May a government attempt to improve the lives of its citizens by promoting the activities it deems valuable and discouraging those it disvalues? May it engage in such a practice even when doing so is not a requirement of justice in some strict sense, and even when the judgments of value and disvalue in question are likely to be subject to controversy among its citizens? These questions have long stood at the center of debates between political perfectionists and political neutralists. (...) In what follows I address a prominent cluster of arguments against political perfec- tionism—namely, arguments that focus on the coercive dimensions of state action. My main claim is simple: whatever concerns we might have about coercion, arguments from coercion fall short of supporting a thoroughgoing rejection of perfectionism, for the reason that perfectionist policies need not be coercive. The main body of the paper responds, however, to several neutra- list challenges to this last claim. (shrink)

This study focuses in testing the power of reciprocity and leadership as collective action incentive structures and cooperation economic benefits in explaining collective action initiation in the context of a post-communist transition economy. The paper is based on a structured survey targeting Albanian export-oriented farmers. Different from most previous studies, this paper uses both regression analysis and machine learning procedure which is better suited for analysing non-linear relationships. The empirical findings are at odds with common sense that non-cooperation is (...) the dominant strategy, because the presence of tolerant reciprocators and leadership resources provide promising incentive structures for collective action development. KEYWORDS: Albania, collective action, collective action benefits, incentive structures, leadership, power, reciprocity. (shrink)

Contemporary debates about scientific institutions and practice feature many proposed reforms. Most of these require increased efforts from scientists. But how do scientists’ incentives for effort interact? How can scientific institutions encourage scientists to invest effort in research? We explore these questions using a game-theoretic model of publication markets. We employ a base game between authors and reviewers, before assessing some of its tendencies by means of analysis and simulations. We compare how the effort expenditures of these groups interact (...) in our model under a variety of settings, such as double-blind and open review systems. We make a number of findings, including that open review can increase the effort of authors in a range of circumstances and that these effects can manifest in a policy-relevant period of time. However, we find that open review’s impact on authors’ efforts is sensitive to the strength of several other influences. (shrink)

Mill (1872, 1874) is an early proponent of the thesis that economics has a special domain in which it can operate relatively independently of findings from other sciences. Contra Mill, I argue that this so-called separateness-thesis is best defendedunder an externalist interpretation of Rational Choice Theory (RCT). Mill’s defence is consistent with an internalist interpretation of RCT. Internalism holds that RCT depicts psychological mechanisms operating in economic agents. I argue that such a defence fails to establish separateness, because it (...) makes economics highly depended on psychological findings. However, externalism understands RCT as an adequate description of how agents react to incentives if certain environmental structures are present. Under this interpretation, we can defend separateness by investigating which features of an environmental structure will lead agents to behave in accordance with RCT. Thereby, we can derive indicators that enable us to demarcate a separate domain for economics. (shrink)

In the context of Ukraine’s membership in the WTO, the functioning of a free trade area with the EU, the opportunity for agricultural producers to obtain a larger share of the value added is primarily linked to the intensification of trade in domestic livestock products and their processing products. However, their production is one of the high-risk areas and requires a set of measures aimed at ensuring proper quality. Without effective solution of the problem of quality of livestock products it (...) is impossible to ensure its competitiveness in the world market, to guarantee the rational nutrition of the population of the country, the availability of the necessary components for the vital activity of the human body. The aim of the research is to determine the socio-economic factors for ensuring the quality of livestock products in Ukraine. The scientific and specific research methods were used to solve the tasks set in the work: the historical method; abstraction method; method of comparative analysis; system-structural method. The main producer of livestock products in Ukraine are households. They do not have the capabilities to implement technologies of keeping, feeding, veterinary services, programs prerequisites for guaranteeing the safety of products, adherence to the HACCP principles. In Ukraine, real technical, economic and organizational-economic prerequisites for ensuring the safety and quality of livestock products are created only in the poultry meat sector. During 2015-2017, the trends in production of almost all types of livestock products except poultry and honey were identified. One of the reasons for this situation was, firstly, decreasing in capital investment in the livestock sector, and secondly, the low profitability of production of livestock products in the context of accelerated growth in prices for resources. It is proved that insignificant market (price) incentives should be supplemented with instruments of state assistance to improve the quality parameters of products on the basis of specialized enterprises. The necessity of state support for the production of livestock products based on small and medium-sized enterprises is substantiated. This will effectively combine the processes of increasing the production of livestock products with the environmental friendliness of production and steady improvement of quality. It is shown that the low quality of certain livestock products in Ukraine is caused by insufficient living standards of the population and low incomes of the majority of households, which cause them to consume low quality products. It is determined that the problem of guaranteeing the quality of livestock products in Ukraine has deep roots cause due to the influence of socio-economic factors. Therefore, a comprehensive approach is needed to solve it, which is not limited to improving the efficiency of the state control system and successfully harmonizing of the Ukrainian technical regulation system with the European one. The problem of low quality and the danger of livestock production requires a systematic approach for its solution, which is not limited, in particular, by measures to improve the system of state control and ensure approximation of the domestic technical regulation system to the European one. In Ukraine, major high-quality animal products are economically inaccessible to a large part of households. The projected increase in safety parameters and a certain improvement in the quality of livestock products as a result of the implementation of regulations adopted in 2014-2017, will necessarily lead to an increase in its value, and therefore may lead to a decrease in market demand and even greater inaccessibility of these products to people. All this can only aggravate the situation with guaranteeing the food security of the country, forming the prerequisites for increasing the intellectual capacity of the nation. (shrink)

In “Regulating social media as a public good: Limiting epistemic segregation” (2022), Toby Handfield tackles a well-known problematic aspect of widespread social media use: the formation of ideologically monotone and insulated social networks. Handfield argues that we can take some cues from economics to reduce the extent to which echo chambers grow up around individual users. Specifically, he argues that tax incentives to encourage network heterophily may be levied at any of three different groups: individual social media users, social (...) media sites/companies, or advertisers who use social media to promote their products and material. In this response, I examine the plausibility of using such incentives on each of the these groups. I argue, first, that using tax incentives on either (1) social media companies or (2) advertisers would be ineffective as these incentives could not feasibly be made strong enough to override the enormous financial gain of the standard social media algorithms. Next, I argue that levying the incentives/penalties on individual users would be a hazard, due to the risk of what is called the epistemic “backfire effect”. Finally, I argue that the problem lies in relying on incentives and disincentives—rather than direct regulation—to increase network heterophily. (shrink)

