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 (...) is Nudge? How is it different from social advertisement? Does Nudge induce genuine preference change? Does Nudge build moral character? Is there a moral difference between the use of Nudge as opposed to subliminal images to reach policy objectives? And what are the moral constraints on Nudge? (shrink)

The desire-satisfaction theory of well-being says, in its simplest form, that a person’s level of welfare is determined by the extent to which their desires are satisfied. A question faced by anyone attracted to such a view is, *Which desires*? This paper proposes a new answer to this question by characterizing a distinction among desires that isn’t much discussed in the well-being literature. This is the distinction between what a person wants in a merely behavioral sense, in that the person (...) is, for some reason or other, disposed to act so as to try to get it, and what a person wants in a more robust sense, the sense of being *genuinely attracted* to the thing. I try to make this distinction more clear, and I argue for its axiological relevance by putting it to work in solving four problem cases for desire satisfactionism. The theory defended holds that only desires in the latter, genuine-attraction sense are relevant to welfare. (shrink)

This is a major contribution to the theory of rational choice which will be of particular interest to philosophers and economists. The author sets out the foundations of rational choice, and then sketches a dynamic choice framework in which principles of ordering and independence follow from a number of apparently plausible conditions. However, there is potential conflict among these conditions, and when they are weakened to avoid it the usual foundations of rational choice no longer prevail. The thrust of the (...) argument is to suggest that the theory of rational choice is less deterministic than many suppose. (shrink)

This is the first definitive graduate and advanced undergraduate level treatment of behavioral economics that describes the cutting edge of the subject. It carefully outlines the evidence, describes the relevant theory, and provides interesting and economically relevant applications of the theory. Behavioral economics is not only the fastest growing area in economics but it is rapidly going mainstream, and it is most likely to be the future of economics. The field has lacked a definitive treatment- this is it. The book (...) covers most areas in economics, which accounts for its length. Behavioral economics not only explains the evidence much better, it is fun to do relative to the dismal science of traditional economics; this book conveys both these aspects. (shrink)

If citizens’ behavior threatens to harm others or seems not to be in their own interest, it is not uncommon for governments to attempt to change that behavior. Governmental policy makers can apply established tools from the governmental toolbox to this end. Alternatively, they can employ new tools that capitalize on the wealth of knowledge about human behavior and behavior change that has been accumulated in the behavioral sciences. Two contrasting approaches to behavior change are nudge policies and boost policies. (...) These policies rest on fundamentally different research programs on bounded rationality, namely, the heuristics and biases program and the simple heuristics program, respectively. This article examines the policy–theory coherence of each approach. To this end, it identifies the necessary assumptions underlying each policy and analyzes to what extent these assumptions are implied by the theoretical commitments of the respective research program. Two key results of this analysis are that the two policy approaches rest on diverging assumptions and that both suffer from disconnects with the respective theoretical program, but to different degrees: Nudging appears to be more adversely affected than boosting does. The article concludes with a discussion of the limits of the chosen evaluative dimension, policy–theory coherence, and reviews some other benchmarks on which policy programs can be assessed. (shrink)

Leading versions of hedonism generate implausible results about the welfare value of very intense or unwanted pleasures, while recent versions of desire satisfactionism overvalue the fulfillment of desires associated with compulsions and addictions. Consequently, both these theories fail to satisfy a plausible condition of adequacy for theories of well-being proposed by L.W. Sumner: they do not make one’s well-being depend on one’s own cares or concerns. But Sumner’s own life-satisfaction theory cannot easily be extended to explain welfare over time, and (...) it makes mistaken (autonomous, informed) self-assessment impossible. A new account of well-being based on the stable realization of personal values enjoys the advantages claimed for these subjective theories while avoiding these problems. (shrink)

Deeply embedded in popular cultural portrayals of admirable lives, in everyday conceptions of maturity, and in philosophical work in ethics and political philosophy is the idea that people not only will, but ought to, make commitments and that it is good for the individual herself to do so. In part one I briefly raise skeptical doubts about the defensibility of the normative pressure to commit, and suggest that commitment may only be one style of managing one’s diachronic existence. In part (...) two I examine the distinguishing features of commitment and how commitment differs from “mere” intention. Parts three and four are devoted to detailed critique of the principal philosophical defenses of the value of commitment, including both Pragmatic and Better Life arguments. In the last section, I try to construct an explanation for what makes commitment attractive to many persons if not universally so. (shrink)

