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The phenomenon of weakness of will – not doing what we perceive as the best action – is not recognized by neoclassical economics due to the axiomatic assumptions of the revealed preference theory (RPT) that people do what is best for them. However, present bias shows that people have different preferences over time. As they cannot be compared by the utility measurements, economists need to normatively decide between selves (short- versus long-term preferences). A problem is that neoclassical economists perceive RPT (...) |
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Efficient markets are alienating if they inhibit us from recognizably caring about one another in our productive activities. I argue that efficient market behaviour is both exclusionary and fetishistic. As exclusionary, the efficient marketeer cannot manifest care alongside their market behaviour. As fetishistic, the efficient marketeer cannot manifest care in their market behaviour. The conjunction entails that efficient market behavior inhibits care. It doesn’t follow that efficient market behavior is vicious: individuals might justifiably commit to efficiency because doing so serves (...) |
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This paper defends the view that we have special relationship duties that do not derive from our moral duties. Our special relationship duties, I argue, are grounded in what I call close relationships. Sharing a close relationship with another person, I suggest, requires that both people conceive of themselves as being motivated to promote the other’s interests. So, staying true to oneself demands being committed to promoting the interests of those with whom we share a close relationship. Finally, I show (...) |
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The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) |
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Many fields (social choice, welfare economics, recommender systems) assume people express what benefits them via their 'revealed preferences'. Revealed preferences have well-documented problems when used this way, but are hard to displace in these fields because, as an information source, they are simple, universally applicable, robust, and high-resolution. In order to compete, other information sources (about participants' values, capabilities and functionings, etc) would need to match this. I present a conception of values as *attention policies resulting from constitutive judgements*, and (...) |
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This chapter describes a philosophical approach to theorizing justice, mapping out some main strands of the tradition leading up to contemporary political philosophy. We first briefly discuss what distinguishes a philosophical approach to justice from other possible approaches to justice, by explaining the normative focus of philosophical theories of justice – that is, a focus on questions not about how things actually are, but about how things ought to be. Next, we explain what sorts of methods philosophers use to justify (...) |
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This chapter describes how philosophical theorizing about justice can be connected with empirical research in the social sciences. We begin by drawing on some received distinctions between ideal and non-ideal approaches to theorizing justice along several different dimensions, showing how non-ideal approaches are needed to address normative aspects of real-world problems and to provide practical guidance. We argue that there are advantages to a transitional approach to justice focusing on manifest injustices, including the fact that it enables us to set (...) |
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“Das Adam Smith Problem” is the name given by eighteenth-century German scholars to the question of how to reconcile the role of self-interest in the Wealth of Nations with Smith’s advocacy of sympathy in Theory of Moral Sentiments. As the discipline of economics developed, it focused on the interaction of selfish agents, pursuing their private interests. However, behavioral economists have rediscovered the existence and importance of multiple motivations, and a new Das Adam Smith Problem has arisen, of how to accommodate (...) |
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Constructivist technology studies have often cast government as one “social group” among many, reflecting a liberal pluralist view of politics. This article argues, in contrast, that due to the conceptions of citizenship conveyed by policy designs, governments have a special role to play in the shaping of new technologies. This argument is illustrated in the case of the controversial 1996 decision by the California Air Resources Board to significantly revise its electric vehicle program. The article shows that the board’s decision (...) |
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The goal of this article is to show that instrumental rationality and utility that have been used in economics for many years does not work well. What is presented in the article is how significant the influence of utilitarianism has been on economics and why the economists get rid of humans’ goals and motivations. It is shown in the article that the human who decides in present is absolutely different from the human who decides over time. Many economists neglected this (...) |
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The Nash counterfactual considers the question: what would happen were I to change my behaviour assuming no one else does. By contrast, the Kantian counterfactual considers the question: what would happen were everyone to deviate from some behaviour. We present a model that endogenizes the decision to engage in this type of Kantian reasoning. Autonomous agents using this moral framework receive psychic payoffs equivalent to the cooperate-cooperate payoff in Prisoner’s Dilemma regardless of the other player’s action. Moreover, if both interacting (...) |
