This essay is part of an attempt to reconcile two extreme views in economics: the (neglected) subjective, apriorist approach and the (standard) objective, scientific (i.e., falsifiable) approach. The Austrian subjective view of value, building on Carl Menger’s theory of value, was developed into a theory of economics as being entirely an a priori theory of action. This probably finds its most extreme statement in Ludwig von Mises’ Human Action (1949). In contrast, the standard economic view has developed into making falsifiable (...) predictions about economic phenomena whereby the truth of the assumptions, especially about economic agents, is relatively unimportant: predictive fecundity is all. This finds an extreme statement in Milton Friedman’s introductory essay in his Essays in Positive Economics (1953). However, many economists fall somewhere between the two extremes, such as McKenzie and Tullock (1978). (shrink)

Eudaemonism is the common structure of the family of theories in which the central moral conception is eudaemonia , understood as "living well" or "having a good life." In its best form, the virtues are understood as constitutive and therefore essential means to achieving or having such a life. What I seek to do is to lay the groundwork for an approach to eudaemonism grounded in practical reason, and especially in instrumental reasoning, rather than in natural teleology. In the first (...) chapter, I argue that an approach based in natural teleology will not work. In the second, the claims of decision theory to be an adequate formal representation of instrumental reasoning are examined and found wanting. In the third, I develop an account of ordinary instrumental reasoning. In the fourth, I discuss the structure of eudaemonism, with the aim of showing that there is an intelligible and attractive doctrine that can be disentangled from the natural teleology. In the fifth, I sketch an argument showing that instrumental reasoning, as explicated in the third chapter, can bear on the selection of final and ultimate ends, and that it is plausible that the instrumental approach to moral theory that I am urging yields conclusions with a eudaemonistic structure. I also indicate directions for further development and exploration. (shrink)

Discussions of Karl Popper's falsificationist philosophy of science appear regularly in the recent literature on economic methodology. In this literature, there seem to be two fundamental points of agreement about Popper. First, most economists take Popper's falsificationist method of bold conjecture and severe test to be the correct characterization of scientific conduct in the physical sciences. Second, most economists admit that economic theory fails miserably when judged by these same falsificationist standards. As Latsis states, “the development of economic analysis would (...) look a dismal affair through falsificationist spectacles.”. (shrink)

ABSTRACT: The economists of the Austrian School count among the most consistent supporters of methodological individualism, but they were for the most part strongly opposed to clearly anti-holist trends such as constructivism, reductionism, and positivism. This article discusses why the sort of methodological individualism defended by the Austrians could not, for interconnected reasons, be rendered compatible with any one of these philosophical trends. The manner in which the Austrians managed to reconcile their analysis of economic mechanisms with a strictly subjectivist (...) approach is especially considered. The discussion also underscores some ambiguous dimensions of the debate between holism and individualism. (shrink)

Methodological individualism has a long, successful, and controversial track record in the social sciences. Its record in ecology is much shorter but proving as successful and controversial with so-called individual-based models. Distinctions and debates about methodological individualism in social sciences clarify the commitments of this general, individualistic approach to modeling ecological phenomena and show that there is a lot recommending it. In particular, a representational priority on individual organisms yields a cogent albeit deflationary account of ecological emergence and helps reveal (...) how quite disparate models and theories in ecology might be unified. (shrink)

Research into the proper mission of business falls within the context of theoretical and applied ethics. And ethics is fast becoming a part of required business school curricula. However, while business ethics research occasionally appears in high‐profile venues, it does not yet enjoy a regular place within any top management journal. I offer a partial explanation of this paradox and suggestions for resolving it. I begin by discussing the standard conception of human nature given by neoclassical economics as disseminated in (...) business schools; showing it is a significant obstacle to an accurate conception of ethics and how this limits consideration of sustainability and corporate social responsibility. I then examine the scope of the top management journals, showing how their empirical and descriptive focus leaves little room for ethics, which is an essentially conceptual and prescriptive discipline. Finally, I suggest avenues for research into the ethical mission of business, generally—and sustainability and CSR, in particular—by appeal to the precepts of Harvard Business School’s Master’s in Business Administration ethics oath modeled on the medical and legal professions. (shrink)

