistemically detrimental reduction of agents following redundant norms. (shrink)

In this paper, I develop an epistemological argument for freedom from poverty, building on Gerald Gaus’ work on political and moral disagreement in New Diversity Theory (NDT). NDT argues that diversity and disagreement are fundamental to political and moral learning. In this paper, I address Gaus’ central arguments in NDT, and focus on what I argue to be the key epistemological distinction of his account—namely, the argument that the relevant diversity, which is conducive to political and moral learning and should (...) therefore be protected by an institutional order, should not be defended or defined by reference to its performance with regards to discovery of true beliefs, but by reference to the independent epistemic value of protection of disagreeing, redundant and distant investigators. I develop a restatement of this argument from the perspective of institutional epistemology, and show that (along with constitutional liberties, polycentric self-governance and markets) freedom from poverty must be considered an institutional “device” conducive to such a conception of diversity. While Gaus rejects redistributive policies at the level of an institutional order, it is precisely his account of the epistemic powers of diversity and disagreement which provides the strongest defense of minimal redistribution. (shrink)

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly related to the (...) perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (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)

In this paper, I argue for the ethics of business based on the way that business activity may embody a vocation to partake in “the Good.” Following a Platonist framework for ethics and recent work on vocations by Robert M. Adams, I argue that understanding the ethics of vocations allows us to avoid the charges that business persons have to do something more for others—often couched in terms of social responsibility, sustainability, or consideration of stakeholders—in order to legitimize their careers (...) ethically. Rather, I claim, the ethics of a business vocation, as in any vocation, rests first and foremost in the way that a person pursues projects that answer an invitation to partake in the good things of this world. Thus, the promotion of the well-being of others, while ethically admirable and constitutive of some vocations, is not fundamental for understanding the ethics of vocations themselves, even in business. There are important implications for the ethics of markets, and I also consider a recent challenge to my approach that claims that true business vocations demand a more direct promotion of the well-being of others. (shrink)

Basing their claims on findings in the behavioral sciences that illuminate cognitive deficiencies, scholars spanning multiple disciplines argue that certain features of free market capitalist societies threaten human wellbeing, especially insofar as such societies are marked by a proliferation of consumer choices and incessant demands on decision making. This paper thus attempts three things. First, it outlines the criticisms of the expansive freedoms found in free market societies, based on those findings, in order to provide a reliable overview of the (...) shape of the critics’ concerns. Second, it surveys typical objections to these critics’ concerns, while also taking note of actual and anticipated counter-responses, in order to demonstrate why the debate about the value of those freedoms is not settled by those objections. Third, it argues that one objection remains that demands further debate and consideration before the critics’ choice restrictions should materialize. Namely, since there is solid evidence that entrepreneurship contributes to overall happy and healthy societies, and since the benefits of entrepreneurship are best realized in the types of societies marked by more expansive freedoms than the critics would countenance, the critics, who are concerned with general wellbeing, ought to consider the impact of their choice-restricting proposals on entrepreneurship. This paper does not claim that these critics offer baseless concerns about various threats to our wellbeing that arise from ample exercises of liberty, but it does argue that recognizing the role that entrepreneurship plays in fostering such wellbeing severely dampens the force of their implications for liberty. (shrink)

In the business ethics literature, many argue that managerial decision making ought to be improved by more robust ethical concerns. Some see the virtue of “practical wisdom” as the key for improved managerial decision making. However, because of the epistemic limitations confronting decision makers in the face of irreducible market complexity, there is a risk that practical wisdom, employed in the context of day‐to‐day managerial decision making, becomes an impractical concept. Nevertheless, if the attempt to incorporate virtue ethics (and its (...) related concepts) into business practices is laudable, if indeed a virtuous life is worth pursuing and practical wisdom plays an essential role toward that end, it is important to attempt to salvage practical wisdom and uncover its appropriate usage. Thus, this article pursues two major ends. First, upon surveying some of the prominent and standard usages of the term, it articulates concerns, rooted in epistemic limitations, about the way that practical wisdom appears in business ethics literature. Second, it offers a new way forward for understanding “practical wisdom.” By contextualizing day‐to‐day, rule‐based managerial decision making within the ethical value of the market order, practical wisdom reappears as the higher‐order capacity to pursue vocations, as morally worthwhile projects, in business. (shrink)