Biomass is one of the main sources of energy in Kenya accounting for over 68% of the total primary energy consumption. The continued dependency on biomass energy has resulted to land degradation, deforestation, drought and famine. The adoption and continued use of biogas energy technologies within the developed and developing countries is of great social, economic and environmental benefit. Although the positive benefits of using biogas is clear, in Africa and Kenya the households’ biogas adoption level is low. The (...) main purpose of this study was to analyze social, economic factors that influence adoption of biogas energy among farm households in Nandi, Uasin-Gishu and Trans-Nzoia counties in North Rift region of Kenya. The target population was all the farm households in the three counties. The study employed farm household multistage research design mainly cluster, and simple random sampling techniques to get a sample size of 295 respondents for the study. Farm households were used as units for analysis. Data was collected using questionnaires and analyzed using descriptive and inferential statistics. Logit model was used to estimate the parameters of the regression model. The results indicated that: social-economic factors were significant determinants of adoption of biogas technology (p – value 0.0000 < 0. 05) for all variables in North Rift region of Kenya. From the study findings, the following recommendations are drawn: Firstly government and other stakeholders should design policies that encourage the use of sustainable energy sources such as biogas. Secondly, incentives and provision of subsidies in terms of financial support should be given to households to acquire biogas devices. Thirdly households should be educated on benefits of using biogas. Government should also ensure efficient extension services in the study area by organizing workshops, trainings and make provisions to facilitate extension. (shrink)

There is growing concern that a global economic system fueled predominately by financial incentives may not maximize human flourishing and social welfare externalities. If so, this presents a challenge of how to get economic actors to adopt a more virtuous motivational mindset. Relying on historical, psychological, and philosophical research, we show how such a mindset can be instilled. First, we demonstrate that historically, financial self-interest has never in fact been the only guiding motive behind free markets, but (...) that markets themselves are representations of our individual and collective moral identities. Building on this understanding, we review the research on how economic incentives crowd out virtue-oriented concerns. We then introduce the concept of moral self-awareness (MSA), an evolving mindset informed by reflection on moral identity, namely what one’s actions say about oneself given the impacts on others or society that one’s action may effect. MSA comprises three fundamental aspects of virtue-oriented reasoning: pride, shame, and guilt. Finally, we offer a four-stage model anchored in systems theory, yielding ever more refined motivating strategies for maximizing human flourishing and social welfare externalities. (shrink)

This paper challenges the first Gettier counterexample to the tripartite account of knowledge. Noting that 'the man who will get the job' is a description and invoking Donnellan's distinction between their 'referential' and 'attributive' uses, I argue that Smith does not actually believe that the man who will get the job has ten coins in his pocket. Smith's ignorance about who will get the job shows that the belief cannot be understood referentially, his ignorance of the coins in his pocket (...) shows that it cannot be understood attributively. An explanation for why Smith appeared to have justified true belief is given by distinguishing between 'belief' and 'belief in truth'. Smith believes the sentence 'the man who will get the job has ten coins in his pocket' to be true (he mistakenly believes that Jones will get the job, of whom he knows that he has ten coins in his pocket) (hence his 'belief'), the sentence is true (hence 'truth'), and he has sufficient reason to assent to it (hence his 'justification'). But he does not believe the proposition expressed. Hence he does not know it either. (shrink)

Trolley problems have been used in the development of moral theory and the psychological study of moral judgments and behavior. Most of this research has focused on people from the West, with implicit assumptions that moral intuitions should generalize and that moral psychology is universal. However, cultural differences may be associated with differences in moral judgments and behavior. We operationalized a trolley problem in the laboratory, with economic incentives and real-life consequences, and compared British and Chinese samples on (...) moral behavior and judgment. We found that Chinese participants were less willing to sacrifice one person to save five others, and less likely to consider such an action to be right. In a second study using three scenarios, including the standard scenario where lives are threatened by an on-coming train, fewer Chinese than British participants were willing to take action and sacrifice one to save five, and this cultural difference was more pronounced when the consequences were less severe than death. (shrink)

Modern promising theoretical and methodological studies have reasonably shown that the issue of bonuses significance in the production and economic mechanism is not controversial. Currently, an order has been established where economic incentive funds are formed according to fixed standards, approved in differentiated amounts by year of economic development cycle; the main fund-forming indicators are performance to the supply plan of finished products under the concluded contracts, increase in labour productivity, improvement of finished product quality and volume (...) growth net profit. The introduction of long-term wage standards for the hryvnia finished product strengthens the economic interest of labour collectives in increasing labour productivity and reducing staff turnover, improving the procedure of material incentives for combining professions, high rates and criteria for evaluating quality in labour, introducing technologically founded standards. This paper focuses on the issue of assessing and determining leading methods for promoting finished product quality. We employ both theoretical and empirical tools for achieving this goal and for deriving relevant outcomes and policy implications. (shrink)

This essay highlights a methodological weakness in Foucault’s genealogy of neoliberalism often mistaken for a biographical shift in his philosophy. Naissance de la biopolitique is sometimes interpreted as evidence for Foucault’s conversion to neoliberalism, whereas its lack of critical acuity stems rather from its methodological limitations. Through a discussion of the “neoliberal conversion”-thesis, I highlight those limitations. Though Foucault’s appreciative tone in his neoliberalism lectures is surprising, his aim is mainly to defamiliarize readers from the dominant mode of neoliberal rationality (...) so that they can affirm the creative potential to foster new conducts, new identities, and new rationalities. Foucault did not convert to neoliberalism, but sought to destabilise it by revealing its historical contingency. However, as Foucault’s surprisingly positive tone shows, this strategy is insufficient for combatting neoliberalism. There is an elective affinity between Foucault’s own politics of creative self-reinvention and neoliberalism’s promise of a non-invasive, post-disciplinary government by indirect economic incentives alone. Foucault’s libertine stance toward subjectivity hence seems easily integrated into a neoliberal conduct of conducts. I propose to supplement Foucault’s genealogical method as he deploys it in Naissance de la biopolitique with an immanent critique of neoliberalism from the perspective of the governed. Rather than investigating neoliberal rationality as a promising endeavour for the future, we can study the real-life implementations of neoliberalism and their effects on subjective conducts. Neoliberal rationality is involved in a permanent struggle to shape the conduct of conducts along entrepreneurial and competitive lines, but subjects are refractory living beings whose conducts are not so simply transformed. Neoliberalism has had to give up its post-disciplinary aspirations and turn to the power of discipline and abandonment to enforce neoliberal norms of conduct. Neoliberalism has transformed into a negative biopolitics that sacrifices the lives of unproductive subjects as collateral damage to the overall welfare of the population. Immanent critique thereby reveals how subjects are pushed beyond their limits until neoliberal norms of conduct become unbearable. This intolerability of neoliberalism cannot be directly deduced from the writings of Becker, Friedman, or Hayek.111 It becomes manifest in the confrontation between neoliberal rationality and the material living bodies of finite human beings unable to be stretched in the ways neoliberalism requires. (shrink)