Sometimes we make decisions which affect our lives at times when we will hold values that are different from our values at the time the decision is made. What is the reasonable way to make such a choice? Some think we should accept a requirement of temporal neutrality and take both sets of values into account, others think we should decide on the strength of our present values, yet others think that in evaluating what will happen at that other time (...) we should use the values that we will endorse at that time instead of our present values. These views see the problem as one about finding some attitude towards time itself that is distinctively rational. This article argues that these views are subject to serious objections. It suggests that instead we should think in terms of well-being. If a person approves of, or positively responds to, the way their life is going they will experience more well-being than if there is no positive response. The article explores the implications of a positive response condition on well-being for deciding what it is rational to do in cases involving changing goals. (shrink)

This paper addresses the question "In virtue of what do practical reasons have normative force or justificatory power?" There seems to be good reason to doubt that desires are the source of normativity. However, I argue that the reasons to be suspicious of desire-based accounts of normativity can be overcome by a sufficiently sophisticated account. The position I defend in this paper is one according to which desires, or more generally, proattitudes, do constitute values and provide rational justifications of actions (...) when they are organized in the right way. (shrink)

It seems natural to think of an unwilling addict as having a pattern of preferences that she does not endorse—preferences that, in some sense, she does not ‘identify’ with. Following Frankfurt (1971), Jeffrey (1974) proposed a way of modeling those features of an agent’s preferences by appealing to preferences among preferences.Th„e addict’s preferences are preferences she does not prefer to have. I argue that this modeling suggestion will not do, for it follows from plausible assumptions that a minimally rational agent (...) must prefer those first-order preferences she actually has. I close by considering two different but related ways to think about the initial phenomenon. (shrink)

Neoclassical economics assumes that individuals have stable and context-independent preferences, and uses preference satisfaction as a normative criterion. By calling this assumption into question, behavioural findings cause fundamental problems for normative economics. A common response to these problems is to treat deviations from conventional rational choice theory as mistakes, and to try to reconstruct the preferences that individuals would have acted on, had they reasoned correctly. We argue that this preference purification approach implicitly uses a dualistic model of the human (...) being, in which an inner rational agent is trapped in an outer psychological shell. This model is psychologically and philosophically problematic. (shrink)

What is well-being? This is one of humanity's oldest and deepest questions; Valerie Tiberius offers a fresh answer. She argues that our lives go well to the extent that we succeed in what matters to us emotionally, reflectively, and over the long term. So when we want to help others achieve well-being, we should pay attention to their values.

This book offers a comprehensive overview of the structure, strategy and methods of assessment of orthodox theoretical economics. In Part I Professor Hausman explains how economists theorise, emphasising the essential underlying commitment of economists to a vision of economics as a separate science. In Part II he defends the view that the basic axioms of economics are 'inexact' since they deal only with the 'major' causes; unlike most writers on economic methodology, the author argues that it is the rules that (...) economists espouse rather than their practice that is at fault. Part III links the conception of economics as a separate science to the fact that economic theories offer reasons and justifications for human actions, not just their causes. With its lengthy appendix introducing relevant issues in philosophy of science, this book is a major addition to philosophy of economics and of social science. (shrink)

This note replies to a comment by Daniel Hausman on our paper ‘Preference purification and the inner rational agent: a critique of the conventional wisdom of behavioural welfare economics’. We clarify our characterisation of behavioural welfare economics and acknowledge that Hausman does fully endorse this approach. However, we argue that Hausman’s response to our critique, like behavioural welfare economics itself, implicitly uses a model of an inner rational agent.

