Proponents of the public goods argument ('PGA') seek to ground the authority of the state on its putative indispensability as a means of providing public goods. But many of the things we take to be public goods – including many of the goods commonly invoked in support of the PGA – are actually what we might term publicized goods. A publicized good is any whose ‘public’ character results only from a policy decision to make some good freely and universally available. (...) This fact poses complications for the PGA, insofar as the set of possible publicized goods is quite extensive indeed. (shrink)

Many political theorists take the phenomenon of market failure to show that arguments for libertarianism fail in a straightforward way. This chapter explains why the most common form of this objection depends on invalid reasoning, and why a more sophisticated examination of the relevant economics has led most contemporary economists and policy experts to a view that might be called Default Libertarianism, according to which the strong default for public policy—even in response to market failures—should be toward decentralized, pro-individual freedom (...) policies that involve minimal government intervention in markets. Some experts (but by no means all) similarly believe that even in the face of substantial market failures, libertarian policies are generally best all things considered. This shift toward more libertarian policy represents an important change from the middle of the twentieth century. This chapter explains the structure of the arguments that have led to this shift. (shrink)

The question of the moral relevance of the individual demand is fundamental to many purchase decisions of daily consumer life. Can a single purchase make a difference for the better or worse? Each individual consumer could argue that companies are unlikely to adjust their production due to one single item more or less being sold. He might therefore decide not to change his consumption behavior but instead to rely on the effort of others, a pattern commonly referred to as collective (...) action problem. In this article, we study collective action problems with regard to everyday purchase situations. We base our discussion on Shelly Kagan’s famous article “Do I make a difference?” and critically discuss a central assumption of his model: the symmetric relationship between supply and demand. We find that Kagan’s solution to collective action problems is not true a priori but has to be evaluated in certain empirical surroundings. We therefore discuss the approach in the context of the European meat market and demonstrate that Kagan’s argument does not provide a universal solution to cases of meat purchasing. We conclude with an outlook regarding the role of consumer ethics. (shrink)

It is commonplace to suppose that the theory of individual rational choice is considerably less problematic than the theory of collective rational choice. In particular, it is often assumed by philosophers, economists, and other social scientists that an individual's choices among outcomes accurately reflect that individual's underlying preferences or values. Further, it is now well known that if an individual's choices among outcomes satisfy certain plausible axioms of rationality or consistency, that individual's choice-behavior can be interpreted as maximizing expected utility (...) on a utility scale that is unique up to a linear transformation. Hence, there is, in principle, an empirically respectable method of measuring individuals' values and a single unified schema for explaining their actions as value maximizing. (shrink)

The five essays in Part III of Philip Pettit’s Rules, Reasons and Norms are a brilliant blend of normative and empirical concerns. Their starting point is the distinction between two sorts of question we can ask about institutions. Institution arrangements bring about certain outcomes: they foster attitudes, cement relationships, and provide certain people with benefits and others with burdens. One question we can ask concerns the justification of institutions; the other concerns the feasibility of institutions, relative to some outcome. Let (...) me begin by explaining the distinction. I will then say a little about the use Pettit makes of it in his essays. (shrink)

This paper deals with the question of how norms are to be conceived of in order to understand their role as guidelines for human action within various normative orders, particularly in the context of law on the one hand and conventional morality on the other. After some brief remarks on the history of the term “norm,” the author outlines the most significant general features of actually existing social norms, including legal and conventional norms, from which he arrives at two basic (...) requirements on an appropriate conception of such norms: the actuality and the normativity requirements. On this basis, he enters into a critical discussion of Kelsen's highly influential view of norms, arguing that this view is doomed to failure. In the last part of the paper, the author scrutinizes the more promising “practice theory of norms” by H.L.A. Hart, which, in his view, also suffers from some shortcomings, but may be modified in a way that leads to a conception of social norms providing us with a plausible explication of their actual existence and their normative force. (shrink)

A survey of some game-theoretic accounts of the emergence and evolution of spontaneuous cooperation in social and public-good dilemmas.