Nanotechnology (henceforth NT) is a rapidly advancing field with the potential of revolutionizing diverse areas such as electronics, healthcare, transport and energy production. NT products and applications come with (potential) benefits and (potential) harms. The presence of potential harms calls for regulation. Both under- and overregulation – I argue – are morally undesirable. In the case of underregulation, stakeholders fall victim to the harmful effects of the technology. In the case of overregulation, stakeholders are deprived of the benefits of the (...) technology. In this chapter, I identify the biases and factors that lead to under- and overregulation and offer solutions in response. More precisely, I argue that a lack of specific regulation, the presence of conflicts of interest and short-term economic incentives could lead to the underregulation of NT products and applications. Conversely, I argue that a negativity bias, harm aversion, the fear of opening ‘Pandora’s box’ and the intuition that what is natural is good and what is artificial (human-made) is bad could lead to overregulation. To avoid these pitfalls and the woes of under- and overregulation following in their wake, we need to set up a process – which I describe – in which policymakers and independent scientists closely collaborate. (shrink)

Today, dramatically increasing economic inequality, imminent climatological calamity, and a global pandemic now place the timeless debate over capitalism into stark relief. Though many seek to pin the blame on capitalism’s excesses, they would do well to recall the historical record of socialism’s deficiencies, namely, stifling innovation, lumbering inefficiency, and stagnation. Fortunately, our moral psychology affords a middle way between these two extremes. For while economic incentives have a tendency to let our civic and prosocial impulses atrophy (...) from disuse, these can also be rekindled when we are faced with highly compelling reasons to think and act for the greater good of all concerned. The coronavirus pandemic now unfolding might well offer us an opportunity to instill a culture of heightened moral self-awareness spurring a more virtuous form of capitalism. (shrink)

There is a plurality of theoretical approaches, methodological tools, and explanatory strategies in the social sciences. Different fields rely on different methods and explanatory tools even when they study the very same phenomena. We illustrate this plurality of the social sciences with the studies of crowds. We show how three different takes on crowd phenomena—psychology, rational choice theory, and network theory—can complement one another. We conclude that social scientists are better described as researchers endowed with explanatory toolkits than specialists of (...) some specific social domain. Social scientists’ toolkits are adapted for identifying and specifying the role of specific causal factors among the multiple factors that produce social phenomena. These factors can be, in a nonexclusive way, economic incentives, psychological processes, the ecology, or aspects of the social and cultural environment. The plurality of methods and theories in the social sciences flies in the face of the project to unify the sciences associated with the positivists of the nineteenth and twentieth centuries. Yet, the compatibility and consilience of theories and practices still have epistemic value: they enable the development of more powerful and robust theories and they allow the advent of interdisciplinary studies. We present the integrative stance as the will to improve compatibility and consilience across fields, yet recognize that the plurality of causes of social phenomena invite a diversity of methodological and theoretical tools. We conclude by characterizing naturalism as an integrative stance applied to fields that belong to the social science and to the natural sciences. (shrink)

Mark Pennington’s Robust Political Economy is a systematic exposition of a framework for analyzing institutional performance. The Robust Political Economy framework evaluates institutions according to their ability to solve knowledge and incentive problems. On grounds of robustness, Pennington combines insights from Austrian market-process theory and public-choice theory to defend classical liberalism from several compelling critiques. These include theories of market failure in economics; communitarian, deliberative-democratic, and liberal-egalitarian theories of justice; and concerns with social capital, domestic and international poverty, and ecology.

The present paper argues that a right to work, defined as social and legal guarantees to fair conditions of employment, should be an essential part of a democratic state with market arrangements. This argument proceeds along the following lines. First, I reconstruct an account of rights that defends the “correlativity” thesis of rights and duties. The basic idea is that a social member’s legitimate demand to something of value, such as gainful employment, implies duties on the part of others to (...) respect and fulfill it. These duties include the following with regard to that demand: avoiding actions that cause the harm, protecting it against standard threats, and otherwise providing aid in case it is deprived. Second, I sketch an outline of what a right to work will entail in terms of the correlative duties just described. This means that respect and fulfillment of the demand will require both social members and the democratic state alike to guarantee fair conditions of employment: first, by forbearing from actions that deprive members of access to work; and second, by protecting members against threats of deprivation and aiding them when they are so deprived. Third, I answer some ethical and empirical objections to the idea of a right to work: that it violates the legal rights of owners and employers, fails to impart self-respect, lacks economic efficiency, and erodes human capital by undermining competitive incentives. Finally, I make some concluding observations that a democratic right to work so conceived is ethically and economically superior to alternative arrangements that neither respect nor fulfill these correlative duties to avoid harm, protect against threats, and provide aid in cases of deprivation. (shrink)

Aesthetic theorists often interpret and understand works of art through the social and political context that creates and inspires the work. The recent economic recessions, and the accompanying austerity measures in many European countries, provide an interesting test case for this contextual understanding. Economists debate whether or not spending on entertainment and arts drops during times of recession and austerity. Some economists assume that spending will decline in times of austerity, but others point to evidence that spending on creative (...) arts and entertainment remains steady and even increases during a recession because of the relief and escapism that the arts provide. Tax incentives and production rights are often given to filmmakers in the United States; in hopes that such projects will enliven a local economy and provide work for a local creative community. In the context of recent austerity measures in Greece and Spain, new and creative ways for members of the arts community to bring about new projects, and fund them in ways that critique political leadership, have emerged. Following Richard Wollheim’s classic aesthetic theory of “criticism as retrieval,” we should be mindful of the cultural values that are at stake in the creativity-culture market now being created. In any case, some scholars estimate that austerity measures in many countries will last until 2020, giving us ample opportunity to be even more “creative” with both financial incentives and artistic achievements. Keywords: Austerity, Cultural Economy, Creative Class, Tax Incentives, Aesthetics, Microtheatres, Entertainment. (shrink)

When studying the feasibility and justice of basic income, researchers usually assume that policymakers would be introducing the unconditional benefit to a closed economic entity. When contemplating the introduction of a universal policy, few researchers take into consideration the fact that citizens and foreigners migrate, and that this movement alters the size and skill structure of the population. This article addresses this oversight by analyzing how basic income schemes based on residence or citizenship may affect tax base, wages, and (...) employment while incorporating migration incentives. The discussion is based upon neoclassical labor supply and migration theory and informed by the conjectured economic effects from a normative perspective. This research suggests that a basic income would create migration incentives that reduce the tax base, leading us to question this policy’s feasibility. Moreover, the flow-on effects of migration call into question the justice of both residence-based and citizenship-based basic income schemes. Therefore, this article sheds light on how basic income’s feasibility and justice relate to each other and identifies the benefits and further opportunities for interdisciplinary social policy research. (shrink)