In this letter, we argue that an economic perspective on the mind has played—and should continue to play—a central role in the development of cognitive science. Viewing cognition as the productive application of mental resources puts cognitive science and economics on a common conceptual footing, paving the way for closer collaboration between the two disciplines. This will enable cognitive scientists to more readily repurpose economic concepts and analytical tools for the study of mental phenomena, while at the same time, enriching (...) our understanding of the modern economy, which is increasingly driven by mental, rather than physical, production. (shrink)

This paper discusses a crisis of accountability that arises when scientific collaborations are massively epistemically distributed. We argue that social models of epistemic collaboration, which are social analogs to what Patrick Suppes called a “model of the experiment,” must play a role in creating accountability in these contexts. We also argue that these social models must accommodate the fact that the various agents in a collaborative project often have ineliminable, messy, and conflicting interests and values; any story about accountability in (...) a massively distributed collaboration must therefore involve models of such interests and values and their methodological and epistemic effects. (shrink)

In various debates about science, appeal is made to the freedom of scientific research. A rationale in favor of this freedom is rarely offered. In this paper, two major arguments are reconstructed that promise to lend support to a principle of scientific freedom. According to the epistemological argument, freedom of research is required in order to organize the collective cognitive effort we call science efficiently. According to the political argument, scientific knowledge needs to be generated in ways that are independent (...) of the major political powers because of the important role it plays for the citizens and their capacity to form well-informed political preferences. Both arguments are examined critically in order to identify their strengths and limitations. I argue that the scientific freedom established by both rests on a number of critical preconditions, and that the arguments’ force must be weighed against competing societal interests and values in each case of their application. Appeal to a principle of scientific freedom should therefore never mark the end, but rather the beginning of a public debate about the ends and means of science. (shrink)

Among the various institutional structures of an economy like the firm and the marketplace is one that is like no other. Science is unique. This uniqueness raises an important question: why does science exist? From an economic perspective, there are two potentially meaningful approaches to the existence of science. They both encompass institutional pluralism. A substitutes theory of comparative institutions presupposes the primacy of the commercial marketplace over firms—that firms substitute for the market when markets fail. This theory has not (...) been used to explain the existence of science. A complements theory postulates that many simultaneous institutional responses, including science, are necessary for creating an efficient and equitable economy. The economic function of science is to produce fundamental theoretical abstractions about our world. Scientific theories are public goods that would not likely be produced within the governance structures of commercial markets and firms. The aim is to complement but not supplant traditional philosophical answers that science exists to discover truth and knowledge. (shrink)

Since 1789, France has had 21 constitutional regimes. This paper explains French constitutional instability through the optic of “constitutional culture” – the norms, attitudes, and beliefs, conscious and unconscious, held by a dominant portion of the French people about the nature, scope and function of constitutional constraints. French constitutional culture has historically been torn between a desire for a strong and effective state, and an obsessive veneration of democracy. This paper argues that France’s constitutional instability between 1789 and the constitution (...) of 1958 was a series of swings between plebiscitarianism and caesarism, caused by the influences of Rousseau and Descartes. Problems remain, especially the risks of an unconstrained “hyperpresidentialism” and undue power to the street’s ability to bully the rule of law into continued rents. But the Fifth Republic has been successful because it balanced the tensions through a semi-presidential system: the plebiscitarianism of parliamentary democracy, along with the caesarism of a strong presidency. (shrink)

Three hundred years ago per capita incomes in China and Japan were about equal and fairly close to the global mean. At the end of the twentieth century Japanese per capita incomes are about as high as Western incomes and about seven times as high as Chinese incomes. How could this happen? Manchu China and Tokugawa Japan did not establish equally safe property rights for merchants and producers as the West did. But political fragmentation and feudalism within Japan provided something (...) like checks and balances against arbitrary government which China lacked. Moreover, a similar lack of respect for merchants in both countries had more favourable consequences for early commercialisation in Japan than in China. (shrink)

The article examines two digital phenomena linked to money and finance, which are the bitcoin and high-frequency trading, through the lens of Vilém Flusser’s concept of technical image. Flusser’s theory highlights three aspects of technical images: they are engendered by the act of organizing particles, are produced by people who operate devices through keys, and are mediated by code, which is linear and pertains to the era of written text, which Flusser conflates with the notion of history. In this article, (...) the argument focuses on the aspects of high-frequency trading and the blockchain that relate to the idea of images. The sections investigate how money has historically operated in the logic of Flusser’s description of symbol manipulation in relation to consciousness and temporality: from the circular time of magical consciousness to the linear time of historical consciousness, and more recently, to the non-dimensional time of post-historical consciousness. The article argues that there are two levels, or layers, in the images involved in cryptocurrencies or algorithmic trading, but only one of them is visible to the human operator or viewer, in the form of a price. The other, which indeed represents the operations in the system, is only accessible to the machines themselves. The questions raised concern the role of these recent digital financial and monetary forms in the development of a reality dominated by apparatuses and technical images. (shrink)