Gerald Cohen's critique of John Rawls's theory of justice is that it is concerned only with the justice of social institutions, and must thus arbitrarily draw a line between those inequalities excluded and those allowed by the basic structure. Cohen claims that a proper concern with the interests of the least advantaged would rule out 'incentives' for 'talented' individuals. I argue that Rawls's assumption that the subject of justice is the basic structure of society does not arbitrarily restrict the concerns (...) of political justice, as Cohen claims. Further, I argue that it does not allow 'deep' inequalities within a just basic structure. When properly understood, Rawls's theory of justice is strongly egalitarian, taken as a theory of fairness in the way the burdens and benefits of social cooperation are distributed, even if it is not as egalitarian as Cohen wishes. (shrink)

Terrorist violence is often condemned for targeting innocents or non-combatants. There are two objections to this line of argument. First, one may doubt that terrorism is necessarily directed against innocents or non-combatants. However, I will focus on the second objection, according to which there may be exceptions from the prohibition against killing the innocent. In my article I will elaborate whether lethal terrorism against innocents can be justified in a supreme emergency. Starting from a critique of Michael Walzer’s account of (...) supreme emergency, I will argue that the supreme emergency exemption justifies the resort to terrorism against innocents to avert moral disasters such as genocide and ethnic cleansing, provided that the criteria of last resort, proportionality and public declaration are satisfied. (shrink)

This note comments on Bruni and Sugden's interesting notion of fraternity among contract partners as joint commitment to cooperate for mutual benefit. I raise two points on their paper, both concerning the role of sacrifice. First I maintain that, differently from other social preferences, guilt aversion does not imply self-sacrifice. Secondly, I argue that aiming for mutual benefit does not prevent individuals from facing trade-offs between their own and their partners’ surplus, so the notion of sacrifice cannot be entirely eschewed. (...) To the contrary, reciprocal ‘sacrifices’ enhance cooperative intentions and help create feelings of friendliness. (shrink)

1. One of the main aims of this paper is to study the possibilities for free-riding type of behavior in various kinds of many-person interaction situations. In particular it will be of interest to see what kinds of game-theoretic structures, defined in terms of the participants' outcome-preferences, can be involved in cases of free-riding. I shall also be interested in the related problem or dilemma of collective action in a somewhat broader sense. By the dilemma of collective action I mean, (...) generally speaking, the conflict between individual and collective rationality and the conflict between corresponding actions, in the sense it has been discussed in recent literature. Typically (although not invariably) collective action problems and free-rider problems coexist. Let me start my discussion by considering what Elster (1985) has to say about the subject. First, the notion of collective action itself should be characterized. Elster defines it as follows (p. 137): "By collective action I mean the choice by all or most individuals of the course of action that, when chosen by all or most individuals, leads to the collectively best outcome." While this characterization is informative in the present context, I think that it is not appropriate as a general characterization. It may provide a sufficient condition, but it fails as a necessary condition. One reason for this is that there may not be a single collectively best outcome at all. Instead, I suggest we follow common sense and take collective action simply to be action by a collection or group of people, where these people (or at least many of them) act with the aim of achieving a common end or goal (this notion understood very broadly so as to include e.g. following norms, practices, and customs). We also require of a situation of collective action that the participants have several (or at least two) possible courses of action open to them. Elster's above definition of collective action goes in terms of the collectively best outcome or goal. (shrink)

Game theory is the systematic study of interdependent rational choice. It should be distinguished from decision theory, the systematic study of individual (practical and epistemic) choice in parametric contexts (i.e., where the agent is choosing or deliberating independently of other agents). Decision theory has several applications to ethics (see Dreier 2004; Mele and Rawlings 2004). Game theory may be used to explain, to predict, and to evaluate human behavior in contexts where the outcome of action depends on what several agents (...) choose to do and where their choices depend on what others choose to do. (See the entry on game theory) Game theory consequently is relevant to ethics, and it is used in moral and political philosophy in a variety of ways. We shall concentrate on the influence and use of game theory in ethics and those parts of political theory involving norms or principles of justice, ignoring questions about political and legal institutions on the one hand and questions about issues dealing with moral virtues on the other. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