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 (...) services. This is too restrictive. In particular, people may be concerned with the outcomes of others, and they may be concerned to follow ethical principles. I distinguish weak trustworthiness, which places no restrictions on B’s motivation for doing X, from strong trustworthiness, where the behaviour must have a particular non-selfish motivation, in finance the fiduciary commitment to promote the interests of the truster. I discuss why strong trustworthiness may be more efficient and also normatively preferable to weak. In finance, there is asymmetric information between buyer and seller, which creates a need for trustworthy assessment of products. It also creates an ambiguity about whether the relationship is one of buyer and seller, governed by caveat emptor, or a fiduciary relationship of advisor and client. This means that there are two possible reasons why trust may be breached: because the trustee didn’t realise that the truster framed the relationship as a fiduciary one, or because the trustee did realise but actively sought to take advantage of the trust. Correspondingly, there are two possible types of agent: normal people who are not always self-regarding and who are trust responsive (if they believe that they are being trusted then they are likely to fulfill that trust), and knaves, after Hume’s character who is always motivated by his own private interest. We can increase the trustworthiness of normal people by getting them to re-frame the situation as one of trust, so they will be strongly trustworthy (i.e. change of institutional culture), and by providing non-monetary incentives (the correct choice of incentive will depend on exactly what their non-selfish motivation is). Knaves need sanctions, which can make them weakly trustworthy. However, this is a delicate balance because sanctions can crowd out normative frames. We can also increase the trustworthiness of financiers by making finance less attractive to knaves; changing the mix of types in finance could help support the necessary cultural change. (shrink)

Epistemic burdens – the nature and extent of our ignorance (that and how) with respect to various courses of action – serve to determine our incentive structures. Courses of action that seem to bear impossibly heavy epistemic burdens are typically not counted as options in an actor’s menu, while courses of action that seem to bear comparatively heavy epistemic burdens are systematically discounted in an actor’s menu relative to options that appear less epistemically burdensome. That ignorance serves to determine what (...) counts as an option means that epistemic considerations are logically prior to moral, prudential, and economic considerations: in order to have moral, prudential, or economic obligations, one must have options, and epistemic burdens serve to determine our options. One cannot have obligations without doing some epistemic work. We defend this claim on introspective grounds. We also consider how epistemic burdens distort surrogate decision-making. The unique epistemology of surrogate cases makes the priority of the epistemic readily apparent. We then argue that anyone who accepts a principle similar to ought implies can is committed to the logical priority of the epistemic. We also consider and reject several possible counterarguments. -/- . (shrink)

The proposal on offer is a radical form of egalitarianism. Under it, each citizen receives the same income, regardless of profession or indeed whether he or she works or not. This proposal is bad for two reasons. First, it is inefficient. It would eliminate nearly all incentive to work, thereby shrinking national income and leaving all citizens poorly off (albeit equally poorly off). I illustrate this inefficiency via an indifference curve analysis. Second, the proposal would be regarded as unjust by (...) almost everyone. The empirical work on justice makes this plain. Equal pay for equal work is desirable; equal pay no matter what is something else entirely. It is an idea not likely to find adherents. (shrink)

We apply the analysis that we have developed over the course of several publications on the significance of ignorance for decision-making, especially in surrogate (and, thus, in political) contexts, to political decision-making, such as it has been, during the COVID-19 pandemic (see Scheall 2019; Crutchfield and Scheall 2019; Scheall and Crutchfield 2020; Scheall 2020). Policy responses to the coronavirus constitute a case study of the problem of policymaker ignorance. We argue that political responses to the virus cannot be explained by (...) assuming that the interests of policymakers were at loggerheads with those of their constituents at the beginning of the crisis. In order to explain the responses of policymakers, it is necessary to recognize the effects of relevant ignorance on their incentives to pursue different policy objectives. We discuss the knowledge that policymakers required at the start of the pandemic in order to deliberately realize the goal of limiting overall human suffering and the spontaneous forces that could have facilitated the realization of this goal. The problem of policymaker ignorance implies that policymakers have not earnestly pursued the goal of limiting overall suffering due to the novel coronavirus, but have repeatedly resorted to the pursuit of relatively less epistemically burdensome goals. The problem of policymaker ignorance explains why policymakers have focused primarily on limiting one kind of suffering – physical suffering due to the virus – and have mostly ignored related kinds of suffering, i.e., the economic, sociological, psychological, and physical suffering caused by policies to limit physical suffering from the virus. The problem of policymaker ignorance also helps to explain why policymakers relied on the relatively blunt instrument of economic lockdown rather than more focused protection policies, and why they continue to resort to lockdowns, despite the emerging scientific evidence of their ineffectiveness at mitigating physical suffering due to the virus. (shrink)

A series of recent developments points towards auditing as a promising mechanism to bridge the gap between principles and practice in AI ethics. Building on ongoing discussions concerning ethics-based auditing, we offer three contributions. First, we argue that ethics-based auditing can improve the quality of decision making, increase user satisfaction, unlock growth potential, enable law-making, and relieve human suffering. Second, we highlight current best practices to support the design and implementation of ethics-based auditing: To be feasible and effective, ethics-based auditing (...) should take the form of a continuous and constructive process, approach ethical alignment from a system perspective, and be aligned with public policies and incentives for ethically desirable behaviour. Third, we identify and discuss the constraints associated with ethics-based auditing. Only by understanding and accounting for these constraints can ethics-based auditing facilitate ethical alignment of AI, while enabling society to reap the full economic and social benefits of automation. (shrink)

A series of recent developments points towards auditing as a promising mechanism to bridge the gap between principles and practice in AI ethics. Building on ongoing discussions concerning ethics-based auditing, we offer three contributions. First, we argue that ethics-based auditing can improve the quality of decision making, increase user satisfaction, unlock growth potential, enable law-making, and relieve human suffering. Second, we highlight current best practices to support the design and implementation of ethics-based auditing: To be feasible and effective, ethics-based auditing (...) should take the form of a continuous and constructive process, approach ethical alignment from a system perspective, and be aligned with public policies and incentives for ethically desirable behaviour. Third, we identify and discuss the constraints associated with ethics-based auditing. Only by understanding and accounting for these constraints can ethics-based auditing facilitate ethical alignment of AI, while enabling society to reap the full economic and social benefits of automation. (shrink)

In this paper, we argue that the All Affected Principle generates a puzzle when applied to carbon tax referendums. According to recent versions of the All Affected Principle, people should have a say in a democratic decision in positive proportion to how much the decision affects them. Plausibly, one way of being affected by a carbon tax referendum is to bear the economic burden of paying the tax. On this metric of affectedness, then, people who pollute a lot are (...) ceteris paribus more affected than people who don’t, because the former stands to pay more in carbon taxes than the latter. Consequently, people who pollute a lot receive large voting power, while people who pollute a little receive little voting power. This is a puzzling distribution of voting power for several reasons. First, it is instrumentally counterproductive if the goal is to rectify damages to the climate. Second, it introduces prudential incentives for everyone to pollute more to gain voting power. Third, the relative difference in voting power between people who pollute a lot and people who don’t is puzzling from a desert-based point of view, since the former often make a serious effort to avoid polluting, while the latter don’t. (shrink)

