The Market Failures Approach (MFA) is one of the leading theories in contemporary business ethics. It generates a list of ethical obligations for the managers of private firms that states that they should not create or exploit market failures because doing so reduces the efficiency of the economy. Recently the MFA has been criticised by Abraham Singer on the basis that it unjustifiably does not assign private managers obligations based on egalitarian values. Singer proposes an extension (...) to the MFA, the Justice Failures Approach (JFA), in which managers have duties to alleviate political, social, and distributive inequalities in addition to having obligations to not exploit market failures. In this paper I describe the MFA and JFA and situate them relative to each other. I then highlight a threefold distinction between different types of obligations that can be given to private managers in order to argue that a hybrid theory of business ethics, which I call the MFA +, can be generated by arguing that managers have obligations based on efficiency and duties based on equality to the extent that these latter obligations do not lead to efficiency losses. This argument suggests a novel theoretical option in business ethics, elucidates the issues that are at stake between the MFA and the JFA, and clarifies the costs and benefits of each theory. (shrink)

Politics, Philosophy & Economics, Volume 21, Issue 2, Page 165-189, May 2022. It is generally acknowledged that a certain amount of state intervention in health and health care is needed to address the significant market failures in these sectors; however, it is also thought that the primary rationale for state involvement in health must lie elsewhere, for example in an egalitarian commitment to equalizing access to health care for all citizens. This paper argues that a complete theory of (...) justice in health can be derived from a commitment to correcting market failure, or in other words promoting Pareto-efficiency, in the domain of health. This approach can address familiar problems around access to care, as well as problems related to resource allocation and rationing, the control of health care costs, and the foundations of public health. Egalitarian theories of justice in health cannot make sense of the depth and pervasiveness of state involvement in health and health care; only a theory rooted in the need to correct market failure can. (shrink)

According to the Market Failures Approach to business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have a professional duty not to undermine the institutional setting that defines their role, namely the competitive (...) market. This answer is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents. (shrink)

The market failures approach to business ethics has recently garnered substantial critical attention (see, e.g., Cohen and Peterson 2019; Moriarty 2020; Steinberg 2017; Hsieh 2017; von Kriegstein 2016; Smith 2018; Endorfer and Larue 2022; Singer 2018). Though precursors of this view can be found in the literature (e.g., McMahon 1981; Friedman 1970), it was Joseph Heath (2004, 2006, 2014, 2023) who developed the approach and gave it its name. The market failures approach (henceforth: MFA) is concerned (...) with the ethical obligations of managers of firms (Heath 2014, 69). Roughly, it holds that managers ought not to conduct their businesses in a way that exploits market failures. “Market failure” is a technical term, meaning any failure of the conditions of the first fundamental welfare theorem, sometimes called the “Pareto conditions” (see Arrow 1951). The theorem states that if the Pareto conditions hold, then the market equilibrium will use society’s scarce resources efficiently, meaning that no one could be made better-off without making anyone else worse off. Efficiency, according to Heath (2014, chapter 7), is the implicit morality of the market. We coordinate much of our shared activity using markets, Heath claims, because of their ability to produce efficient results. Markets are good forms of social organization, according to Heath, because they are the best way to promote our values given empirical facts about the frailties of human psychology and the informational constraints that we face. As such, managers ought not compromise the very conditions that justify a market economy by profiting from breakdowns in the market’s efficiency. Managers are permitted to maximize profits, so long as they do not violate the market’s norm of efficiency in so doing. This is because the fundamental justification for the profit motive is that it is necessary for the operation of the price system which is essential to the efficiency properties of markets. In this paper, I will argue that the MFA is more general than even Heath himself claims. The MFA describes the professional obligations of managers, but the view I develop, the generalized market failures approach, describes the obligations of all market participants. Since efficiency is the implicit morality of the market, it binds not just managers, but all market participants, including consumers, investors and workers. Market participants are permitted to maximize the benefit they gain from market interactions, as long as they do so in a way that does not take advantage of any market failures. Generalizing the MFA in this way has three benefits: first, we gain a unified understanding of the ethics of non-managerial market roles; second, we will develop an even better understanding of the duties of managers; finally, it gives us the resources to respond to some familiar objections to the MFA found in the literature. In the next section, I will further motivate the MFA and explain how this motivation can be easily generalized to other market roles. Importantly, one can avoid benefiting from a market failure in two distinct ways: by avoiding transactions that exploit market failures or by transacting in such markets and then remediating the harm done, by compensating those negatively affected by the market failure. This section concludes by discussing how the remediation duties are to be split between the transacting parties and how to identify the parties to whom compensation is owed. In section 3, I use the tools of the generalized MFA to develop a unified ethics of consumption, investment and labor, respectively. This is the basis of a grand abductive argument for the generalized MFA. The view is strongly supported by the fact that it provides attractive and unifying explanations of our obligations in domains as variegated as carbon offsetting, CEO compensation, the reparations white Americans owe to black Americans and occupational licensure. Section 4 briefly concludes. (shrink)