The notion of a spontaneous social order, an order in human affairs which operates without the intervention of any directly ordering mind, has a natural fascination for social and political theorists. This paper provides a taxonomy under which there are two broadly contrasting sorts of spontaneous social order. One is the familiar invisible hand; the other is an arrangement that we describe as the intangible hand. The paper is designed to serve two main purposes. First, to provide a pure account (...) of the invisible hand, with some indication of the varieties of invisible hand (and, indeed, backhand) available. Second, to develop and motivate the unfamiliar conception of the intangible backhand. We believe that a recognition of the availability of this latter sort of spontaneous organising mechanism — and the mechanism is implicitly recognised in many traditions — is of great importance in political theory; it is of particular importance nowadays when the usual focus is entirely on the invisible hand. (shrink)

In this paper we examine the merit of bargaining theory, in its economic and ecological forms, as a model for understanding variation in the frequency of participation in cooperative fishing among men of Ifaluk atoll in Micronesia. Two determinants of bargaining power are considered: resource control and a bargainer’s utility gain for his expected share of the negotiated resource. Several hypotheses which relte cultural and life-course parameters to bargaining power are tested against data on the frequency of cooperative sail-fishing participation. (...) Consistent with predictions generated from bargaining theory, we show that (1) age is negatively correlated with cooperative fishing participation, (2) men of highranking clans and men with high levels of education fish less than men of low-ranking clans and less-educated men, (3) men with high expected utility gains from fishing returns fish more than men with low expected utility gains, (4) number of dependents is positively correlated with cooperative fishing participation, and (5) the number of young genetic offspring residing with a man is positively correlated with cooperative fishing participation, whereas the number of genetic offspring more than 13 years old who are residing with a man is negatively correlated with cooperative fishing participation. (shrink)

This article examines whether a retributivist conception of punishment implies legal moralism and asks what liberalism implies about retributivism and moralism. It makes a case for accepting the weak retributivist thesis that culpable wrongdoing creates a pro tanto case for blame and punishment and the weak moralist claim that moral wrongdoing creates a pro tanto case for legal regulation. This weak moralist claim is compatible with the liberal claim that the legal enforcement of morality is rarely all‐thing‐considered desirable. Though weak (...) moralism has some plausibility, it does not follow from weak retributivism if legitimate state functions are limited in certain ways. (shrink)

Rational choice theory enjoys unprecedented popularity and influence in the behavioral and social sciences, but it generates intractable problems when applied to socially interactive decisions. In individual decisions, instrumental rationality is defined in terms of expected utility maximization. This becomes problematic in interactive decisions, when individuals have only partial control over the outcomes, because expected utility maximization is undefined in the absence of assumptions about how the other participants will behave. Game theory therefore incorporates not only rationality but also common (...) knowledge assumptions, enabling players to anticipate their co-players' strategies. Under these assumptions, disparate anomalies emerge. Instrumental rationality, conventionally interpreted, fails to explain intuitively obvious features of human interaction, yields predictions starkly at variance with experimental findings, and breaks down completely in certain cases. In particular, focal point selection in pure coordination games is inexplicable, though it is easily achieved in practice; the intuitively compelling payoff-dominance principle lacks rational justification; rationality in social dilemmas is self-defeating; a key solution concept for cooperative coalition games is frequently inapplicable; and rational choice in certain sequential games generates contradictions. In experiments, human players behave more cooperatively and receive higher payoffs than strict rationality would permit. Orthodox conceptions of rationality are evidently internally deficient and inadequate for explaining human interaction. Psychological game theory, based on nonstandard assumptions, is required to solve these problems, and some suggestions along these lines have already been put forward. Key Words: backward induction; Centipede game; common knowledge; cooperation; epistemic reasoning; game theory; payoff dominance; pure coordination game; rational choice theory; social dilemma. (shrink)

In order to vindicate rational-choice theory as a mode of explaining social patterns in general - social patterns beyond the narrow range of economic behaviour - we have to recognize the legitimacy of explaining the resilience of certain patterns of behaviour: that is, explaining, not necessarily why they emerged or have been sustained, but why they are robust and reliable. And once we allow the legitimacy of explaining resilience, then we can see how functionalist theory may also serve us well (...) in social science; we lose the basis - the empty black box argumenton which the rational-choice critique of the theory has mostly been grounded. (shrink)

