This paper critically explores the ethical dimensions of Behavioral Public Policy (BPP), a domain grounded in the understanding that human rationality is bounded and that this limitation often leads to behaviors deemed irrational. By applying the behavioral lens, which posits that people operate under bounded rationality, BPP aims to craft interventions that safeguard individuals against their biases. However, this approach raises significant ethical concerns, both in the scientific underpinnings of BPP and its application through policy interventions. Accordingly, this paper examines (...) two distinct ethical dimensions of BPP, both as a scientific discipline and through its intervention methodologies. The analysis of the first dimension argues that, viewing bounded rationality as only instrumental in decision-making processes, risks oversimplifying ethical complexities. Such simplification may ignore the moral and value-based rationalities underlying decisions, potentially misattributing instances of immorality and akrasia (the failure to act according to one's judgment) to mere deficiencies in rational thinking. Secondly, the paper examines the impact of BPP on moral behavior and character development, addressing ethical concerns like the evidentiary basis of BPP research, the bounded rationality of choice architects themselves, and the morality of behavior changes induced by policy. Overall, this article provides a much-needed examination of the moral considerations associated with behavioral strategies in public policy and its epistemological foundations, contributing to a more comprehensive understanding of their ethical implications . (shrink)

Why would decision makers adopt heuristics, priors, or in short “habits” that prevent them from optimally using pertinent information—even when such information is freely-available? One answer, Herbert Simon’s “procedural rationality” regards the question invalid: DMs do not, and in fact cannot, process information in an optimal fashion. For Simon, habits are the primitives, where humans are ready to replace them only when they no longer sustain a pregiven “satisficing” goal. An alternative answer, Daniel Kahneman’s “mental economy” regards the question valid: (...) DMs make decisions based on optimization. Kahneman understands optimization not differently from the standard economist’s “bounded rationality.” This might surprise some researchers given that the early Kahneman, along with Tversky, have uncovered biases that appear to suggest that choices depart greatly from rational choices. However, once we consider cognitive cost as part of the constraints, such biases turn out to be occasional failures of habits that are otherwise optimal on average. They are optimal as they save us the cognitive cost of case-by-case deliberation. While Kahneman’s bounded rationality situates him in the neoclassical economics camp, Simon’s procedural rationality echoes Bourdieu’s “habitus” camp. To abridge the fault line of the two camps, this paper proposes a “two problem areas hypothesis.” Along the neoclassical camp, habits satisfy wellbeing, what this paper calls “substantive satisfaction.” Along the Bourdieu camp, habits satisfy belonging, love, and bonding with one’s environment, what this paper calls “transcendental satisfaction.”. (shrink)

The book addresses the broad issue of sustainability of our civilization and seeks to contribute to the ongoing discussion of what many see as its systemic crisis. There is a broad agreement that new creative ideas, initiatives, and solutions are essential for dealing with the current problems. However, despite this recognition, we still know very little about the process of creation and how it works. As a result, our civilization fails to harness the enormous creative potential of humanity. This failure, (...) the book argues, is the main source of our current problems—languishing economy, deteriorating environment, continued violence, the deficit of democracy, and the lack of new fundamental breakthroughs in science. It examines some of these problems and demonstrates the connection between them and our failure to embrace the process of creation. The book offers a perspective that sheds light on the process of creation. It pays special attention to the theoretical contributions of Jean Piaget and the ongoing discussions of knowledge production that help us understand better how the process of creation works. The central argument of the book is that in order to solve our current problems and ensure the sustainability of our civilization well into the future we must embrace the process of creation and make it the central organizing principle of our social practice. Finally, the book provides an outline of the principal changes that the adoption of the new social practice organized around the process of creation will involve. (shrink)

In this paper, I provide a qualified defense of the claim that cognitive biases are not necessarily signs of irrationality, but rather the result of using normative standards that are too narrow. I show that under certain circumstances, behavior that violates traditional norms of rationality can be adaptive. Yet, I express some reservations about the claim that we should replace our traditional normative standards. Furthermore, I throw doubt on the claim that the replacement of normative standards would license optimistic verdicts (...) about human rationality. (shrink)