This article reviews and criticizes Joseph Heath’s market failures approach (MFA) to business ethics. Our criticism is organized into three sections. First, we argue that, even under the ideal assumptions of perfect competition, when markets generate Pareto-efficient distributions, Heath’s approach does not rule out significant harms. Second, we show that, under nonideal conditions, the MFA is either too demanding, if efficiency is to be attained, or not sufficiently demanding, if the goal of Pareto efficiency is abandoned. Finally, we (...) argue that Heath’s appeal to regulations and specific moral requirements as a remedy for market failures is unlikely to safeguard efficiency and exposes a number of general worries regarding the moral force of the MFA. We end this article with a constructive suggestion on how to adjust the MFA to avoid these problems while preserving its contractualist and Paretian spirit. (shrink)

This discussion revises and extends Jonny Anomaly's ‘public goods’ account of public health ethics in light of recent criticism from Richard Dees. Public goods are goods that are both non-rival and non-excludable. What is significant about such goods is that they are not always provided efficiently by the market. Indeed, the state can sometimes realize efficiency gains either by supplying such goods directly or by compelling private purchase. But public goods are not the only goods that the market (...) may fail to provide efficiently. This point to a way of broadening the public goods account of public health to accommodate Dees' counterexamples, without abandoning its distinctive appeal. On the market failures approach to public health ethics, the role of public health is to correct public health-related market failures of all kinds, so far as possible. The underlying moral commitment is to economic efficiency in the sense of Pareto: if we can re-allocate resources in the economy so as to raise the welfare of some without lowering the welfare of any other, we ought to do so. (shrink)

This paper explores the notion that business calls for an adversarial ethic, akin to that of sport. On this view, because of their competitive structure, both sport and business call for behaviours that are contrary to ‘ordinary morality’, and yet are ultimately justified because of the goods they facilitate. I develop three objections to this analogy. Firstly, there is an important qualitative difference between harms risked voluntarily and harms risked involuntarily. Secondly, the goods achieved by adversarial relationships in sport go (...) beyond the function of sport, i.e. to entertain audiences. Thirdly, the most plausible account of the athlete’s motivational development starts with their love of the sport, which can explain a commitment to the sporting ethics in a way that is not paralleled in business. I close by drawing attention to the ways in which an Aristotelian conception of business ethics may be able to accommodate these objections. (shrink)

This paper focuses on the question of filtration through the perspective of “too much information”. It concerns Western society within the context of new media and digital culture. The main aim of this paper is to apply a philosophical reading on the video game concept of Selection for Societal Sanity within the problematics of cultural filtration, control of behaviors and desire, and a problematization of trans-individuation that the selected narrative conveys. The idea of Selection for Societal Sanity, which derives from (...) the first postmodern video game Metal Gear Solid 2: Sons of Liberty (2001), is applied into a philosophical framework based on select concepts from Bernard Stiegler’s writing and incorporating them with current events such as post-truth or fake news in order to explore the role of techne and filtration within social organizations and individual psyches. Alternate forms of behavior, which contest cultural paradigms, are re-problematized as tension between calculability and incalculability, or market value versus social bonding. (shrink)

The financial crisis of 2008–2009 presents us with the opportunity to not only understand what has happened in the markets but also to reflect on the purpose of the marketplace. Drawing from expert economic analyses, we first assess the central lesson of the crisis—the failure of self-regulation by rational self-interest to moderate externalized risk in financial markets. Second, we ask the philosophical question occasioned by the crisis concerning the moral meaning of economic activity: Is market exchange solely for the (...) sake of self-interest? Reflecting on the poetry of Kahlil Gibran and engaging with the recent encyclical of Pope Benedict XVI, we turn our attention from political economy to moral economy: the relationships among market exchange, self-interest, and the common good—and, in particular, the prior conditions of market exchange and their moral significance for the present crisis. (shrink)