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Metalogic is an open-ended cognitive, formal methodology pertaining to semantics and information processing. The language that mathematizes metalogic is known as metalanguage and deals with metafunctions purely by extension on patterns. A metalogical process involves an effective enrichment in knowledge as logical statements, and, since human cognition is an inherently logic–based representation of knowledge, a metalogical process will always be aimed at developing the scope of cognition by exploring possible cognitive implications reflected on successive levels of abstraction. Indeed, it is (...) |
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Consent can only be voluntary, freely given and uncoerced. Can this legal adult standard also apply to children? High-risk surgery is seldom a wanted choice, but compared with the dangers of the un... |
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European Journal of Philosophy, EarlyView. |
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Given the endowment effect, the role of attention in decision-making, and the framing effect, most behavioral economists agree that it would be a mistake to accept the satisfaction of revealed preferences as the normative criterion of choice. Some have suggested that what makes agents better off is not the satisfaction of revealed preferences, but ‘true’ preferences, which may not always be observed through choice. While such preferences may appear to be an improvement over revealed preferences, some philosophers of economics have (...) |
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As the gap between the world’s rich and poor grows wider and the limitations of institutional solutions such as foreign aid continue to be exposed, students of development are shifting their focus toward individualistic business-based solutions that seek to draw members of marginalized communities into the global marketplace. This focus on the individual, however, raises three interconnected issues: it privileges a view of the human person as individualistic versus relational, it proposes isolated solutions that are not scalable, and it can (...) |
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Este artículo analiza las concepciones pluralista, deliberativa y participativa sobre la democracia que centran los debates actuales sobre el tema. Son modelos que parten de presupuestos distintos y llegan a diferentes conclusiones. Se analiza la noción de racionalidad y razonabilidad de los individuos. Y también, el concepto de egoísmo y la posibilidad del altruismo y el tránsito de la autonomía individual al autogobierno colectivo. Finalmente se propone la teoría de la voluntad y la teoría del interés para llegar a algunas (...) |
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En este trabajo respondo una objeción a la tesis de que la teoría de Rawls debe atender problemas relacionados a la injusticia histórica. Esta objeción sostiene que dicha teoría está justificada en no considerar problemas de injusticia histórica debido a su supuesto carácter exclusivamente prospectivo. La objeción tiene dos presentaciones diferentes. Primero, como la idea de que hay razones internas a la propia teoría de Rawls que justifican dicho carácter exclusivamente prospectivo —tales como el problema de elección modelado en la (...) |
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When acting in social contexts, we are often able to voluntarily coordinate our choices with one another. It has been suggested that this ability relies on the adoption of preferences that transcend those of the individuals involved in the social interaction. Conditional game theory provides a formal framework that facilitates the study of coordinated rational choice in a way that disentangles the concepts of individual preference and group agency. We argue that these concepts are complementary: individual preferences are formed in (...) |
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In their recently published book Nudge (2008) Richard H. Thaler and Cass R. Sunstein (T&S) defend a position labelled as ‘libertarian paternalism’. Their thinking appeals to both the right and the left of the political spectrum, as evidenced by the bedfellows they keep on either side of the Atlantic. In the US, they have advised Barack Obama, while, in the UK, they were welcomed with open arms by the David Cameron's camp (Chakrabortty 2008). I will consider the following questions. What (...) |
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The study’s main thesis is that respect for some moral values is a condition for methodologically rational decisions, namely, decisions which do not satisfy the condition are either not methodologically rational at all, or not fully rational. The paper shows supporting arguments for the thesis in terms of the philosophical theories by Aristotle, Immanuel Kant, Tadeusz Kotarbiński, Max Weber, Jean-Paul Sartre and some other thinkers. Their presentation undergoes phenomenological analysis of the phenomenon of decision making. |
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(Expected) adverse effects of the ‘ICT Revolution’ on work and opportunities for individuals to use and develop their capacities give a new impetus to the debate on the societal implications of technology and raise questions regarding the ‘responsibility’ of research and innovation (RRI) and the possibility of achieving ‘inclusive and sustainable society’. However, missing in this debate is an examination of a possible conflict between the quest for ‘inclusive and sustainable society’ and conventional economic principles guiding capital allocation (including the (...) |