In recent attempts at deriving morality from rationality expected utility theory has played a major role. In the most prominent such attempt, Gauthier'sMorals by Agreement, a mode of maximizing utility calledconstrained maximization is defended. I want to show that constrained maximization or any similar proposal cannot be coherently supported by expected utility theory. First, I point to an important implication of that theory. Second, I discuss the question of what the place of constrained maximization in utility theory might be. Third, (...) I argue that no matter how we answer this question, expected utility theory cannot provide the reason why a moral disposition like constrained maximization is to be preferred to its rivals. (shrink)

A generation of social theorists have argued that if free-rider considerations show that certain collective action predicaments are unresolvable under individual, rational choice – unresolvable under an arrangement where each is free to pursue their own relative advantage – then those considerations will equally show that the predicaments cannot be resolved by recourse to norms (Buchanan, 1975, p. 132; Heath, 1976, p. 30; Sober and Wilson, 1998, 156ff; Taylor, 1987, p. 144). If free-rider considerations explain why people do not spontaneously (...) keep the streets clean, though they would each prefer unlittered streets, then those considerations will also explain why there is no effective norm against littering the streets. (shrink)

A claim that certain purely private matters should be beyond the reach of society's laws, moral rules, and other customs is central to the distinctive liberalism of John Stuart Mill. On Liberty, perhaps the most eloquent defense of individual liberty ever written, laments the hostility allegedly displayed in modern mass societies toward “the right of each individual to act [in private matters] as seems good to his judgement and inclinations”. In Mill's view, a free society must design its institutions with (...) due regard for what he terms “individuality.” That is, public authority, whether in the form of law, customary opinion, or economic power, must be self-limiting so that it does not interfere with the rights of individuals to choose as they like with respect to such private concerns as religious faith, reading materials, living companions, and consumption of drugs and alcohol. Individuals and voluntary groups should be permitted to do whatever they prefer within their private spheres even if everyone else in society dislikes what they do, is annoyed by them, and actually chooses not to be around them or to befriend them. (shrink)

I explore the evolution of strategies in an Augmented Stag Hunt game that adds a punishing strategy to the ordinary Stag Hunt strategies of cooperating, which aims for optimality, and defecting, which “plays it safe.” Cooperating weakly dominates punishing and defecting is the unique evolutionarily stable strategy. Nevertheless, for a wide class of Augmented Stag Hunts, polymorphic strategies combining punishing and cooperating collectively have greater attracting power for replicator dynamics than that of the ESS. The analysis here lends theoretical support (...) to the altruistic punishment hypothesis in the social sciences. (shrink)

The paper focuses on Anthony de Jasay's "anarcho-liberalism" as based oon his game-theoretic approach to the problem of public goods provision.

The backward induction argument purports to show that rational and suitably informed players will defect throughout a finite sequence of prisoner's dilemmas. It is supposed to be a useful argument for predicting how rational players will behave in a variety of interesting decision situations. Here, I lay out a set of assumptions defining a class of finite sequences of prisoner's dilemmas. Given these assumptions, I suggest how it might appear that backward induction succeeds and why it is actually fallacious. Then, (...) I go on to consider the consequences of adopting a stronger set of assumptions. Focusing my attention on stronger sets that, like the original, obey the informedness condition, I show that any supplementation of the original set that preserves informedness does so at the expense of forcing rational participants in prisoner's dilemma situations to have unexpected beliefs, ones that threaten the usefulness of backward induction. (shrink)