Vietnam has exhibited rapid economic growth over thirty years of comprehensive economic reforms. However, about half of the country’s active population remains in agriculture. In order to characterize the role of agriculture and livestock in Vietnam’s structural transformation, we assess ongoing dynamics at three complementary scales: national, sectoral (agriculture and livestock) and local (district of Bavi). We show that the transition since Doi Moi (Renovation) has given rise to a political economy that provides incentives to industries and (...) services. However, labor abundance (due to population density) and limited land availability (85% of agricultural land is composed of less than 1 ha farms) have slowed the canonical structural transformation, and widened income inequality between agriculture and non-agricultural workers. In this ‘Lewis trap’ context, intensive livestock (as it is the case for aquaculture and horticulture) has played a significant role in increasing labor and land productivity, offering some perspectives to secure smallholder agricultural systems. But the emergence of those very intensive systems producing a lot of effluents has in the same time jeopardized sustainable development of rural and peri-urban areas. More recently, the political shift towards industrial corporate agriculture and large-scale farming has increased this pressure on the environment, and endangered inclusive agricultural development. Today, smallholder farming and rural communities encounter many challenges to exploit resources efficiently and gain access to input markets to achieve higher productivity and value added. To avoid the risk of poverty trap and to pursue a sustainable and inclusive development over the long run, deeper and wider reforms are needed based on smallholder viability, agroecological principles, and crop-livestock integration. (shrink)

A recent wave of academic and popular publications say that utopia is within reach: Automation will progress to such an extent and include so many high-skill tasks that much human work will soon become superfluous. The gains from this highly automated economy, authors suggest, could be used to fund a universal basic income (UBI). Today's employees would live off the robots' products and spend their days on intrinsically valuable pursuits. I argue that this prediction is unlikely to come true. Historical (...) precedent speaks against it, but the main problem is that the prediction fundamentally misunderstands how capitalism works—its incentives to increase or decrease production, its principles of income allocation, and the underlying conception of merit. (shrink)

Along with inefficiencies of mainstream sciences to find solutions for world problems, and besides the unpleasant difficulties in human lives due to such matters as poverty and economic gap, environmental pollution and climate change, the question raised is whether alternative sciences are contingent, which could preserve mainstream sciences’ potencies and avoid inefficiencies. Along this, religious incentives also seek ways to compromise sciences with divine learnings. To answer this question and benefit from alternative sciences, the contingency of heterodox sciences (...) has to be discussed. The article Starts by an introduction to efforts made towards Islamization of science, then contingency of heterodox sciences is analyzed from the metaphysics of science point of view. The pioneer inquiry in this regard is a less-known essay of Immanuel Kant titled Metaphysical Foundations of Natural Science. This article touches topics such as the relation of metaphysics to science, the contingency of metaphysics of science, the contingency of different metaphysics, and metaphysical foundations of social sciences. And later explains the contingency conditions of heterodox sciences and some advantages of metaphysical approach to these sciences. (shrink)

Willingness and readiness of people to do their jobs are among the key factors of a successful enterprise. In XXI century intellectual human labour is gaining unprecedented value and is being developed actively. The demand for intellectual labour calls forth an increasing number of jobs and professions that require an extensive preparation, a large number of working places, high level of integration of joint human efforts, growth of social welfare. These trends are becoming ever more pervasive and are spreading widely (...) in service industries, and that explains the rapid development of the latter when compared to the traditional areas of human activity. In its turn, it heightens the need for staff in service companies, supported by significant personnel turnover and a certain shortage of skilled professionals. These circumstances determine the need for developing a new concept of fostering staff motivation at the enterprises in the sphere of services. In order to reach the stated purpose while conducting our research into tourism and hospitality industry, as well as retail chains, we have examined the problems that arise in the process of staff motivation, and studied the foreign practice of motivating staff in hotels. The obtained analysis results enabled us to work out practical recommendations on improvement of the mechanism of tangible and intangible rewards in service companies, which are based on external and internal motivational factors. Additional attention in the article is paid to the statement that financial incentives should be based on key performance indicators (KPI). We give a detailed consideration to the classification of internal motivation incentives of the staff according to the terms of their realization, and give a schematic representation of the performance dynamics of the internal motivation model in service businesses. (shrink)

In 1990, Gilles Deleuze publishedPostscript on the Societies of Control, an introduction to the potentially suffocating reality of the nascent control society. This thirty-year update details how Deleuze’s conception has developed from a broad speculative vision into specific economic mechanisms clustering around personal information, big data, predictive analytics, and marketing. The central claim is that today’s advancing control society coerces without prohibitions, and through incentives that are not grim but enjoyable, even euphoric because they compel individuals to obey (...) their own personal information. The article concludes by delineating two strategies for living that are as unexplored as control society itself because they are revealed and then enabled by the particular method of oppression that is control. (shrink)

Deference in politics is often necessary. To answer questions like, “Should the government increase the federal minimum wage?” and “Should the state introduce a vaccine mandate?”, we need to know relevant scientific and economic facts, make complex value judgments, and answer questions about incentives and implementation. Lay citizens typically lack the time, resources, and competence to answer these questions on their own. Hence, they must defer to others. But to whom should they defer? A common answer is that (...) they should—or are at least permitted to—defer to co-partisans. This view initially seems attractive on both normative and empirical grounds. Against this, I argue that deference to co-partisans has overlooked moral and epistemic problems. In light of them, I propose several new ways to revise our expectations of citizens in a democracy both individually and institutionally. (shrink)

Online technologies enable vast amounts of data to outlive their producers online, thereby giving rise to a new, digital form of afterlife presence. Although researchers have begun investigating the nature of such presence, academic literature has until now failed to acknowledge the role of commercial interests in shaping it. The goal of this paper is to analyse what those interests are and what ethical consequences they may have. This goal is pursued in three steps. First, we introduce the concept of (...) the Digital Afterlife Industry, and define it as an object of study. Second, we identify the politico-economic interests of the DAI. For this purpose, we develop an analytical approach based on an informational interpretation of Marxian economics. Third, we explain the practical manifestations of the interests using four real life cases. The findings expose the incentives of the DAI to alter what is referred to as the “informational bodies” of the dead, which in turn is to be seen as a violation of the principle of human dignity. To prevent such consequences, we argue that the ethical conventions that guide trade with remains of organic bodies may serve as a good model for future regulation of DAI. (shrink)