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In this study I analyse the performance of a democratic decision-making rule: the weighted majority rule. It assigns to each voter a number of votes that is proportional to her stakes in the decision. It has been shown that, for collective decisions with two options, the weighted majority rule in combination with self-interested voters maximises the common good when the latter is understood in terms of either the sum-total or prioritarian sum of the voters’ well-being. The main result of my (...) |
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El presente trabajo desarrolla varios aspectos epistemológicos de la Teoría de la Elección Racional. Se da una perspectiva histórica de la tradición científica occidental en la cual se inscribe la misma, ligándose profundamente a la epistemología idealista y racionalista. Se incluye también un repaso a la revisión crítica de la "racionalidad limitada" opuesta a la TER y de algunos elementos de estudios en psicología aplicados a la economía que contradicen los supuestos de la racionalidad sustantiva. Por último, se hace un (...) |
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For centuries, several disciplines have tried to tackle the topic of how legitimate it is to use violence in order to solve social problems. One of the most recent interdisciplinary approaches (and one of the most successful in present-day Latin America) is the so-called “Ethics of Liberation,” designed by Enrique Dussel. Based on the Theology of Liberation, this theory goes beyond the limits of theology as a discipline and pleads for three ethical criteria that every political revolution must fulfill to (...) |
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Over the last two decades, the capabilities approach has become an increasingly influential theory of development. It conceptualises human wellbeing in terms of an individual's ability to achieve functionings we have reason to value. In contrast, the African ethic of ubuntu views human flourishing as the propensity to pursue relations of fellowship with others, such that relationships have fundamental value. These two theoretical perspectives seem to be in tension with each other; while the capabilities approach focuses on individuals as the (...) |
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Egoism and altruism are unequal contenders in the explanation of human behaviour. While egoism tends to be viewed as natural and unproblematic, altruism has always been treated with suspicion, and it has often been argued that apparent cases of altruistic behaviour might really just be some special form of egoism. The reason for this is that egoism fits into our usual theoretical views of human behaviour in a way that altruism does not. This is true on the biological level, where (...) |
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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 (...) |
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It is time to transcend the arid debate between rationality and ir-, a-, or non-rationality as our basic assumption about human agency.1 There are powerful arguments and extensive evidence both for and against the rationality assumption, with heavily defended entrenchments on both sides. Managers and management scholars continually make at least tacit assumptions about how they expect others to behave. If only we could have in both theory and practice the coherence and precision of rational models as well as the (...) |
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Sartre’s intention in the Critique of Dialectical Reason is to establish the heuristic value of the dialectical method when applied to the social sciences. Toward this end, he furnishes an account of how, on the basis of natural needs, rational choices, burgeoning social ensembles, natural and social contingencies and unintended consequences, human beings make their history. I shall argue that his dialectical method, especially when modified, opens up interesting possibilities for clarifying the two most important and enduring meta-issues in the (...) |
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Like American politics, the academic debate over justice is polarized, with almost all theories of justice falling within one of two traditions: egalitarianism and libertarianism. This book provides an alternative to the partisan standoff by focusing not on equality or liberty, but on the idea that we should give people the things that they deserve. Mulligan argues that a just society is a meritocracy, in which equal opportunity prevails and social goods are distributed strictly on the basis of merit. That (...) |
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Public decisions concerning large projects with detrimental environmental or heritage impacts involve value conflicts which stem from the diverse interests and variety of ways of evaluating the costs and benefits of such projects. They are also framed by institutionalised procedures and practices which favour certain concerns to the detriment of others. This paper aims to contribute towards a better understanding of how these procedures and practices, namely decision support tools such as the Environmental Impact Assessment (EIA), tend to shape public (...) |
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La naturaleza interdisciplinar del "enfoque de las capacidades" ha hecho que su estudio se encuentre diseminado en un amplio espectro de revistas. Así el CA se ha asentado en las áreas de la filosofía política o la economía del desarrollo, y ha ampliado su alcance al ser utilizado como marco teórico para la creación de indicadores sobre la privación, la calidad de vida o la salud, o bien para abordar las cuestiones de la educación superior o el impacto de la (...) |
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The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised (...) |
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Trust can be thought of as a three place relation: A trusts B to do X. Trustworthiness has two components: competence (does the trustee have the relevant skills, knowledge and abilities to do X?) and willingness (is the trustee intending or aiming to do X?). This chapter is about the willingness component, and the different motivations that a trustee may have for fulfilling trust. The standard assumption in economics is that agents are self-regarding, maximizing their own consumption of goods and (...) |