I argue that capitalism presents a threat to “democratic contestation”: the egalitarian, socially distributed capacity to affect how, why, and whether power is used. Markets are not susceptible to mechanisms of accountability, nor are they bearers of intentions in the way that political power-holders are. This makes them resistant to the kind of rational, intentional oversight that constitutes one of democracy’s social virtues. I identify four social costs associated with this problem: the vulnerability of citizens to arbitrary interference, the insensitivity (...) of markets to relevant interests, failures of trust in the market system, and the inhibition of social deliberation about matters of public concern. I make general two suggestions about how we might ameliorate these problems: First, as a way of introducing some measure of intentionality to large-scale patterns of business activity, the reconceptualization of such activity as participation in larger group actions; second, the development of deliberative bodies that bring together business actors, policy experts, and diverse citizens in an effort to better characterize and transmit the public values that business should serve. (shrink)

The financial turmoil of the past several years has caused many to question the integrity, stability, and very purpose of financial systems which, in today’s world, represent a unique blend of primarily capitalism but also aspects of socialism and collectivism as well. A key factor contributing to this sustained period of economic upheaval has been the uncertainty surrounding capital markets – the fuel that powers all modern economies. Capital markets have, in the minds of many, come to represent the embodiment (...) of greed, unrestrained egoism, and exploitation of the vulnerable – conceptions at complete odds with the central values of social justice as set forth in both Christian and Jewish primary sources: caring for the poor, protecting the weak, and the promotion of justice. -/- In this paper I argue that capital markets, rather than being a means for the powerful to exploit the weak, have in fact become a force for social good in the aggregate. Indeed capital markets are, in fact, a social contract and as such must be governed by a set of normative ethical principles – both self imposed, and imposed by government regulation. I explore the ethical difficulties that have led to the systemic problems and market failures that lead to not only this current financial crisis, but literally all financial crises over the past eight hundred years. Capital markets, left to their own devices and without both self and governmental oversight, quickly become hotbeds of manipulation and exploitation. In order for markets to function properly, principles of basic fairness must become normative. It is when capital markets become unfair and unjust, that they fail. Thus, these markets must be structured in such a way as to 1) promote Rawl’s “Justice as Fairness” principle and 2) align the interests of market participants to produce universally beneficial market efficiency and stability. -/- Finally, I propose concrete ways in which the power of capital markets may be harnessed to promote the central moral values of Christian tradition and be used by people of faith to promote the ideals of social justice. (shrink)

Karl Polanyi in The Great Transformation diagnosed what had happened in the Nineteenth Century that led to poverty, increasingly wild economic fluctuations, increasingly severe depressions, and social dislocation and oppression on a massive scale – the market had been disembedded from communities which were then subjected to the imperatives of a supposedly autonomous market. In fact, such disembedding and imposition of these imperatives was a deliberate strategy developed as a means to impose exploitative relations on people, in opposition (...) to ideas of republican democracy. Recognizing this, after such disembedding had engendered a major global depression in the 1890s and an even more severe depression in the 1930s, along with two world wars, reformers largely succeeded in re-embedding markets. This achievement was fought by neoliberals, and their triumph in the 1970s was a really a project of reversion to the Nineteenth Century economic and political order, now upheld by much more powerful forces, including immensely powerful transnational corporations and financial institutions, corrupt politicians, and much more effective mind control industries. As in the Nineteenth Century, it has concentrated wealth and income, destabilized economies, and threatens a new Great Depression and, as a by-product of the tensions generated by global ecological destruction, possibly a new world war. As opposed to Marxist analyses, Polanyi’s analysis provided a much clearer goal to aim at that has not been discredited by the failures of supposedly communist countries. However, there are still huge problems to be overcome if we are to re-embed the market in communities, including the problem of grappling with the immense power of transnational corporations and financial institutions and those who serve them and the success they have had in corrupting the institutions and culture of democracy. This includes not only undermining the power of nations to control their economies and their subversion of democratic processes, but also in promoting passivity in the population to render them inert and powerless. In this paper I will examine proposals, such as those promoted by Arild Vatn in his book Institutions and the Environment, to develop institutions able to achieve this re-embedding. (shrink)