The value of rational choice theory for the social sciences has long been contested. It is argued here that, in the debate over its role, it is necessary to distinguish between claims that people maximise manifest payoffs, and claims that people maximise their utility. The former version has been falsified. The latter is unfalsifiable, because utility cannot be observed. In principle, utility maximisation can be adapted to fit any form of behaviour, including the behaviour of non-human organisms. Allegedly 'inconsistent' behaviour (...) is also impossible to establish without qualification. This utility-maximising version of rational choice theory has the character of a universal 'explanation' that can be made to 'fit' any set of events. This is a sign of weakness rather than strength. In its excessive quest for generality, utility-maximising rational choice theory fails to focus on the historically and geographically specific features of socio-economic systems. As long as such theory is confined to ahistorical generalities, then it will remain highly limited in dealing with the real world. Instead we have to consider the real social and psychological determinants of human behaviour. (shrink)

We ordinarily think that, keeping all else equal, a life that improves is better than one that declines. However, it has proven challenging to account for such value judgments: some, such as Fred Feldman and Daniel Kahneman, have simply denied that these judgments are rational, while others, such as Douglas Portmore, Michael Slote, and David Velleman, have proposed justifications for the judgments that appear to be incomplete or otherwise problematic. This article identifies problems with existing accounts and suggests a novel (...) alternative theory: what best accounts for our preference for an uphill over a downhill life (and many other episodes) is that losses of momentary value are themselves bad and gains in momentary value are themselves good. (shrink)

An unprocessed risk is a collection of simple lotteries with a reduction-rule that describes the actual-payoff to the decision-maker as a function of realized lottery outcomes. Experiments reveal that the willingness to pay for unprocessed risks is consistently biased toward the payoff-level in the unprocessed representation. The anchoring-to-frame bias in cases of positive framing is significantly weaker than in cases of negative framing suggesting that rational negativity bias may reflect in asymmetric violations of rationality.

Institutional economics and discourse theory stand unconnected next to each other, in spite of the fact that they both ask for the legitimacy of institutions (normative) and the functioning and effectiveness of institutions (positive). Both use as theoretical constructions rational individuals and the concept of consensus for legitimacy. Whereas discourse theory emphasizes the conditions of a legitimate consensus and could thus enable institutional economics to escape the infinite regress of judging a consensus legitimate, institutional economics has a tested social science (...) paradigm (rational choice) of explaining and predicting the functioning of institutions. The article outlines a theoretical synthesis of the two theories by finding points in common and possibilities of fruitful combinations concerning the problem of legitimacy, institutional design and effectiveness of legal norms. Key Words: consensus • discourse theory • effectiveness of legal rules • institutional design • legitimacy • new institutional economics. (shrink)

This essay criticizes the proposal recently defended by a number of prominent economists that welfare economics be redirected away from the satisfaction of people's preferences and toward making people happy instead. Although information about happiness may sometimes be of use, the notion of happiness is sufficiently ambiguous and the objections to identifying welfare with happiness are sufficiently serious that welfare economists are better off using preference satisfaction as a measure of welfare. The essay also examines and criticizes the position associated (...) with Daniel Kahneman and a number of co-authors that takes welfare to be ‘objective happiness’ – that is, the sum of momentary pleasures. (shrink)

Institutional economics and discourse theory stand unconnected next to each other, in spite of the fact that they both ask for the legitimacy of institutions (normative) and the functioning and effectiveness of institutions (positive). Both use as theoretical constructions rational individuals and the concept of consensus for legitimacy. Whereas discourse theory emphasizes the conditions of a legitimate consensus and could thus enable institutional economics to escape the infinite regress of judging a consensus legitimate, institutional economics has a tested social science (...) paradigm (rational choice) of explaining and predicting the functioning of institutions. The article outlines a theoretical synthesis of the two theories by finding points in common and possibilities of fruitful combinations concerning the problem of legitimacy, institutional design and effectiveness of legal norms. (shrink)

The cognitive critique of the goals and desires that are input into the implicit calculations that result in instrumental rationality is one aspect of what has been termed broad rationality (Elster, 1983). This cognitive critique involves, among other things, the search for rational integration (Nozick, 1993)—that is, consistency between first-order and second-order preferences. Forming a second-order preference involves metarepresentational abilities made possible by mental decoupling operations. However, these decoupling abilities are separable from the motive that initiates the cognitive critique itself. (...) I argue that Velleman (1992) has identified that motive (“the desire to act in accordance with reasons”), and that it might be operationalisable as a thinking disposition at a very superordinate cognitive level. This thinking disposition, the Master Rationality Motive, is likely to be of particular importance in explaining individual differences in the tendency to seek rational integration. Preliminary research on related constructs suggests that this construct is measurable. (shrink)