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Trust is critical to the development and maintenance of collaborative and cohesive relationships in societies, broadly, and in organizations, specifically. At the same time, trust is highly dependent on the social context in which it occurs. Unfortunately, existing research involving trust remains somewhat limited to a particular set of developed economies, providing a window to explore a culture's stage of economic development as a key contextual determinant of trust within organizations. In this article, we review the state of the scholarship (...) |
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Naturalism, as Binmore understands the term, is characterized by a scientific stance on moral behavior. Binmore claims that a naturalistic account of morality necessarily goes with the conviction “that only hypothetical imperatives make any sense”. In this paper it is argued that this claim is mistaken. First, as Hume’s theory of promising shows, naturalism in the sense of Binmore is very well compatible with acknowledging the importance of categorical imperatives in moral practice. Moreover, second, if Binmore’s own theory of moral (...) |
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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 (...) |
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When we ask a decision maker to express her preferences, it is typically assumed that we are eliciting a pre-existing set of preferences. However, empirical research has suggested that our preferences are often constructed on the fly for the decision problem at hand. This paper explores the ramifications of this empirical research for our understanding of instrumental rationality. First, I argue that these results pose serious challenges for the traditional decision-theoretic view of instrumental rationality, which demands global coherence amongst all (...) |
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In “The Irrelevance of the Diachronic Money-Pump Argument for Acyclicity,” The Journal of Philosophy CX, 8 (August 2013), 460-464, Johan E. Gustafsson contends that if Davidson, McKinsey and Suppes’ diachronic money-pump argument in their "Outlines of a Formal Theory of Value, I," Philosophy of Science 22 (1955), 140-160 is valid, so is the synchronic argument Gustafsson himself offers. He concludes that the latter renders irrelevant diachronic choice considerations in general, and the two best-known diachronic solutions to the money pump problem (...) |
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Recent neuroeconomic studies challenge the conventional economic logic of behavior. After an introduction to some starting points of brain research in ‘classical’ economics we discuss the final and contingent causes of rational and irrational behavior in neuroeconomics and standard economics and present the concept of expanded rationality models (ERM) which imports neuroeconomic elements like emotions, beliefs and neuroscientific constraints and exports improved testable predictions. The typical structure of neuroeconomic proof of economic models and the imprecise neuroscientific measurement let us suggest (...) |
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After a short description of the economic model of behaviour it is shown that there are two reasons why problems arise if this model is applied to political processes and decisions. First, such decisions are often ‘low cost’, i.e. ‘wrong’ decisions have hardly any impact on the decision maker. Second, the behaviour of single individuals or small groups of individuals is to be explained. The common root of this problem is the difficulty to predict behaviour which is mainly preference governed (...) |
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In this paper it is argued that a) altruism is an inadequate label for human cooperative behavior, and b) an adequate account of cooperation has to depart from the standard economic model of human behavior by taking note of the agents' capacity to see themselves and act as team-members. Contrary to what Fehr et al. seem to think, the main problem of the conceptual limitations of the standard model is not so much the assumption of sel shness but rather the (...) |
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Several developments in the measurement of justice have drawn on Amartya Sen’s work on capabilities. This article addresses the relationship between Sen’s theoretical work and its interpretation in the measurement of justice, in particular by the United Nations Development Project (UNDP) and by the British Equality and Human Rights Commission and Government Equalities Office in its Equality Measurement Framework. It starts with a review of the diverse interpretations of Sen’s work, which range from considering it to be an innovative radical (...) |
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In recent years there has been growing interest in the contrast between Humean theories of property, on the one hand, and Lockean and Rousseauian theories, on the other. The contrast is a broad and abstract one, along the following lines. |
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The capability approach assigns a central role to the contexts within which social interactions take place, which make individual liberty achievable. However, an auxiliary concept is necessary to explain the contexts of collective action more accurately. In this paper I shall present Taylor’s concept of irreducibly social goods as a supplement to the capability approach. I shall also introduce the concept of hermeneutics as a strategy suitable for evaluating which capabilities are to be considered valid, as an alternative to aggregative (...) |
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