This paper addresses Joseph Heath’s attempt to derive moral obligations from the conditions that are specified by the model of the perfectly competitive market. Through his market failures approach to business ethics he argues that firms should behave as if they are operating in a perfectly competitive market. However, I argue that this derivation of moral obligations runs counter to the metaethical principle that moral actions need to be voluntarily chosen from a set of alternatives. To (...) the extent that Milton Friedman’s derivation follows the same lines, my objection is also applicable to his approach to business ethics. I bring out the fact that the conditions required by the model of the perfectly competitive market cannot be realized in the actual world and argue that this causes problems for any moral obligations that might follow. My objection is illustrated by an intuitive example of someone set to an impossible task. I also bring in a way that Heath could work around this objection, but I argue that this would imply the collapse of his approach into another kind of theory that he wishes to distinguish himself from. More deeply, I show that my metaethical objection has epistemological consequences that undermine the very basis of the model of the perfectly competitive market. I conclude by stating that we need a different conception of competition, pointing to the facts that such a perspective would need to take into account, and suggesting that the concept of rivalry is up to the job. (shrink)

This article explores the transition experience of Croatia from 1990 to the present, with emphasis on social attitudes towards the free-market system and how the legacy of communism has influenced people’s expectations of and views towards the economy. The anthropological position of man as homo economicus is of central importance, if one is to properly understand the forces at work in a transition society like Croatia. This position also has far-ranging implications for ethics and morality, as well as for (...) the general culture. Assisted by the insights of Catholic social teaching, in particular Pope Benedict XVI’s Caritas in Veritate, the article concludes with possible lessons from the failure of communism and the challenges of transition. (shrink)

Despite concerted efforts to nurture SMMEs through a number of methods, including LED initiatives, a high failure rate persists in South Africa. As the quest for a sustainable solution continues, this paper investigates the challenges that SMMEs face in the context of the Bushbuckridge Local Municipality (BLM). The quantitative approach was adopted for data collection. Through the use of a survey questionnaire, data were collected from a sample of fifty owners/managers who were reached through the stratified sampling technique. The study (...) singled out lack of financial assistance, managerial skills, inaccessible global markets as the most dominant challenges to the development of SMMEs apart from the high crime rate and the fear of xenophobia. Lack of technology and insufficient government support received far lesser approval from participants as these were perceived to have less impact on SMMEs growth. This paper draws attention to the ineffectiveness of LED programmes at the grassroots level with specific reference to rural municipalities. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

The transformation of universities from public institutions to transnational business enterprises has met with less resistance in Australia than elsewhere. Yet this transformation undermines the founding principles of Australian democracy. This democracy emerged in opposition to the classical form of free market liberalism that the neo-liberals have revived. The logical unfolding of social liberalism in Australia underpinned the development of both the system of wage fixing and the idea of public education as conditions for democracy. The lack of resistance (...) to the destruction of democracy, as it was originally understood in Australia, by successive neoliberal governments has been due largely to the decadent state of Australian universities. These had come to be dominated by a crude form of empiricist utilitarianism, making Australia peculiarly vulnerable to the ideologues of global free markets and the power of transnational corporations who have sought to transform language to equate the dominance of all facets of life by markets as a defence of democracy. Only through a recovery of the philosophical tradition upon which Australia was founded and the development of this tradition through process metaphysics, it is argued, can genuine democracy and Australia’s public institutions, be defended. (shrink)

The purpose of this study was to explore the benefits and challenges of strategic alliances among higher education institutions in Zambia. Literature on alliances is explicit and highlights the benefits of alliances as well as the challenges. The study was qualitative in nature utilizing purposive sampling. It was a case study focusing on the existing strategic alliances among three universities situated in the capital of Zambia: University of Zambia, University of Africa and Cavendish University. Sixty participants, 20 from each participating (...) university were purposively selected to represent a rich demographic mix in terms of gender, level of education and experience. These were selected based on their knowledge and experience working in universities as well as their strategic positions in their universities. Data were qualitatively analysed using thematic analysis. Three major themes namely benefits of strategic alliances to universities, challenges faced by strategic alliances among universities and mechanisms to manage such challenges were identified and discussed. It was concluded that strategic alliances among universities benefited the Zambian higher education market better than competition. Challenges identified such as lack of commitment to the strategic alliances could easily lead to their failure and therefore appropriate strategies such as ensuring that contracts offered to staff clearly stipulated the boundaries of staff rights are needed to mitigate such failure. (shrink)