The impact of incidental emotions on decision making is well established. Incidental emotions can be differentiated on several appraisal dimensions, including certainty–uncertainty. The present research investigates the effect of certainty–uncertainty of incidental emotions on hedonic forecasting. The results of four experimental studies indicate that uncertainty-associated incidental emotions, such as fear and hope, compared with certainty emotions, such as anger and happiness, amplify predicted utility. This amplification effect is confirmed for opposite utility types; uncertainty-associated emotions, when compared with their certainty counterparts, (...) lead to an overprediction of positive utilities and to an underprediction of negative utilities. This effect is mediated by the prediction task uncertainty, providing evidence for a carryover process of the incidental emotion. The effect of task uncertainty on predicted utility is, in turn, partly mediated by attention to the task, suggesting that an affective adaptation process lies behind the amplification of forecasts. Taken together, these findings extend the impact of certainty–uncertainty to the context of hedonic forecasting and further corroborate the impact of incidental emotions in judgment and decision making. (shrink)

In this paper, I provide a qualified defense of the claim that cognitive biases are not necessarily signs of irrationality, but rather the result of using normative standards that are too narrow. I show that under certain circumstances, behavior that violates traditional norms of rationality can be adaptive. Yet, I express some reservations about the claim that we should replace our traditional normative standards. Furthermore, I throw doubt on the claim that the replacement of normative standards would license optimistic verdicts (...) about human rationality. (shrink)

Abstract There are two kinds of beliefs. If the ultimate objective is wellbeing (util- ity), the generated beliefs are “practical.” If the ultimate objective is truth, the generated beliefs are “scientific.” This article defends the practical/scientific belief distinction. The proposed distinction has been ignored by standard rational choice theory—as well as by its two major critics, viz., the Tversky/Kahneman program and the Simon/ Gigerenzer program. One ramification of the proposed distinction is clear: agents who make errors with regard to scientific (...) beliefs (e.g., the conjunction fallacy) should not be taken as committing irrationality—because they are most probably engaging the other kind of maximization, the pursuit of wellbeing. (shrink)

In the last seven years, philosophers have discussed the topic of transformative experiences. In this paper, we contribute to a crucial issue that is currently under-researched: transformative experiences' influence on cognitive modelling. We argue that cognitive modelling can be operationalized as affective forecasting, and we compare transformative and non-transformative experiences with respect to the ability of affective forecasting. Our finding is that decision-makers’ performance in cognitively modelling transformative experiences does not systematically differ from decision-makers’ performance in cognitively modelling non-transformative experiences. (...) This claim stands in strict opposition to L.A. Paul’s main argument. (shrink)

ABSTRACTThis study investigates the multimodal strategies used in social marketing to emotionally manipulate and persuade children and their parents to adopt healthier lifestyles. The UK government's anti-obesity ‘Change4Life’ campaign is an example of the increasing reliance on ‘nudge’ tactics in public policy. This approach seeks to develop a range of intervention strategies, inspired by behavioural psychology, in order to change people's behaviours without them necessarily recognising this has happened. I argue it is a form of governmentality which uses subtle semiotic (...) techniques to secure voluntary compliance with policy goals. I bring the concepts of biopolitics and governmentality into dialogue with multimodal critical discourse analysis to examine how this is realised in a series of cartoon government adverts. Three intersecting strategies are identified: the representation of lifestyles as delinquent a discourse of risk and threat mobilised through emotional manipulation and a discourse of ‘smarter’ consumerism. The increasing popularity of nudge over the last decade coincides with a sustained programme of fiscal austerity which disproportionately penalises the poor, while food poverty and social inequality have increased. I argue that it helps legitimate and instantiate neoliberal political rationalities by privatising responsibility for public health care. Despite the importance it places on communication strategies, critical scholarship on nudge has not yet investigated the linguistic techniques it uses in practice. This paper addresses that omission with a detailed multimodal analysis of the UK's longest running policy nudge. (shrink)

ABSTRACTThis article scrutinises one of the mainstream views of how one grows into responsible membership of society; the view based on Jürgen Habermas’, Lawrence Kohlberg’s and Jean Piaget’s theories. Habermas praises Kohlberg’s and Piaget’s psychological theories and uses them as empirical sources crucial for his theoretical work. We argue that this view should be revised in light of new empirical findings as Habermas’ Kohlberg’s and Piaget’s view is based on a false understanding of the development and functioning of human reason (...) and morality. We do not, however, defend a view that reduces normative questions to empirical facts. In contrast, we agree with Habermas that in an adequate theory, both philosophical and empirical dimensions have to be taken into account but argue that the empirical research results he has utilized are fallacious in light of current research findings. Finally, we discuss the relevance of our argument for educational theorisation. (shrink)