The Scientific Revolution spawned not just one methodology, but two. We have emphasized Bacon's inductivism at the expense of Galileo's more abstract, sophisticated method of successive approximation, and so have failed to appreciate Galileo's contribution to the ceteris paribus problem in philosophy of science. My purpose here is to help redress this imbalance. I first briefly review the old unsolved problems, and then point out the Baconian basis of ceteris paribus, as this clause is conventionally understood, and its history from (...) Aristotle to twentieth century Positivism. Then I explore Galileo's method of dealing with unwanted impediments, and the more general problem of 'accidents.' I trace his methodology back to Archimedes and forward through the economic theories of Adam Smith (18th century), J. S. Mill (19th) and Milton Friedman (20th). Finally, I point out ways in which I think Galileo's scientific method sheds light on, and provides a partial solution to, the ceteris paribus problem. (shrink)

[Author's summmary, 2020]. Motivation specifically to drink (ingest watery materials) is widely assumed (still) to be innate, i.e. independent of exposure to fluids in contexts and sensory, somatic and/or social effects of their consumption. This comment floats the idea that human infants learn to differentiate textures of low-energy fluids from semi-solid and solid foods after they begin to be weaned from milk as sole drink and food.

F. A. Hayek's realistic economic theory has been replaced by the formalistic use of equlibrium models that bear little resemblance to reality. These models are as serviceable to the right as to the left: they allow the economist either to condemn capitalism for failing to measure up to the model of perfect competition, or to praise capitalism as a utopia of perfect knowledge and rational expectations. Hayek, by contrast, used equilibrium to show that while capitalism is not perfect, it contains (...) error‐correcting institutions that bring it closer to perfection than is intuitively apparent. (shrink)

This paper shows how John R. Commons’ analysis of a firm’s goodwill value gives analytical support to Professor Amartya Sen’s contention (BEQ, 1993) that business ethics makes economic sense. A firm’s market value consists of the value of both tangible and intangible capital, including the goodwill value of ongoing customer relations. If a firm is to defend its goodwill value, it needs to have the protection of the courts and to pursue ethical practices. The courts defend fair competition by giving (...) protection from unethical competitors while the firm defends its reputation with honest dealings.By implication, firms which depend on ongoing customer relations will tend to engage in more ethical business practices than firms which do not. Even a firm which makes a mistake that compromises its product’s safety may reduce the loss of goodwill value over time by admitting the mistake early rather than hiding it.Also by implication, the transition from a command socialist economy to a market economy cannot be made instantaneously since trust, reputation, and these ongoing customer relations-key institutions of market economics-cannot be generated instantaneously. (shrink)

This paper shows how John R. Commons’ analysis of a firm’s goodwill value gives analytical support to Professor Amartya Sen’s contention (BEQ, 1993) that business ethics makes economic sense. A firm’s market value consists of the value of both tangible and intangible capital, including the goodwill value of ongoing customer relations. If a firm is to defend its goodwill value, it needs to have the protection of the courts and to pursue ethical practices. The courts defend fair competition by giving (...) protection from unethical competitors while the firm defends its reputation with honest dealings.By implication, firms which depend on ongoing customer relations will tend to engage in more ethical business practices than firms which do not. Even a firm which makes a mistake that compromises its product’s safety may reduce the loss of goodwill value over time by admitting the mistake early rather than hiding it.Also by implication, the transition from a command socialist economy to a market economy cannot be made instantaneously since trust, reputation, and these ongoing customer relations-key institutions of market economics-cannot be generated instantaneously. (shrink)

Farmers’ markets, often structured as non-profit or cooperative organizations, play a prominent role in emerging alternative food networks of western Canada. The contribution of these social economy organizations to network development may relate, in part, to the process of regional clustering. In this study we explore the nature and significance of farmers’ market clustering in the western Canadian provinces of British Columbia and Alberta, focusing on the possible connection between clustering and a “scaling up” of alternative food networks. Survey and (...) interview results from four regional clusters indicate that in addition to spatial agglomeration, dynamic processes of interaction and knowledge exchange are occurring and are shaped by vendor mobility as well as collaborative and competitive forces. Horizontal and vertical collaborations are resulting in innovative strategies to address challenges of scale, scope, infrastructure, and organizational capacity that are prevalent in alternative food networks. Government support for market clustering has been modest to date but, we argue, could play a more prominent role in facilitating cluster development as part of a broader collaborative strategy involving public, private, and social economy sectors in the scaling up of alternative food networks. (shrink)

From its early origins to the present, the development of mainstream economic theory has taken a direction which has excluded the analysis of human needs as a basis for social policy. The problems associated with this orientation are increasingly recognized both by economists and non-economists. As Sen points out, it is indeed strange for a discipline concerned with the well-being of people to neglect the question of needs. Currently, some writers such as Doyal and Gough, post-Keynesian economists such as Lavoie, (...) and those such as Davis and O'Boyle who work in the newly emerging school of social economics have begun to address the question of human needs, especially in relation to problems of policy assessment and evaluation. The approaches of some development economists who have dealt with similar issues were also instrumental in drawing attention to the significance of the long-neglected concept of needs. (shrink)