Extant research suggests that individuals employ traditional moral heuristics to support their observed altruistic behavior; yet findings have largely been limited to inductive extrapolation and rely on relatively few traditional frames in so doing, namely, deontology in organizational behavior and virtue theory in law and economics. Given that these and competing moral frames such as utilitarianism can manifest as identical behavior, we develop a moral framing instrument—the Philosophical Moral-Framing Measure (PMFM)—to expand and distinguish traditional frames associated and disassociated with observed (...) altruistic behavior. The validation of our instrument based on 1015 subjects in 3 separate real stakes scenarios indicates that heuristic forms of deontology, virtue-theory, and utilitarianism are strongly related to such behavior, and that egoism is an inhibitor. It also suggests that deontic and virtue-theoretical frames may be commonly perceived as intertwined and opens the door for new research on self-abnegation, namely, a perceived moral obligation toward suffering and self-denial. These findings hold the potential to inform ongoing conversations regarding organizational citizenship and moral crowding out, namely, how financial incentives can undermine altruistic behavior. (shrink)

This essay offers a standard by which to assess the feasibility of market anarchism. In anarchist thought, the concept of feasibility concerns both the ability and the willingness of private defense agencies to liberate their clients from state oppression. I argue that the emergence of a single stateless pocket of effective, privately-provided defense for a “reasonable” length of time is sufficient to affirm feasibility. I then consider the failure of private defense agencies to achieve even this standard. Furthermore, I identify (...) five possible explanations for the conspicuous absence of private defense agencies. These explanations are entrepreneurial, technological, or economic in nature, or result from a lack of consumer demand or a lack of incentive for violence specialists to refrain from aggression. Of these, only an economic deficiency renders anarchism intrinsically unworkable. (shrink)

The study present how in the late 1930s-1940s a new, modern pension system was introduced in America without any theoretical basis, as a kind of arbitrary mix of existing pension systems, to replace the by then non-functioning “traditional pension system” in which working children maintained their ageing parents in exchange for having been raised. Later, in 1958, they found an ideology for the system, “solidarity between generations,” but this didn’t fit in with the system’s economic foundations, with the fact (...) that the modern, pay-as-you-go pension system distributes the profits of raising children amongst the older generation regardless of how much people have contributed to it. This made raising children unprofitable, which provided a strong incentive to avoid it, thus launching the ageing process. Moreover, the modern pension system, also as a result of ageing, is making increasingly large and uncovered promises to the retired generation. The system may be repaired by matching the asset side to the liabilities side, for example, by only promising a pension to those who have contributed to the system, and only to the extent of that contribution. Contribution payments are an obligation, the repayment of the cost of people’s upbringing, with relation to which no pension is automatically due. By doing so, the 3rd pillar of the modern pension system will also have been capitalized using a special kind of capital: human capital. (shrink)

According to the order ethics approach to business ethics, moral rules must be im-plemented by institutions that provide incentives for following the rules. As a minimal (normative) condition, these institutions must be able to motivate the homo eco-nomicus. But even if an institution passes this test, it will only motivate actual people (i.e. the homo psychologicus) to follow moral rules, if they have the relevant compe-tences and self-efficacy beliefs. Consequently, good institutional design includes com-prehensive change management. At this point (...) applied order ethics can draw on find-ings of psychology and experimental economics. It turns out, that role models can support self-efficacy beliefs and are thus more important for order ethics than has traditionally been assumed. (shrink)

This essay offers a standard by which to assess the feasibility of market anarchism. In anarchist thought, the concept of feasibility concerns both the ability and the willingness of private defense agencies to liberate their clients from state oppression. I argue that the emergence of a single stateless pocket of effective, privately-provided defense for a “reasonable” length of time is sufficient to affirm feasibility. I then consider the failure of private defense agencies to achieve even this standard. Furthermore, I identify (...) five possible explanations for the conspicuous absence of private defense agencies. These explanations are entrepreneurial, technological, or economic in nature, or result from a lack of consumer demand or a lack of incentive for violence specialists to refrain from aggression. Of these, only an economic deficiency renders anarchism intrinsically unworkable. (shrink)

This paper draws on Friedrich Nietzsche’s work to defend the (admittedly non-Nietzschean) conclusion that a non-liberal egalitarian society is superior in two ways: first, as a moral ideal, it does not rest on questionable claims about essential human equality and, second, such a society would provide the optimal psychological and political conditions for individual wellbeing, social stability, and cultural achievement. I first explain Nietzsche’s distinction between forms of egalitarianism: noble and slavish. The slavish form promotes equality, defined negatively as the (...) elimination of privilege. It is non-liberal in its prioritization of equality over the interests of the advantaged. Nietzsche rejects both slavish egalitarianism and liberalism for the same reasons: they questionably assume the equal value of all persons, and they harm cultural achievement, sacrificing the potential of those who are most valuable to cultural development to the interests of the majority. Noble egalitarianism, in contrast, exemplifies Nietzsche’s conception of justice as ‘equality among equals’. It demands that individuals of equal worth or power (such as members of an artistic or political elite) treat each other as what they, in fact, are: equals. It avoids asserting essential equality, demanding instead—against both slavish and liberal forms—respect on the basis of shared superiority. And it escapes the charge of harm to cultural development, commanding respect only where equality already exists. Although Nietzsche quickly assumes that ‘noble egalitarianism’ requires the rejection of all forms of universal egalitarianism, concluding that we should ‘never make equal what is unequal’, in fact it only entails the rejection of slavish methods: equalization through harm to the advantaged. However, non-liberal forms of egalitarianism can be ‘noble’, promoting equality without harm to the advantaged—through, for example, unequal distribution of resources, the equalization of economic opportunities, and economic regulation to prevent the creation of substantial wealth disparities. If egalitarianism can ‘make equal’ without slavish methods, then Nietzsche’s demand for ‘equality for equals’ applies to the newly equal, too. More importantly, his moral psychology of power—the view that our source of happiness and incentive to self-development is the feeling of power in relation to equal resistance or ‘opponents who are our equals’ —supports the superiority of a nobly-achieved, non-liberal egalitarian society. For achieved, practical equality of wealth and opportunity would optimize conditions for the feeling of power: a balance of equal, oppositional powers serving as mutual limitation and resistance. Such a society is superior in three ways. First, it maximizes social happiness by promoting and maintaining the feeling of power in all. Liberal and aristocratic societies, in contrast, allow radical inequalities that not only diminish the power of the disadvantaged, but diminish the opportunities of the advantaged to encounter equal resistance, thus undermining the happiness of all. Second, it promotes social stability by preserving a balance of powers that prevents domination and exploitation, in contrast to the inevitable class conflicts of aristocratic and liberal societies. Finally, it promotes cultural achievement, since the feeling of power in relation to proportional resistance is the psychological incentive for self-development and cultural achievement. (shrink)

