What is the prudentially right thing to do in situations in which our actions will shape our preferences? Suppose, for instance, that you are considering getting married, and that you know that if you get married, you will prefer being unmarried, and that if you stay unmarried, you will prefer being married. This is the problem I will deal with in this article. I will begin by explaining why preferences matter to prudence. I will then go on to discuss a (...) couple of unsuccessful theories and see what we can learn from their mistakes. One of the most important lessons is that how you would have felt about a life had you never led it is irrelevant to the question of what you prudentially ought to do. My theory takes this into account. What counts is how you feel about a life when you are actually leading it. (Published Online August 21 2006). (shrink)

Previous edition, 1st, published in 1971.

Behavioural economics has taught us that human agents don't always display consistent, context-independent and stable preferences in their choice behaviour. Can we nevertheless do welfare economics...

Reason, we are told, is what makes us human, the source of our knowledge and wisdom. If reason is so useful, why didn't it also evolve in other animals? If reason is that reliable, why do we produce so much thoroughly reasoned nonsense? In their groundbreaking account of the evolution and workings of reason, Hugo Mercier and Dan Sperber set out to solve this double enigma. Reason, they argue with a compelling mix of real-life and experimental evidence, is not geared (...) to solitary use, to arriving at better beliefs and decisions on our own. What reason does, rather, is help us justify our beliefs and actions to others, convince them through argumentation, and evaluate the justifications and arguments that others address to us. In other words, reason helps humans better exploit their uniquely rich social environment. This interactionist interpretation explains why reason may have evolved and how it fits with other cognitive mechanisms. It makes sense of strengths and weaknesses that have long puzzled philosophers and psychologists--why reason is biased in favor of what we already believe, why it may lead to terrible ideas and yet is indispensable to spreading good ones.--. (shrink)

Theories of social justice are necessarily abstract, reaching beyond the particular and the immediate to the general and the timeless. Yet such theories, addressing the world and its problems, must respond to the real and changing dilemmas of the day. A brilliant work of practical philosophy, Frontiers of Justice is dedicated to this proposition. Taking up three urgent problems of social justice neglected by current theories and thus harder to tackle in practical terms and everyday life, Martha Nussbaum seeks a (...) theory of social justice that can guide us to a richer, more responsive approach to social cooperation. The idea of the social contract--especially as developed in the work of John Rawls--is one of the most powerful approaches to social justice in the Western tradition. But as Nussbaum demonstrates, even Rawls's theory, suggesting a contract for mutual advantage among approximate equals, cannot address questions of social justice posed by unequal parties. How, for instance, can we extend the equal rights of citizenship--education, health care, political rights and liberties--to those with physical and mental disabilities? How can we extend justice and dignified life conditions to all citizens of the world? And how, finally, can we bring our treatment of nonhuman animals into our notions of social justice? Exploring the limitations of the social contract in these three areas, Nussbaum devises an alternative theory based on the idea of capabilities. She helps us to think more clearly about the purposes of political cooperation and the nature of political principles--and to look to a future of greater justice for all. (shrink)

Can the general public learn to deal with risk and uncertainty, or do authorities need to steer people’s choices in the right direction? Libertarian paternalists argue that results from psychological research show that our reasoning is systematically flawed and that we are hardly educable because our cognitive biases resemble stable visual illusions. For that reason, they maintain, authorities who know what is best for us need to step in and steer our behavior with the help of “nudges.” Nudges are nothing (...) new, but justifying them on the basis of a latent irrationality is. In this article, I analyze the scientific evidence presented for such a justification. It suffers from narrow logical norms, that is, a misunderstanding of the nature of rational thinking, and from a confirmation bias, that is, selective reporting of research. These two flaws focus the blame on individuals’ minds rather than on external causes, such as industries that spend billions to nudge people into unhealthy behavior. I conclude that the claim that we are hardly educable lacks evidence and forecloses the true alternative to nudging: teaching people to become risk savvy. (shrink)

Behavioral paternalism raises deep concerns that do not arise in traditional welfare economics. These concerns stem from behavioral paternalism’s acceptance of the defining axioms of neoclassical rationality for normative purposes, despite having rejected them as positive descriptions of reality. We argue that behavioral paternalists have indeed accepted neoclassical rationality axioms as a welfare standard; that economists historically adopted these axioms not for their normative plausibility, but for their usefulness in formal and theoretical modeling; that broadly rational individuals might fail to (...) satisfy the axioms for various reasons, making them unpersuasive as normative criteria; and that even if their violation did constitute irrationality, that would not justify paternalists’ choosing among inconsistent preferences to define an individual’s “true” preferences. (shrink)

Our goal in this chapter is to draw on empirical work about preference formation and welfare to propose a distinctive form of paternalism, libertarian in spirit, one that should be acceptable to those who are firmly committed to freedom of choice on grounds of either autonomy or welfare. Indeed, we urge that a kind of ‘libertarian paternalism’ provides a basis for both understanding and rethinking many social practices, including those that deal with worker welfare, consumer protection, and the family.

This book is about preferences, principally as they figure in economics. It also explores their uses in everyday language and action, how they are understood in psychology and how they figure in philosophical reflection on action and morality. The book clarifies and for the most part defends the way in which economists invoke preferences to explain, predict and assess behavior and outcomes. Hausman argues, however, that the predictions and explanations economists offer rely on theories of preference formation that are in (...) need of further development, and he criticizes attempts to define welfare in terms of preferences and to define preferences in terms of choices or self-interest. The analysis clarifies the relations between rational choice theory and philosophical accounts of human action. The book also assembles the materials out of which models of preference formation and modification can be constructed, and it comments on how reason and emotion shape preferences. (shrink)

Together, these collected papers develop the idea that human thinking - from scientific creativity to simply understanding what a positive HIV test means - "happens" partly outside the mind.".

Having defended the usefulness of our definition of reasoning, we stress that reasoning is not only for convincing but also for evaluating arguments, and that as such it has an epistemic function. We defend the evidence supporting the theory against several challenges: People are good informal arguers, they reason better in groups, and they have a confirmation bias. Finally, we consider possible extensions, first in terms of process-level theories of reasoning, and second in the effects of reasoning outside the lab.

This is an interview by the Erasmus Journal for Philosophy and Economics with Robert Sugden. The interview covers the intellectual trajectory of Sugden, from his early critique of Amartya Sen’s liberalism, to his interactions with James Buchanan and his contributions to behavioural economics. A major theme in the interview is Sugden’s development of a rival program of normative economics based on modern behavioural economics. The interview also discusses Sugden’s recent book The Community of Advantage which synthesizes many of the themes (...) he worked on. (shrink)