This paper traces the intellectual trajectories of the first stand-alone theories of action, understood as both axiologically neutral and quasi-scientific from a methodological point of view. I argue that the rise of action theory of this kind corresponds to a particular moment of dissatisfaction within Western thought, and as such, it tells us far more about the history of philosophy than the subject itself. I conclude by explaining why subsequent failures to provide an acceptable theory of action are not accidental. (...) On the contrary, such failures owe themselves probably to the fact that formulating a theory of action is neither propitious nor useful. Thus, the most valuable lesson we can learn from philosophical desires for a theory of action is that we should take co-action as the starting point in our normative investigations, rather than positing action simpliciter as a problem to solve. That is, we should move away from propounding a theory of action, and instead focus on a paradigm shift, whereby we move away from a representational, towards a co-actional, model of action. (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)

Health economists claim to use market economics combined with the microeconomic concepts of opportunity cost and the margin to advise on priority setting. However, they are advising on setting priorities through a macro-economic analysis using the costs of the supplier, thus prioritising the producer and not the consumer as the dynamic of economic activity. For health economists any contention within priority setting is due to lack of data not their confusion over fundamental concepts.

Dynamics concerns the process of change in variable conditions through time at any level of analysis. Various important issues or topics in stakeholder theory and practice involve consideration of change over time and thus unavoidably involve dynamics. While dynamics has received explicit recognition in stakeholder literature, dynamic analysis remains partly tacit and suffused through the literature. One reason is that dynamics remains difficult to model even in economics. This article provides a basic orientation to stakeholder dynamics as a key conceptual (...) and methodological issue for stakeholder thinking. This article identifies current literature concerning stakeholder dynamics and evaluates future directions in dynamic reasoning that would help build stakeholder theory and improve practice of stakeholder management. Notions of competition, influence strategies, change in stakeholder networks, mindsets, salience or values, learning, creative destruction, long-term sustainability, stakeholder reciprocity, sustainable development, and value creation all embed change and thus time dynamics. Static complexity and heterogeneity across units-of-analysis are not the same as dynamics but do also change over time. Dynamics concerns how change process influences consequences (later in time) in relationship to antecedents (earlier in time). Management copes with change process, as much as with complexity and variation in antecedents and consequences. (shrink)

An influential view of education is that it prepares young people for adult life, usually in the areas of civic engagement, leisure and contemplation. Employment may be a locus for learning some worthwhile skills and knowledge, but it is not itself the possible locus or one of the possible loci of a worthwhile life. This article disputes that view by drawing attention to those aspects of employment that make it potentially an aspect of a worthwhile life. The exercise and development (...) of one's abilities, co-operation with others, self-discovery and the pursuit of excellence are all identified as potential components of a worthwhile life. If such an aspect of life is worth striving for then education should prepare one for it. Objections to this argument are reviewed and ultimately rejected. (shrink)

This essay argues in favor of retaining the positive/normative distinction in economics, in spite of developments in methodology and epistemology that have cast doubt on the possibility of a “value-free” economics. The central claim is that it is worthwhile to distinguish between positive economic analysis and normative judgments, even if economics is viewed as being permeated with ethical values. This argument is presented without trying either to demonstrate that there is a profound epistemological difference between science and ethics or to (...) show that positive science can afford us access to objective reality. (shrink)

This paper identifies and responds to four critiques of democratic contractarianism, as advocated in Democratic Justice and the Social Contract, to be found in this symposium. The first is that, as a contingent practice-dependent account of justice, democratic contractarianism lacks the capacity to explain civic cooperation. The second is that, despite its intentions, Democratic Justice does not lay out an authentic contractarian theory. The third is that the theory is incompatible with our considered judgements about justice. And the fourth is (...) that the ambition of Democratic Justice to use the empirical method to compensate for the failures of hypothetical contract theory fails because all social science needs interpretation. To each of these critiques, replies are offered, drawing attention to the way in which democratic contractarianism exemplifies a logic of social cooperation to mutual advantage that is compatible with justice provided the cooperation emerges from a bargaining situation of roughly equal power. (shrink)

This paper reviews the recent literature on exploitation. It distinguishes between three main species of exploitation theory: teleology-based accounts, respect-based accounts, and freedom-based accounts. It then addresses the implications of each.

The responsibilities of the manager have been examined through several lenses in the business ethics literature: Kantian (Bowie, 1999 ), contractarian (Donaldson and Dunfee, 1999 ), consequentialist (Friedman, 1970 ), and virtue ethics (Solomon, 1992 ), to name just four. This paper explores what the ethical responsibilities of the manager would look like if viewed through an evolutionary lens. Discussion is focused on the impact of evolutionary thinking on the process of moral reasoning, rather than on the sources or the (...) substance of morality. The conclusion is reached that the evolutionary lens supports the view that moral luck plays an important role in how we assign ethical responsibilities. (shrink)