Following Anthony Downs’s classic economic analysis of democracy, it has been widely noted that most voters lack the incentive to be well-informed. Recent empirical work, however, suggests further that political partisans can display selectively lazy or biased reasoning. Unfortunately, political knowledge seems to exacerbate, rather than mitigate, these tendencies. In this paper, I build on these observations to construct a more general skeptical challenge which affects what I call creedal beliefs. Such beliefs share three features: (i) the costs to (...) the individual of being wrong are negligible, (ii) the beliefs are subject to social scrutiny, and (iii) the evidential landscape relevant to the beliefs is sufficiently complex so as to make easy verification difficult. Some philosophers and social scientists have recently argued that under such conditions, beliefs are likely to play a signaling, as opposed to a navigational role, and that our ability to hold beliefs in this way is adaptive. However, if this is right, I argue there is at least a partial debunker for such beliefs. Moreover, this offers, I suggest, one way to develop the skeptical challenge based on etiological explanation that John Stuart Mill presents in On Liberty when he claims that the same causes which lead someone to be a devout Christian in London would have made them a Confucian in Peking. Finally, I contend that this skeptical challenge is appropriately circumscribed so that it does not over-extend in an implausible way. (shrink)

While Hume had a favorable opinion of the new commercial society, Reid envisioned a utopian system that would eliminate private property and substitute the profit incentive with a system of state-conferred honors. Reid’s predilection for a centralized command economy cannot be explained by his alleged discovery of market failures, and has to be considered in the context of his moral psychology. Hume tried to explain how the desire for gain that motivates the merchant leads to industry and frugality. These, in (...) their turn, benefit all society. Reid still saw the desire for money as a degenerate form of the desire for power. The contrast between Hume and Reid, however, has not to be taken too far. On some particular matters of economic policy, such as paper credit, Hume and Reid eventually came to similar views. (shrink)

Are intellectual property rights for talented people justified by Rawls’ criteria of justice? In this paper, I argue that Rawls’ theory of justice is ill-equipped to answer this question. Tailored for rival goods and, as a result, centred on the distribution of benefits, it tends to restate questions of justice about unequal rights as questions about economic inequalities. Therefore, it lacks the tools necessary to distinguish among different forms of incentives for talented people. Once social and economic (...) inequalities observe equality of opportunity and improve the least advantaged, the theory is indifferent as to whether talented people are allowed to compete for monopoly rights or for direct financial reward. (shrink)

During the current financial crisis, the need for an alternative to a laissez-faire ethics of capitalism (the Milton Friedman view) becomes clear. I argue that we need an order ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. -/- I will point to some aspects of order ethics which highlight the importance of rules, e.g. global rules for the financial markets. In this regard, order ethics (“Ordnungsethik”) is the complement of the (...) German conception of “Ordnungspolitik” which also stresses the importance of a regulatory framework. This framework is needed not to tame the market, but to make it more profitable in the long run. -/- The conception of order ethics relies heavily on contractarianism, especially on James Buchanan’s work. Unlike many other conceptions of ethics, it does not start with an aim to achieve, but rather with an account of what the social world – in which ethical norms have to be implemented – is like. Our social world is different from the pre-modern one. Pre-modern societies played zero-sum games in which people could only gain significantly at the expense of others. And the types of ethics that we are still used to today have been developed within these pre-modern societies. -/- Modern societies, by contrast, can be characterised – by economists and other social theorists alike – as societies with continuous growth. This growth has only been made possible by the modern competitive market economy which enables everyone to pursue his own interests within a carefully devised institutional system. In this system, positive sum games are played, which makes it in principle possible to improve the position of every individual at the same time. Most kinds of ethics, however, resulting from the conditions of pre-modern societies, ignore the possibility of win-win-situations and instead require us to be moderate, to share, to sacrifice, as this would have been functional in zero-sum games. These conceptions distinguish – in more or less strict ways – between self-interest and altruistic motivation. Self-interest, more often than not, is ultimately seen as something evil. -/- Such an ethics cannot be functional in modern societies. Ethical concepts lag behind. Within zero-sum games, it was necessary to call for temperance, for moderate profits, or for a condemnation of lending money at interest. Within positive-sum games, however, the morally desired result of a social process cannot be brought about by changes in motivation, by switching from ‘egoistic’ to ‘altruistic’ motivation. The second theoretical element introduced by order ethics is the distinction between actions and rules, which was already mentioned. Traditional ethics concerns actions: It calls directly for changes in behaviour. This is a consequence of pre-modern conditions as reconstructed before: People in the pre-modern world were only able to control their actions, not so much however the conditions of their actions. In particular, rules like laws, constitutions, social structures, the market order, and also ethical norms have remained stable for centuries. In modern societies, this situation has changed entirely. The rules governing our actions have increasingly come under our control. -/- In this situation, ethics has to focus on rules. Morality must be incorporated in incentive-compatible rules. Direct calls for changes in behaviour without changes in the rules lead only to an erosion of compliance with moral norms. Individuals that continue to behave ‘morally’ will be singled out, because the incentives have not been changed. Moral norms which are to be justified cannot require people to abstain from pursuing their own advantage. People abstain from taking ‘immoral’ advantages only if adherence to ethical norms yields greater benefits over the planned sequence of actions than defection in the single case. Thus ‘abstaining’ is not abstaining in the long run, it is rather an investment in expectations of long-term benefits. By adhering to ethical norms, I become a reliable partner for interactions. The norms do indeed constrain my actions, but they simultaneously expand my options in interactions. And people consent to rules only if these rules hold greater advantages for them, at least in the long run. -/- In general, ethics cannot require people to abandon their individual calculation of advantages. However, it may suggest improving one’s calculation, by calculating in the long run rather than in the short run, and by taking into account the interests of our fellows, as we depend on their acceptance for reaching an optimal level of well-being, especially in a globalized world full of interdependence. -/- The problem of implementation can now be placed at the beginning of a conception of order ethics, justified with reference to the conditions of modern societies I have sketched. Under the conditions of pre-modern societies, an ethics of temperance had evolved that posed simultaneously the problems of implementation and justification. The implementation of well-justified norms or standards could then be regarded as unproblematic, because the social structures allowed for a direct face-to-face enforcement of norms. Pre-modern societies not only favored an ethics of temperance, they also had the instrument of face-to-face-sanctions within their smaller and non-anonymous communities. This instrument is no longer functional in modern anonymous societies, and so we have to face up to the problem of implementation right at the start of our ethical conception. Simultaneously, an order ethics relies on the implementation of sanctions for enforcing incentive-compatible rules. In modern societies, rules and institutions, to a large extent, must fulfil the tasks that were, in pre-modern times, fulfilled by moral norms, which in turn were sanctioned by face-to-face sanctions. Norm implementation in modern societies thus works by setting adequate incentives in order to prevent the erosion of moral norms, which would happen if ‘moral’ actors were systematically threatened with exploitation by other, less ‘moral’ actors. -/- This conception of order ethics is then elaborated further in the area of business ethics. -/- . (shrink)