Les représentants de l'École autrichienne sont ici mis sous la même bannière pour autant seulement qu'ils ont été unanimes à revendiquer pour les postulats de l'économie pure, les «lois exactes» de la théorie économique, c'est-à-dire de la théorie marginale de l'utilité, un statut particulier en ce sens qu'ils tenaient pour impossible, voire absurde ou simplement inutile de soumettre les postulats en cause à des tests empiriques. L'apriorisme dont ils se réclament, fait à juste titre la marque de commerce de l'École (...) marginaliste autrichienne; Menger en a fourni les principes, von Mises la justification, et Rothbard s'est occupé de propager la doctrine de l'autre côté de l'Atlantique. (shrink)

Recent years have witnessed an increasing number of attempts to reconstruct Marxian theory in forms that can be assessed by reference to currently received standards in various disciplines. The work has even been said to establish a new paradigm: “analytical Marxism.” One doesn't have to endorse this claim to recognize a good deal of merit in the work. Through creative application of state-of-the-art methods to traditional Marxian issues, researchers have promoted productive cross-fertilization with non-Marxian programs and have revealed many problems (...) that must be resolved for fruitful development of Marxian theory. Marx's work can be relevant to today's problems only if it is examined from vantage points provided by subsequent scientific and philosophical achievements. Moreover, critical engagement with the best science of the day has been an essential part of the Marxian theoretical project from the beginning. (shrink)

This book offers a distinctive treatment of Hayek's ideas as a "research program". It presents a detailed account of aspects of Hayek's intellectual development and of problems that arise within his work, and then offers some broad suggestions as to ways in which the program initiated in his work might be developed further. The book discusses how Popper and Lakatos' ideas about "research programs" might be applied within political theory. There then follows a distinctive presentation of Hayek's intellectual development up (...) to The Road to Serfdom, together with critical engagement with his later ideas. The discussion draws on a full range of his writings, makes use of some neglected earlier work on social theory and law, and also draws on archival material. This book should appeal to anyone with an interest in Hayek's work, as well as to those with a concern for twentieth century intellectual history. (shrink)

This paper contributes to the recently renewed debate over methodological individualism (MI) by carefully sorting out various individualist claims and by making use of recent work on reduction and explanation outside the social sciences. My major focus is on individualist claims about reduction and explanation. I argue that reductionist versions of MI fail for much the same reasons that mental predicates cannot be reduced to physical predicates and that attempts to establish reducibility by weakening the requirements for reduction also fail. (...) I consider and reject a number of explanatory theses, among them the claims that any adequate theory must refer only to individuals and that individualist theory suffices to explain fully. The latter claim, I argue, is not entailed by the supervenience of social facts on individual facts. Lastly, I argue that there is one individualist restriction on explanation which is far more plausible and significant than one would initially suspect. (shrink)

Theories of rational decision making often abstract away from computational and other resource limitations faced by real agents. An alternative approach known as resource rationality puts such matters front and center, grounding choice and decision in the rational use of finite resources. Anticipated by earlier work in economics and in computer science, this approach has recently seen rapid development and application in the cognitive sciences. Here, the theory of rationality plays a dual role, both as a framework for normative assessment (...) and as a source of scientific hypotheses about how mental processes in fact work. The latter project, often called rational analysis, depends for its success on a fine-grained characterization of the computational problem facing a decision maker, which may in turn depend on realistic assumptions about what the relevant agent is like. As a consequence, resource rationality involves a delicate, but often fruitful interplay between the normative and the descriptive. (shrink)

The article replies to the five comments to Political Self-Deception, from the more philosophical and epistemic remarks to the more political and historical ones. In the end, it summarizes the main points of the book as suggested by the discussion with the five comments.