Game theory involves deliberating about what to do in light of what other people are likely to do. One of the central frameworks of game theory is the prisoner’s dilemma, in which participants who make rational choices end up in suboptimal outcomes. Using the prisoner’s dilemma to model competition between firms sets the stage for a new and promising approach to business ethics: the market failures approach.

One of the main contentions of the framework for Responsible Innovation (RI) is that social and ethical aspects have to be addressed by deliberative engagement with stakeholders and the wider public throughout the innovation process. The aim of this article is to reflect on the question to what extent is deliberative engagement suitable for conducting RI in business. We discuss several tensions that arise when this framework is applied in the business context. Further, we analyse the place of deliberative engagement (...) in several theories of business ethics. We conclude that there remains a tension between the ideal of RI and the way in which the competitive market operates. Hence, RI scholars should reflect more critically on changes that are required in the market in order to make RI possible, modify the ideal of deliberative engagement for RI in business, or attempt to strike a balance between these two responses. (shrink)

This paper investigates the fundamental idea at stake in current bioeconomies such as Europe's Bio-Based Economy (BBE). We argue that basing an economy upon ecology is an ambivalent effort, causing confusion and inconsistencies, and that the dominant framing of the damaged biosphere as a market-failure in bioeconomies such as the BBE is problematic. To counter this dominant narrative, we present alternative conceptualisations of bio-economies and indicate which concepts are overlooked. We highlight the specific contradictions and discrepancies in the relation (...) between economy and ecology, and then work towards outlining a genuine and consistent conceptualisation of the BBE. The philosophical perspective of Emmanuel Levinas is employed to develop a more profound understanding of the tensions at stake; Levinas' work is compared with that of Nicholas Georgescu-Roegen's work on bioeconomics, and found to be of complementary value. Our hypothesis is that, rather than the impossible, absolute amalgamation of economy and ecology striven for today, a principal heterogeneity between humankind and nature must be acknowledged if a bioeconomy that truly operates within the carrying capacity of planet Earth is to be achieved. (shrink)

Although Robert Nozick has argued that libertarianism is compatible with the justice of a minimal state—even if does not arise from mutual consent—few have been persuaded. I will outline a different way of establishing that a non-consensual libertarian state can be just. I will show that a state can—with a few important qualifications—justly enforce the rights of citizens, extract payments to cover the costs of such enforcement, redistribute resources to the poor, and invest in infrastructure to overcome market (...) class='Hi'>failures. Footnotesa For very helpful comments, I am indebted to Dani Attas, Ellen Frankel Paul, Robert Johnson, Brian Kierland, Mike Otsuka, Eric Roark, and the other contributors to this volume. (shrink)

Forcehimes poses a parity between libraries and downloading books online and concludes that the im/permissibility of one of them entails the im/permissibility of the other and vice versa. Karjiker rejects this parity arguing that the magnitudes of these two are vastly different and while libraries do not lead to a considerable market failure, downloading e-books does. In this article, I try to clarify some points, show a kind of parochialism in Karjiker’s arguments, propose a thought experiment to neutralize the (...) magnitude problem, and justify Forcehimes’ main idea. (shrink)