It has been well established in literature that small industry clusters (SICs) have an impressive record of innovation and knowledge transmission. This paper explores the possibilities in this regard in third-world clusters through an empirical study of three SICs in India. The paper first examines the essential reasons for the survival and growth of clusters temporally over centuries. Then, it critically assesses the factors that threaten the clusters at present—some of which, it appears, might actually be fatal for these clusters. (...) And finally, the paper concludes that though an enhancement in capacity to innovate and transfuse knowledge would contribute to the sustenance of these clusters, this cannot happen unless decisive intervention occurs to preserve and sustain the fundamental strengths of these clusters. (shrink)

The present paper builds on the Rawlsian critique of utilitarianism in order to identify the moral implications of Niklas Luhmann’s social systems theory. While Luhmann aptly discerned the pervasive problems of the precarious system–environment relations throughout the modern society, he took moral communication to be person-centered and thus ill-equipped to deal with these problems. At the same time, the Rawlsian possibility of sacrificing fundamental liberties for the sake of economic gains not only exemplifies the Luhmannian precariousness of the relations of (...) the economic system to its societal environment, but also shows this precariousness to be a moral problem. Thus, from the systems-theoretic perspective, the Rawlsian idea of justice denotes the moral dimension of the capacity of the societal environment to carry the economic system. More generally, the proposed complementarity between Rawls and Luhmann allows to see the precariousness of system–environment relations, for any type of social system, as a moral problem. Two implications follow. First, the morally problematic manifestations of the precarious system–environment relations are not limited to the Rawlsian case of the discrimination of the least advantaged groups but rather include a broad range of social costs and damaging effects of business on society and nature. Second, and related, the proposed systems-theoretic perspective explicates the moral value of sustainability of the economic as well as other social systems in their environment, societal and ecological alike. (shrink)

J. S. Mill's role as a transitional figure between classical and egalitarian liberalism can be partly explained by developments in his often unappreciated economic views. Specifically, I argue that Mill's separation of economic production and distribution had an important effect on his political theory. Mill made two distinctions between economic production and the distribution of wealth. I argue that these separations helped lead Mill to abandon the wages-fund doctrine and adopt a more favorable view of organized labor. I also show (...) how Mill's developments impacted later philosophers, economists, and historians. Understanding the relationship between Mill's political theory and economic theory does not only matter for Mill scholarship, however. Contemporary philosophers often ignore the economic views of their predecessors. I argue that paying insufficient attention to historical political philosophers' economic ideas obscures significant motivations for their political views. (shrink)

We present experimental data on a simple market game. Several solution concepts from cooperative game theory are applied to predict the observed payoff distributions. Notably, a recently introduced solution concept meant to capture the influence of outside options on the payoff distribution within groups fares better than most other solution concepts under consideration. Our results shed some light on the effects of scarcity relations on markets on bargaining outcomes within negotiating dyads.

Liberals have often been attracted by contractarian modes of argument— and with good reason. Any system of social organization requires that some constraints be imposed on individuals' freedom of action; it is a central problem for any liberal political theory to show which constraints can be justified, and which cannot. A contractarian justification works by showing that the constraints in question can be understood as if they were the product of an agreement, voluntarily entered into by every member of society. (...) Thus, no one is required to give up his freedom for someone else's benefit, or in the pursuit of someone else's conception of the social good. (shrink)

Neural activity and social activity share close parallels, particularly the fact that spontaneous adaptations are paramount in both realms. Environmental pressures require organisms and societies to adapt to new and uncertain situations. Adaptations create, respectively, stronger neural and social networks that may, in turn, make the system more resilient to future uncertainties—but only if the adaptations are beneficial to the system.

In this paper it is argued that the modern economy, as it transforms itself into a knowledge-based economy, loses much of the immunity from societal influences it once enjoyed, at least in advanced societies. This implies that the boundaries of the economy as a social system become more porous and fluid. Among the traffic that increasingly moves across the system-specific boundaries of the economy, from the opposite direction as it were, are cultural practices and beliefs that were heretofore perceived as (...) alien to taken-for-granted conventions of economic conduct and the kinds of preferences immanent within the economic system. The enlargement of the economy is examined with reference to biotechnological products and processes. I will call these changes the "moralization" or "de-commercialization" of the production and consumption process. The moralization of the market and of production ultimately depends on the growing role of knowledge in economic affairs as well as the exceptional rise in affluence and, in its course, consumer sovereignty. (shrink)

In the ‘Introduction’ to Capitalism and Freedom, Friedman's stated intentions are to: establish the role of competitive capitalism as a system of economic freedom and a necessary condition for political freedom; indicate the proper role of government in a free society; and return the term ‘liberal’ ‘… to its original sense – as the doctrines pertaining to a free man’. In fact, Friedman accomplishes none of these things. This essay has three distinct, though related, objectives: first, to compare Friedman's position (...) with the liberal alternative; second, to show why Friedman's position is more properly regarded as libertarian than liberal; and third, to assess the quality of Friedman's argument in its own right. My purpose is to demonstrate that Friedman overlooks the important liberal insight that the unrestricted accumulation of private propety may limit rather than promote individual freedom. This omission is crucial. Not only does it divorce Friedman's conception from liberalism, it also vitiates his case for economic freedom as a necessary condition for political freedom. (shrink)