Ve své práci se autor zamýšlí nad používáním metod exaktních věd v ekonomii. Upozorňuje na problémy dnešních ekonomik vyvolané hospodářskou recesí a nalézá ideje, jimiž bylo dnešní ekonomické uvažování ovlivněno. Pouští se do analýzy racionalistického myšlení 19. století, které stálo za změnou obsahu výrazu "věda" a zamýšlí se nad následky, které to pro budoucí vývoj mělo. Dále analyzuje hloubku ovlivnění ekonomie exaktními vědami a svá zjištění demonstruje na příkladu laureátů Nobelových cen za ekonomii. Zjišťuje, že některé ceny byly uděleny spíše (...) za aplikaci matematických metod a pokusů o kvantifikaci, nežli za skutečnou analýzu lidského jednání. V druhé části práce se autor zamýšlí nad možnostmi vytváření svobodnější a "spravedlivější" společnosti a možnostmi vědců v této oblasti. Analyzuje činnost plánovačů a podstatu liberálního řádu. (shrink)

In the 1930s, socialist economists used the assumptions of equilibrium theory to argue that a central planner could coordinate supply and demand from above. This argument led Hayek, over the years, to try to explain the limitations of equilibrium theory and, conversely, to explain how capitalism functioned without the assumptions of equilibrium being met. In a changing world of agents who are ignorant of the future, how is a functioning market “order” possible? One answer can be found in Hayek's argument (...) that evolved rules make people's future behavior more predictable and, more to the point, that they contain previously accumulated knowledge that provides the building blocks for future economic growth. Hayek's evolutionary theory was flawed, however, in failing to explain how people can know which rules are responsible for their success or failure so that they persist in using those rules and pass them forward in time. However, markets provide immediate feedback about success and failure through profits and losses. An evolutionary explanation of the economy would have permitted Hayek to dispense with the metaphor of general equilibrium, which was increasingly irrelevant to his understanding of economic order. (shrink)

Property-owning democracies combine the regulative and redistributive functions of the welfare state with the governmental aim of ensuring that wealth and capital are widely dispersed. John Rawls, political philosophy’s most famous property-owning democrat, argued that property-owning democracy was one of two regime types that best realized his two principles of justice, though he was notoriously vague about how a property-owning democracy’s institutions are meant to realize his principles. To compensate for this deficiency, a number of Rawlsian political philosophers have tried (...) to add institutional and policy content to the idea. While their efforts have advanced the discussion, few have criticized the soundness of these attempts. This article attempts to fill the void. I claim that, in comparison to welfare-state capitalism, property-owning democracy is both prohibitively impractical and unjust on Rawlsian grounds. I first argue that property-owning democracy is economically ineffective. Even granting the assumptions of Rawlsian ideal theory, property-owning democracies generate bad incentives and face severe information problems in comparison to more market-friendly welfare states. Further, in nonideal theory the motivations of political officials and citizens will likely be corrupted by the temptation to abuse the awesome state power at their disposal. Second, I argue that property-owning democracy is unjust relative to welfare-state capitalism. The three principles used to defend property-owning democracy—the difference principle, the principle of fair equality of opportunity and the “political liberty” proviso—do not vindicate property-owning democracy and may even prohibit it. Welfare-state capitalism does much better. (shrink)

Abstract:The epistemic approach to liberalism not only clarifies some of the core features of progress-based arguments for liberty. For two reasons it provides grounds for doubting those arguments’ persuasiveness. The first reason emerges from the epistemic liberal explanation of economic recessions and of social regress as necessary consequences of our enjoying the individual liberty to adapt to our circumstances. Precisely because it secures personal choice with respect to the ends of life and the means to pursue them, liberty must be (...) construed as at best necessary for the imperfect and costly realization of the interest individuals may have in personal advancement. Second, and in revealing the underlying logic of the economic and cultural processes that liberty makes possible, epistemic liberalism shows that it is to the notion of complex adaptation that we must look when seeking to evaluate the overall or aggregate results of liberty. Crucially, however, this means rejecting the notion of progress as fit to perform this ethico-historical evaluative role. (shrink)

An epistemic account of the circumstances of justice allows one to make three important claims about the Humean and Rawlsian ‘standard account’ of those circumstances. First, and contrary to Hume,...