The concept of Intentional Action is at the core of Praxeology, as developed by the Austrian economist Ludwig von Mises. Under this unique approach, defined as the science of human action and designed to study the field of the social sciences, Mises create “action axiom”: the contention that every acting man more satisfactory state of affairs for a Austrian scholar is able to derive the fundament human action; such as value, scale of value, scarcity, abundance, profit, loss, uncertainty and causality, (...) among others. This paper intends to present the praxeological perspective on intentional action and its epistemologic implications; it also attempts to answer objections to this thesis. (shrink)

Discussions of Karl Popper's falsificationist philosophy of science appear regularly in the recent literature on economic methodology. In this literature, there seem to be two fundamental points of agreement about Popper. First, most economists take Popper's falsificationist method of bold conjecture and severe test to be the correct characterization of scientific conduct in the physical sciences. Second, most economists admit that economic theory fails miserably when judged by these same falsificationist standards. As Latsis states, “the development of economic analysis would (...) look a dismal affair through falsificationist spectacles.”. (shrink)

“Virtue jurisprudence” is a normative and explanatory theory of law that utilises the resources of virtue ethics to answer the central questions of legal theory. The main focus of this essay is the development of a virtue–centred theory of judging. The exposition of the theory begins with exploration of defects in judicial character, such as corruption and incompetence. Next, an account of judicial virtue is introduced. This includes judicial wisdom, a form of phronesis, or sound practical judgement. A virtue–centred account (...) of justice is defended against the argument that theories of fairness are prior to theories of justice. The centrality of virtue as a character trait can be drawn out by analysing the virtue of justice into constituent elements. These include judicial impartiality (even–handed sympathy for those affected by adjudication) and judicial integrity (respect for the law and concern for its coherence). The essay argues that a virtue–centred theory accounts for the role that virtuous practical judgement plays in the application of rules to particular fact situations. Moreover, it contends that a virtue–centred theory of judging can best account for the phenomenon of lawful judicial disagreement. Finally, a virtue–centred approach best accounts for the practice of equity, departure from the rules based on the judge’s appreciation of the particular characteristics of individual fact situations. [ABSTRACT FROM AUTHOR]. (shrink)

I argue that a certain version of physicalism, which is viewed by both its admirers and its detractors as non-reductionist, in fact entails two claims which, though not reductionist in the currently most popular sense of 'reductionist', conform to the spirit of reductionism sufficiently closely to compromise its claim to be a comprehensively non-reductionist version of physicalism. Putatively non-reductionist versions of physicalism in general, I suggest, are likely to be non-reductionist only in some senses, but not in others, and hence (...) to disappoint those who wish to be physicalists but still to remain soft and cuddly non-reductionists. (shrink)

In this paper we analyse the concept of coerced exchange (and partly of voluntary exchange inasmuch as the absence of coercion is its necessary condition), which is of utmost importance to economic theory in general and to the Austrian School of Economics in particular. The subject matter literature normally assumes that a coerced action occurs under threat. Threats in turn can be studied from the perspective of speech act theory, which is concerned with the speaker’s intentions. Ultimately, our goal is (...) to provide a descriptive (i.e. non-moralized) definitions of threat and coercion, based on the analysis of the coercer’s intentions. If successful, we would be in a position to present such an account of coerced and voluntary exchanges that is compatible with both speech act theory and the Austrian methodology. Although we focus on the Austrian School of Economics, we believe that our investigations might impact on economic theory in general. We also criticize a rights-based account of coercion employed in the research practice of some neo-Austrians and based on the libertarian ethic of property rights. (shrink)

Current debates between behavioural and orthodox economists indicate that the role and epistemological status of first principles is a particularly pressing problem in economics. As an alleged paragon of extreme apriorism, the methodology of Austrian economics in Mises’ tradition is often dismissed as untenable in the light of modern philosophy. In particular, the defence of the so-called fundamental axiom of praxeology—“Man acts.”—by means of pure intuition is almost unanimously rejected. However, in recently resurfacing debates, the extremeness of Mises’ epistemological position (...) has been called into question. Rather than directly engaging in these exegetical discussions, this paper aims to substantiate the possibility and plausibility of conventionalist defences of praxeology per se. The proposed shift includes settling for an analytic fundamental axiom and acknowledging the prima facie tenability of other research programs than praxeology. Since conventionalist praxeology is only moderately aprioristic, mainstream economists and philosophers might be more likely to engage in fruitful discussions with those Austrian scholars who elaborate pragmatic arguments for praxeology instead of invoking pure intuition. (shrink)