Objective: To assess the relation between autocratisation—substantial decreases in democratic traits (free and fair elections, freedom of civil and political association, and freedom of expression)—and countries’ population health outcomes and progress toward universal health coverage (UHC). -/- Design: Synthetic control analysis. -/- Setting and country selection: Global sample of countries for all years from 1989 to 2019, split into two categories: 17 treatment countries that started autocratising during 2000 to 2010, and 119 control countries that never autocratised from 1989 to (...) 2019. The treatment countries comprised low and middle income nations and represent all world regions except North America and western Europe. A weighted combination of control countries was used to construct synthetic controls for each treatment country. This statistical method is especially well suited to population level studies when random assignment is infeasible and sufficiently similar comparators are not available. The method was originally developed in economics and political science to assess the impact of policies and events, and it is now increasingly used in epidemiology. -/- Main outcome measures: HIV-free life expectancy at age 5 years, UHC effective coverage index (0-100 point scale), and out-of-pocket spending on health per capita. All outcome variables are for the period 1989 to 2019. -/- Results: Autocratising countries underperformed for all three outcome variables in the 10 years after the onset of autocratisation, despite some improvements in life expectancy, UHC effective coverage index, and out-of-pocket spending on health. On average, HIV-free life expectancy at age 5 years increased by 2.2% (from 64.7 to 66.1 years) during the 10 years after the onset of autocratisation. This study estimated that it would have increased by 3.5% (95% confidence interval 3.3% to 3.6%, P<0.001) (from 64.7 to 66.9 years) in the absence of autocratisation. On average, the UHC effective coverage index increased by 11.9% (from 42.5 to 47.6 points) during the 10 years after the onset of autocratisation. This study estimated that it would have increased by 20.2% (95% confidence interval 19.6% to 21.2%, P<0.001) (from 42.5 to 51.1 points) in the absence of autocratisation. Finally, on average, out-of-pocket spending on health per capita increased by 10.0% (from $4.00 (£3.1; €3.4) to $4.4, log transformed) during the 10 years after the onset of autocratisation. This study estimated that it would have increased by only 4.4% (95% confidence interval 3.9% to 4.6%, P<0.001) (from $4.0 to $4.2, log transformed) in the absence of autocratisation. -/- Conclusions: Autocratising countries had worse than estimated life expectancy, effective health service coverage, and levels of out-of-pocket spending on health. These results suggest that the noticeable increase in the number of countries that are experiencing democratic erosion in recent years is hindering population health gains and progress toward UHC. Global health institutions will need to adjust their policy recommendations and activities to obtain the best possible results in those countries with a diminishing democratic incentive to provide quality healthcare to populations. (shrink)

Payment models directly impact the way patients experience care. Historically, payment model innovations have been examined mostly from economic, organizational, and public health lenses. Financial incentives exist in all healthcare systems, whether a socialized, private or public insurance, or single payer system. This article examines the alignment of current predominant payment models of fee-for-service, capitation, and value-based payments with patient care ethics. The volume-based incentive of fee-for-service is misaligned with patient care, while capitation is a relatively neutral and (...) highly modifiable model. Value-based payments offer a unique benefit in improving patient agency and have a larger benefit of cost control. However, no model adequately addresses health disparities, and a larger consideration for justice is needed by payment model designers when considering incentives. In consideration of related values, bioethics must expand the discourse around patient care ethics to cover patient interactions with the health system and market forces outside the clinical context. (shrink)

In this Article, I propose a novel law and economics explanation of a deeply puzzling aspect of business organization in market economies. Why are virtually all firms organized as capital-managed and -owned (capitalist) enterprises rather than as labor-managed and -owned cooperatives? Over 150 years ago, J.S. Mill predicted that efficiency and other advantages would eventually make worker cooperatives predominant over capitalist firms. Mill was right about the advantages but wrong about the results. The standard explanation is that capitalist enterprise is (...) more efficient. Empirical research, however, overwhelmingly contradicts this. But employees almost never even attempt to organize worker cooperatives. I critique the explanations of the three leading analysts of the subject (N. Scott Arnold, Henry Hansmann, and Gregory Dow), all of whom offer are different transactions cost accounts, as logically defective and empirically inadequate. I then propose an explanation that has been oddly neglected in the literature, that the rarity of cooperatives is explained by the collective action problem identified by writers such as Mancur Olson. Labor management is a public good that generates the n-person prisoner’s dilemma which gives rational actors the incentive to create it in suboptimal (or no) amounts. I support this by reference to the empirical facts about the origin of existing cooperatives and show that this explanation requires no strong version of a questionable rational choice theory. This explanation is supplemented by the mere exposure or familiarity effect derived from social and cognitive psychology, which turns on the fact that labor managed firms are rare, in part because of the public goods problem, thus unfamiliar, which makes them less attractive and thus more likely to be rare. My account points advocates of labor management towards solutions such as institutional changes in incentives, which, however, themselves involve public goods issues. (shrink)

Globalisation has brought immense changes to the national and international economic structure. The digital revolution and ICT expansion positively impacted the sharing economy development. In this regard, the most avant-garde countries in sharing economy seem to be the advanced countries. However, transitory countries such as Albania are making satisfactory progress as well. While being part of some global cases of sharing economy, Albania is also experiencing domestic incentives related with. The sectors involved in sharing economy are affiliated to (...) different domains, including agriculture, tourism, healthcare, transportation, etc. Albania strongly embraced technology because of its relatively young population and the flexible education system adopting to the market needs. The Albanian government is doing well on the promotion and usage of public platforms, which are supportive of the sharing concept. Although not specifically for the sharing economy, the government of Albania has released some useful strategic plans to embed the necessary instruments and infrastructure to digitalisation. However, there is more to do for sharing economy in specific terms. The collaboration of three actors, businesses-academia-government, would bring to the Albanian market new capacities and additional added values. (shrink)

In this paper I study how the theoretical categories of consumption theory were used by Milton Friedman in order to classify empirical data and obtain predictions. Friedman advocated a case by case definition of these categories that traded theoretical coherence for empirical content. I contend that this methodological strategy puts a clear incentive to contest any prediction contrary to our interest: it can always be argued that these predictions rest on a wrong classification of data. My conjecture is that this (...) methodological strategy can contribute to explain why Friedman’s predictions never generated the consensus he expected among his peers. (shrink)