A principal rationale for public policy is to address market failures. Pareto efficiency is therefore a highly common and relatively non-controversial evaluative criterion for many policy analyses and is discussed at length in policy analysis texts. This makes sense, for Pareto improvements involve making at least one person better off without making anyone worse off. Who could object to that? But does efficiency deserve the prominence it enjoys in public policy? Is one policy option better than another, at (...) least in one respect, simply because it is more Pareto efficient? Or, is efficiency valuable for some other reason? In this chapter, I discuss Pareto efficiency as an evaluative criterion and argue that it is a stand-in for a more foundational criterion: wellbeing. I begin with an overview of Pareto efficiency, discuss the various ways in which it is operationalized to evaluate policy options, and argue that it is valuable insofar as more efficient states of affairs promise more wellbeing than less efficient states of affairs. I then raise questions regarding whether the conception of wellbeing presupposed by Pareto efficiency – preference satisfaction – is a defensible conception of wellbeing. I go on to introduce three alternative conceptions of wellbeing which have been proposed and defended by both philosophers and policy scholars, namely, hedonism, objective goods views, and the capability approach, and suggest ways in which each can be operationalized as an evaluative criterion. I close by discussing four ‘theory-free’ approaches to thinking about the impact of policies on the quality of people’s lives. Such approaches reject the idea that there is one single theory of wellbeing that should be used to evaluate policy options, and instead develop ways to evaluate the impact of policies on people’s lives that are not grounded in a specific theory. (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)

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. (shrink)

A fiscal administration shows the reality of government and public organization in their provision of public good or service for the citizen. It is an independent subject from the accounting, economic, political, and legal science, which is interdisciplinary and strives for any distinct goal of studies. A fiscal sustainability perhaps would be one ideal that this science would flounder to crystallize and hold out. The studies would be similar to the adjacent sciences, but could be defined ultimately for its unique (...) feature or characteristic. The accounting or accounting sciences would aim to set forth the standards of evaluating the operation and asset or debt as well as the formality to show the numerical status or assessment for the businesses, mainly private and secondarily public. The fiscal administration involves these aspects, but there are many other elements to inculcate the minds of fiscal researcher, such as public ideals or social justice beyond the math or numerical requirements. The economic science would guide the criterion of practice for the government or public organization when they contemplate on the fiscal issues or challenges. The efficiency of budget or basic concepts, i.e., scanty resources or appropriability problem, non-exclusion and non-exhaustion, eminent dichotomy between the private and public sectors or privatization, distinction between provision and production, and so on, would divulge a close dialogue and interactive understanding between the two sciences. Nevertheless, there are differences being present invariably and conceptually between them. For example, the market failure perhaps would be one stigmatic condition to increase the profile of fiscal science. A provision anticipated from the government had been defined far earlier from the classic thought, such as police and national defense. We may share the economic idea, such as Pareto criterion, but the fiscal administration would phase out a multifaceted interplay, principally because it concerns of rule of government and because of its general absoluteness. Many artificial and institutional assumption and terms would variegate the pure theory of Pareto optimal to struggle in the cause of immeasurable kinds of values or concepts. For example, democracy is based on the head count and generally from the value of equal voting in deciding a fiscal issue. The bloated payroll would perhaps presuppose an odd reality deviated from the Pareto ideals, and the logrolling or lobbying would upstage or provide a culprit to breach the economic ways of interaction or commandment. In some cases, they trade a vote to pass the public hurdle that misallocates the resources for less than efficient public programs. Nevertheless, it explains the place where we now stand, and the macro-economy or the kind of thoughts would be considered as most approximated with the quality of fiscal studies. The science of fiscal administration would not disappear unless our reality would be purified, as the economic thought espoused, for the idealistic liberal market or communism. In both cases, the government would no longer be necessary and the fiscal administration is never demanded. It also would be denied if the communist ideals would become a reality any ultimately, say, perish of government and idealistic friendship of working class without exploitation. This means the fiscal administration is a practical science, not merely a theoretical framework, which is to be investigated and approached for the kind of hybrid products. As the political science is basically a bland product on the concept of political power, it could be intermingled with the fiscal science partly in areas of thought, but be made distinct among another. (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)

In this article, I put forward an approach to business ethics that focuses on the notion of “implicit morality of the market”. I therefore try to identify the main components of this implicit morality of the market and expose the advantages of taking such a stance to think about the obligations of firms. In order to do so, I try to shed some light, drawing on recent works by Joseph Heath, on the potential normative role of the concept (...) of market failures as articulated in economic theory. I finish by examining three problems that this approach is facing.RÉSUMÉDans cet article, je mets en avant une approche de l’éthique du commerce centrée sur la notion de « moralité implicite du marché ». J’essaie d’identifier les grands traits de cette moralité impli- cite du marché en plus d’exposer les avantages d’adopter une telle approche pour penser les obli- gations des firmes. Pour ce faire, je tente, en m’inspirant de travaux récents de Joseph Heath, de mettre en lumière le rôle proprement normatif que peut jouer le concept de défaillances des mar- chés tel que développé dans la théorie économique. Je termine en examinant trois problèmes auxquels fait face l’approche proposée ici. (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 presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. (...) This finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