How should you live? Should you devote yourself to perfecting a single talent or try to live a balanced life? Should you lighten up and have more fun, or buckle down and try to achieve greatness? Should you try to be a better friend? Should you be self-critical or self-accepting? And how should you decide among the possibilities open to you? Should you consult experts, listen to your parents, or should you do lots of research? Should you make lists of (...) pros and cons, or go with your gut? These are not questions that can be answered in general or in the abstract. Rather, these questions are addressed to the first person point of view, to the perspective each of us occupies when we reflect on how to live without knowing exactly what we're aiming for. To answer them, this book focuses on the process of living one's life from the inside, rather than on defining goals from the outside. Drawing on traditional philosophical sources as well as literature and recent work in social psychology, this book argues that to live well, we need to develop reflective wisdom: to care about things that will sustain us and give us good experiences, to have perspective on our successes and failures, and to be moderately self-aware and cautiously optimistic about human nature. Further, we need to know when to think about our values, character, and choices, and when not to. A crucial part of wisdom, the book maintains, is being able to shift perspectives: to be self-critical; to be realistic; to examine life when reflection is appropriate, but not when we should lose ourselves in experience. (shrink)

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)

ABSTRACT:This paper examines the norms that should guide policies aimed at promoting happiness or, more broadly, well-being. In particular, we take up the question of which conception of well-being should govern well-being policy, assuming some such policies to be legitimate. In answer, we lay out a case for ‘pragmatic subjectivism’: given widely accepted principles of respect for persons, well-being policy may not assume any view of well-being, subjectivist or objectivist. Rather, it should promote what its intended beneficiaries see as good (...) for them: pleasure for hedonists, excellence for Aristotelians, etc. Specifically, well-being policy should promote citizens’ ‘personal welfare values’: those values—and not mere preferences—that individuals see as bearing on their well-being. Finally, we briefly consider how pragmatic subjectivism works in practice. While our discussion takes for granted the legitimacy of well-being policy, we suggest that pragmatic subjectivism strengthens the case for such policy. (shrink)

According to critics such as Bernard Williams, traditional ethical theories render it impossible to lead good and meaningful lives because they emphasize moral duty or the promotion of external values at the expense of the personal commitments that make our lives worth living from our own perspective. Responses to this criticism have not addressed the fundamental question about the proper relationship between a person's commitments to moral values and her commitments to non-moral or personal values. In this article, I suggest (...) that we think about this relationship by reflecting on the way that a prudentially virtuous person who has commitments to both moral and non-moral values would regard these commitments. I argue that people with the virtue of balance do have reasons to act in accordance with their moral commitments, but that whether or not these reasons are overriding depends on the type of commitment in question. (shrink)

Sometimes a series of choices do not serve one's concerns well even though each choice in the series seems perfectly well suited to serving one's concerns. In such cases, one has a dynamic choice problem. Otherwise put, one has a problem related to the fact that one's choices are spread out over time. This survey reviews some of the challenging choice situations and problematic preference structures that can prompt dynamic choice problems. It also reviews some proposed solutions, and explains how (...) some familiar but potentially puzzling phenomena — including, for example, self-destructive addictive behavior and dangerous environmental destruction — have been illuminated by dynamic choice theory. (shrink)

This essay examines the critique of behavioral economics that Infante, Lecouteaux and Sugden offer in:"Preference Purification and the Inner Rational Agent.” It identifies and questions three main criticisms that ILS make: a methodological criticism, alleging that there is no psychological basis for the attribution of purified preferences, an epistemological criticism, alleging that there is little evidence for claims about purified preferences, and a normative criticism, arguing that policies should aim to facilitate people’s choices rather than to satisfy purified preferences. The (...) essay also distinguishes the view of welfare economics defended in Preference, Value, Choice, and Welfare from the claims of behavioral economists ILS criticize. (shrink)

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)

The cognitive critique of the goals and desires that are input into the implicit calculations that result in instrumental rationality is one aspect of what has been termed broad rationality (Elster, 1983). This cognitive critique involves, among other things, the search for rational integration (Nozick, 1993)—that is, consistency between first-order and second-order preferences. Forming a second-order preference involves metarepresentational abilities made possible by mental decoupling operations. However, these decoupling abilities are separable from the motive that initiates the cognitive critique itself. (...) I argue that Velleman (1992) has identified that motive (“the desire to act in accordance with reasons”), and that it might be operationalisable as a thinking disposition at a very superordinate cognitive level. This thinking disposition, the Master Rationality Motive, is likely to be of particular importance in explaining individual differences in the tendency to seek rational integration. Preliminary research on related constructs suggests that this construct is measurable. (shrink)