A person can intend to achieve his own personal aims and ends, but he can also intend to promote the goals of his groups or collectives. In many cases of collective action these two types of intention will coincide, but they need not, and when they clash, collective action dilemmas, like free-riderism, will emerge. In this paper we discuss and analyze a central kind of group-intentions termed we-intentions, and distinguish between absolute and conditional we-intentions. The analyses of the latter are (...) then applied to a study of two related social phenomena: the agent's standing in reserve and free-riding.It is our claim that when the agent is intentionally in reserve, this involves his having a specific conditional we-intention to participate in the group's action. On the other hand, if he intends to free-ride, he intends not to participate. We also discuss and analyze different types of free-rider intentions. A person can also have a more complex intention concerning the group's action: He can have a conditional personal intention to free-ride combined with a conditional reserve member's we-intention to participate in the group's action. This may indicate that his motives are confused or mixed, but in most cases it can be taken to express his uncertainty of the fulfillment of the relevant conditions of his actions. (shrink)

James Tooley; Politics, Markets and Schools Politics, Markets and America’s Schools, Journal of Philosophy of Education, Volume 28, Issue 2, 30 May 2006, Pages.

Individual rationality, or doing what is best for oneself, is a standard model used to explain and predict human behavior, and von Neumann–Morgenstern game theory is the classical mathematical formalization of this theory in multiple-agent settings. Individual rationality, however, is an inadequate model for the synthesis of artificial social systems where cooperation is essential, since it does not permit the accommodation of group interests other than as aggregations of individual interests. Satisficing game theory is based upon a well-defined notion of (...) being good enough, and does accommodate group as well as individual interests through the use of conditional preference relationships, whereby a decision maker is able to adjust its preferences as a function of the preferences, and not just the options, of others. This new theory is offered as an alternative paradigm to construct artificial societies that are capable of complex behavior that goes beyond exclusive self interest. (shrink)

In A Darwinian left Peter Singer aims to reconcile Darwinian theory with left wing politics, using evolutionary game theory and in particular a model proposed by Robert Axelrod, which shows that cooperation can be an evolutionarily successful strategy. In this paper I will show that whilst Axelrod’s model can give support to a kind of left wing politics, it is not the kind that Singer himself envisages. In fact, it is shown that there are insurmountable problems for the idea of (...) increasing Axelrodian cooperation within a welfare state. My surprising conclusion will be that a Darwinian left worthy of the name would be anarchistic. Ó 2005 Elsevier Ltd. All rights reserved. (shrink)

The philosopher David Lewis is credited by many social scientists, including mainstream economists, with having founded the modern (game-theoretical) approach to conventions, viewed as solutions to recurrent coordination problems. Yet it is generally ignored that he revised his approach, soon after the publication of his well-known book. I suggest that this revision has deep implications (probably not perceived by Lewis himself) on the analytical links between coordination, uncertainty and rationality. Thinking anew about these issues leads me to map out an (...) alternative social scientific research programme. The traditional ontological equipment of methodological individualism should be reinforced in order to admit the existence of an “intersubjective” world beside the two familiar worlds: the “objective” world of observable things, and the “subjective” world of expectations and individual beliefs. In particular, language becomes necessary to understand coordination via conventions, rather than the other way round. That has led a group of institutionalist economists and pragmatist sociologists to develop an enlarged model of rationality, no longer isolated from questions of coordination and values. This model is the basis for the “Economics of Conventions”. (shrink)

(1992). The prisoner's dilemma and educational provision: A reply to Ruth Jonathan. British Journal of Educational Studies: Vol. 40, No. 2, pp. 118-133.

In a conflict between two people, one person wants one thing and the other wants something else and they think they can't both have what they want. Suppose that what they want can only be the outcome of some joint action. Adam must do either y or z and Eve either y ' or z ' – here y -and- y ' would be one joint action, y -and- z ' would be another, and so on. Adam wants the outcome (...) of his doing z while Eve is doing y '. Eve wants the outcome of her doing z ' while Adam is doing y. Each thinks that these outcomes can't both be had. (shrink)

John Stuart Mill provides a classic defense of individual and group rights to liberty with respect to purely private or self-regarding matters: The only part of the conduct of any one, for which he is amenable to society, is that which concerns others. In the part which merely concerns himself … directly, and in the first instance, … his independence is, of right, absolute.… From this liberty of each individual, follows the liberty, within the same limits, of combination among individuals; (...) freedom to unite, for any purpose not involving harm to others: the persons combining being supposed to be of full age, and not forced or deceived. (shrink)