Between 2015 and 2017, a reform of teacher training policies was carried out in Colombia. The process of implementing this normativity is analyzed using the multiple case study methodology with five institutions in Bogotá and the consequences for these programs are examined: higher prices and reduction of students. It is evident that the implementation of the studied reform discouraged the training of teachers in philosophy. The changes implemented showed fractures in the legislation and a failure in the strategy of commodification (...) of education, since in an inequitable context like the Colombian one, solving the problems of education is not enough to regulate the education market. (shrink)

The nationwide economic reform in 1986 transformed Vietnam from a centrally planned economy to a socialist-oriented market economy. Entrepreneurs and entrepreneurial spirits within the populace are suggested to fuel the structural changes. Despite the importance of entrepreneurship in Vietnam’s economy, studies in Vietnam mainly pay attention to the practical aspects of entrepreneurial activities and neglect the cognitive and theoretical aspects of entrepreneurship. Thus, the current study employs the information-processing perspective of the Mindsponge Theory to explore how entrepreneurs’ knowledge accumulation (...) can affect their perceived likelihood of business success. Bayesian analysis indicates that business-related experience positively affects entrepreneurs’ business success likelihood. Greater willingness/readiness to transform thinking, acting, and beliefs can improve the business success of entrepreneurs who study others’ failures carefully. However, for entrepreneurs who perceive learning from others’ failures as unnecessary, higher willingness/readiness to transform diminishes their chance of success. Based on these findings, we recommend Vietnamese entrepreneurs accumulate knowledge through experience, learning, and an open mind for better decision-making and innovation creation capabilities. However, the learning process should be selective. (shrink)

The global ecological crisis is the greatest challenge humanity has ever had to confront, and humanity is failing. The triumph of the neo-liberal agenda, together with a debauched ‘scientism’, has reduced nature and people to nothing but raw materials, instruments and consumers to be efficiently managed in a global market dominated by corporate managers, media moguls and technocrats. The arts and the humanities have been devalued, genuine science has been crippled, and the quest for autonomy and democracy undermined. The (...) resultant trajectory towards global ecological destruction appears inexorable, and neither governments nor environmental movements have significantly altered this, or indeed, seem able to. The Philosophical Foundations of Ecological Civilization is a wide-ranging and scholarly analysis of this failure. This book reframes the dynamics of the debate beyond the discourses of economics, politics and techno-science. Reviving natural philosophy to align science with the humanities, it offers the categories required to reform our modes of existence and our institutions so that we augment, rather than undermine, the life of the ecosystems of which we are part. From this philosophical foundation, the author puts forth a manifesto for transforming our culture into one which could provide an effective global environmental movement and provide the foundations for a global ecological civilization. (shrink)

How can democratic governments be relied upon to achieve adequate political knowledge when they turn over their authority to those of no epistemic distinction whatsoever? This deep and longstanding concern is one that any proponent of epistemic conceptions of democracy must take seriously. While Condorcetian responses have recently attracted substantial interest, they are largely undermined by a fundamental neglect of agenda-setting. I argue that the apparent intractability of the problem of epistemic adequacy in democracy stems in large part from a (...) failure to appreciate the social character of political knowledge. A social point of view brings into focus a number of vital factors that bear on our understanding of democratic epistemology and our assessment of its prospects: the essential role of inclusive deliberation, the public's agenda-setting function, institutional provisions for policy feedback, the independence of expert communities, and the knowledge-pooling powers of markets. (shrink)

Full privatisation of schools would involve states abstaining from providing, funding or regulating schools. I argue that full privatisation would, in most circumstances, worsen social injustice in schooling. I respond to James Tooley's critique of my own arguments for funding and regulation and markets. I argue that even his principle of educational adequacy requires a certain level of state involvement and demonstrate that his arguments against a principle of educational equality fail. I show, furthermore, that he relies on an over-optimistic (...) attitude regarding the operation of markets, which involves a failure to appreciate the diversity of quality in states, and that he misreads the evidence concerning private schooling in some developing countries. (shrink)