More than many other Austrians, Mises tried to found aprioristic methodology on a well defined and developed epistemology. Although references to Kant are scattered rather unsystematically throughout his works, he nevertheless used an unequivocal Kantian terminology. He explicitly defended the existence of ‘a priori knowledge’, ‘synthetic a priori propositions’, ‘the category of action’, and so forth.

The purpose of this article is to argue in favor of a private employer’s right to discriminate amongst job applicants on any basis he chooses, and this certainly includes unlawful characteristics such as race, sex, national origin, sexual preference, religion, etc. John Locke and many after him have argued that people have natural rights to life, liberty, and property or the pursuit of happiness. In this view, law should be confined to protecting these rights and be limited to prohibiting other (...) people from transgressing those rights. The law should not hinder an employer’s ability to discriminate, any more than it should compel people to marry against their wishes. These laws generally emerge from a moral perspective that people think should be imposed on everyone else. But those who don’t welcome those morals are in effect being coerced to abide by them against their will; this is unethical. Finally, it will be argued that the free market has mechanisms by which discrimination will, be rendered powerless to harm its victims. (shrink)

The paper analyzes the two types of self-deception, usually labeled straight and twisted self-deception. In straight cases the self-deceptive belief coincides with the subject’s desire. In twisted cases, by contrast, the self-deceptive belief opposes the subject’s desire as in the example of Othello’s conviction of Desdemona’s infidelity. Are both these contrasting types of deceptive beliefs cases of SD? The argument of this paper shall answer this question in the positive, yet in different way from the unitary explanation of straight and (...) twisted SD proposed by Alfred Mele. The causal account of SD claims to provide a unitary and simple explanation for both straight and twisted SD, and considers such a unitary explanation as a specific virtue of the causal view. Within the same causal model, the difference between straight and twisted self-deception is explained by a difference in the motivational state that in twisted cases is dominated by emotions. The paper will critically examine this claim, and advance an alternative explanation based on a different view of self-deception where emotions play a role alongside wishes both in straight and in twisted case. (shrink)

Austrian economics - the school of thought associated with Carl Menger, Frederick von Weiser, Eugen von Bohm-Bawerk, and in this century, Ludwig von Mises, Friedrich Hayek, Murray N. Rothbard, and Israel Kirzner - is based on a framework of methodological principles and assumptions much at variance with those of traditional or 'orthodox' economists. Robert Nozick, in his 'On Austrian Methodology', focuses attention on the most fundamental features of this framework, and subjects them to a thoroughgoing and scathing analysis. Singled out (...) for detailed and critical review are: (1) the praxeological concepts of methodological individualism; (2) the claim that economics is an a priori science of human action; (3) the nature of preference and its relation to choice and action; and (4) the assumptions of time-preference theory. Although Nozick does not consider Austrian views on business cycles, market process analysis, the coordinative and informational effects of the price system, competition, and several other fundamental aspects of praxeology, his criticism strikes at the very root of the praxeological school. This paper attempts to refute each criticism made of the praxeological school by Nozick on a point-by-point basis. It thus follows the same pattern as the original paper, and scrutinizes in detail the arguments made by its author. (shrink)

The economists of the Austrian School count among the most consistent supporters of methodological individualism, but they were for the most part strongly opposed to clearly anti-holist trends such as constructivism, reductionism, and positivism. This article discusses why the sort of methodological individualism defended by the Austrians could not, for interconnected reasons, be rendered compatible with any one of these philosophical trends. The manner in which the Austrians managed to reconcile their analysis of economic mechanisms with a strictly subjectivist approach (...) is especially considered. The discussion also underscores some ambiguous dimensions of the debate between holism and individualism. (shrink)