This article examines two empirical research traditions—experimental economics and the social identity approach in social psychology—that may be seen as attempts to falsify and verify the theory of collective intentionality, respectively. The article argues that both approaches fail to settle the issue. However, this is not necessarily due to the alleged immaturity of the social sciences but, possibly, to the philosophical nature of intentionality and intentional action. The article shows how broadly Davidsonian action theory, including Hacking’s notion of the looping (...) effect of the human sciences, can be developed into an argument for the view that there is no theory-independent true nature of intentional action. If the Davidsonian line of thought is correct, the theory of collective intentionality is, in a sense, true if we accept the theory. Key Words: collective intentionality • experimental economics • social identity theory • Donald Davidson • Ian Hacking • constructivism • action • agency • philosophy of the social sciences. (shrink)

Hobbes’s state of nature is often analyzed in two-person two-action non-cooperative games. By definition, this literature only focuses on duels. Yet, if we consider general games, i.e., with more than two agents, analyzing Hobbes’s state of nature in terms of duel is not completely satisfactory, since it is a very specific interpretation of the war of all against all. Therefore, we propose a definition of the state of nature for games with an arbitrary number of players. We show that this (...) definition coincides with the strategy profile considered as the state of nature in two-person games. Furthermore, we study what we call rational states of nature. We show that in rational states of nature, the utility level of any agent is equal to his maximin payoff. We also show that rational states of nature always exist in inessential games. Finally, we prove the existence of states of nature in a class of symmetric games. (shrink)

We present a novel approach to N-person bargaining, based on the idea that the agreement reached in a negotiation is determined by how the direct conflict resulting from disagreement would be resolved. Our basic building block is the disagreement function, which maps each set of feasible outcomes into a disagreement point. Adding this function to the description of a bargaining problem, a weak axiom based on individual rationality leads to a unique solution: the agreement in the shadow of conflict, ASC. (...) This agreement may be construed as the limit of a sequence of partial agreements, each of which is reached as a function of the parties’ relative power in the disagreement scenario. As a result, we identify a link between the circumstances of bargaining and the bargaining powers within it. The rich get the law passed by means of force and arms or get it accepted by fear to their might, aren’t things this way? Plato, Republic. (shrink)

I discuss how simulating another agent can be useful in some game-theoretical situations, particularly iterated games such as the centipede game.

This commentary focuses on the parts of psychological game theory dealing with preference, as illustrated by team reasoning, and supports the conclusion that these theoretical notions do not contribute above and beyond existing theory in understanding social interaction. In particular, psychology and games are already bridged by a comprehensive, formal, and inherently psychological theory, interdependence theory (Kelley & Thibaut 1978; Kelley et al. 2003), which has been demonstrated to account for a wide variety of social interaction phenomena.

The provision of public goods is generally assumed to require compulsion by the state. Individuals may want them, but they have no incentive to contribute voluntarily to their production. David Schmidtz proposes ?assurance contracts? as a way around the problem of ?wasted? contributions. However, such contracts do not eliminate the incentive to free ride on public goods. Empirical evidence suggests that enforced contributions may be a more effective way of combatting this problem than assurance contracts. More generally, we need to (...) investigate different kinds of moral motivation to see how they may elicit voluntary contributions of public goods. (shrink)

InMorals by Agreement, David Gauthier (1986) argues that it is rational to intend to cooperate, even in single-play Prisoner's Dilemma games, provided (1) your co-player has a similar intention; (2) both intentions can be revealed to the other player. To this thesis four objections are made. (a) In a strategic decision the parameters on which the argument relies cannot be supposed to be given. (b) Of each pair ofa-symmetric intentions at least one is not rational. But it is impossible to (...) form symmetric intentions to cooperate conditionally. For the condition on which the decision depends cannot be fulfilled without deciding. (c) If one's intention has to be ascertained on the basis of information about one's past performance, it is straightforwardly rational to intend to cooperate, but there is no reason to do so in a single-play PD. (d) The argument cannot be extended ton-person games which are Gauthier's principal concern. (shrink)