With the early success of the deep ecology movement in attracting adherents and with the increasing threat of a global ecological catastrophe, one would have expected this movement to have triumphed. We should be in the process of radically transforming society to create a harmonious relationship between humans and the rest of nature. Instead, deep ecology has been marginalized. What has triumphed instead is an alliance of managerialism, transnational corporations and neo-liberalism committed to replacing communities with markets and transforming every (...) facet of nature and society into means for increasing the profitability of corporations and expanding GDP. This outcome is here explained by the failure of deep ecologists to understand the ideological, political and economic forces driving ecological destruction, and thereby what is required to overcome these. To regain the initiative, it is argued, it will be necessary to recover the whole project of the Radical Enlightenment upholding the Renaissance quest for liberty that was subverted by the scientific materialism and possessive individualism of the Moderate Enlightenment. Not only will it be necessary to transform science to develop a comprehensive alternative conception of nature and humanity and its destiny, it will be necessary to revive and develop the institutions of the Radical Enlightenment to subordinate markets to democratically organized communities at multiple levels, as communities of communities committed to augmenting the life of these communities, including the life of ecological communities. Doing so will involve reformulating the grand narrative of emancipation as a dialogic, polyphonic grand narrative to orient individuals, organizations and nations to create a global ecological civilization. -/- . (shrink)

The current economic/political system, neoliberalism, has touched every aspect of life globally. The doctrine of neoliberalism consists of three central propositions, that the market is real and part of the natural universal law; that unlimited economic growth is both possible and even desirable; and that human nature is coincident with market values and based solely on self-interest. All three of these propositions are seriously flawed and have caused immense human suffering and staggering environmental destruction. This paper is a (...) reminder of the failures of neoliberal policy and an appeal for change to a new institutional arrangement in which development trumps economic growth. This position is in contrast to Francis Fukuyama’s end-of-history thesis. He alleges there are no economic/political ideologies to compete with neoliberalism, the “TINA principle: There Is No Alternative”: the West has won. It is time to reintroduce Henry David Thoreau’s, and to a lesser extent, Adam Smith’s moral economies. Both have encourgaging insights, often overlooked by current academic economists, which could figure prominently in the conception of a new economy. (shrink)

Holography, the three-dimensional imaging technology, was portrayed widely as a paradigm of progress during its decade of explosive expansion 1964–73, and during its subsequent consolidation for commercial and artistic uses up to the mid 1980s. An unusually seductive and prolific subject, holography successively spawned scientific insights, putative applications and new constituencies of practitioners and consumers. Waves of forecasts, associated with different sponsors and user communities, cast holography as a field on the verge of success—but with the dimensions of success repeatedly (...) refashioned. This retargeting of the subject represented a degree of cynical marketeering, but was underpinned by implicit confidence in philosophical positivism and faith in technological progressivism. Each of its communities defined success in terms of expansion, and anticipated continual progressive increase. This paper discusses the contrasting definitions of progress in holography, and how they were fashioned in changing contexts. Focusing equally on reputed ‘failures’ of some aspects of the subject, it explores the varied attributes by which success and failure were linked with progress by different technical communities. This important case illuminates the peculiar post-World War II environment that melded the military, commercial and popular engagement with scientific and technological subjects, and the competing criteria by which they assessed the products of science. (shrink)

In the last 10 years, after becoming the official member of WTO in 2007, Vietnam has made commitments to the comply with the US-Vietnam Bilateral Trade Agreement and other international economic agreements. Vietnam has also become a member of the AEC and entered into important free trade agreements, notably the Trans-Pacific Partnership. The financial integration of Vietnam in the global economy has been increasing rapidly. However, Vietnam also witnesses the unexpected economic fluctuations domestically and internationally. The global financial crisis, especially (...) the US financial crisis, exerts a major impact on Vietnam’s economy and its banking system. Accordingly, the real estate market, stock market and banking system in Vietnam have fluctuated remarkably. This article discusses the causes of the US financial crisis and analyses the US government’s solutions. The causes of the US financial crisis are distributed to lax lending standards, failures in regulations of derivates financial instruments, and lack of state control of banking systems. In this respect, recommendations are made for Vietnam’s case. (shrink)

In the last 10 years, after becoming the official member of WTO in 2007, Vietnam has made commitments to the comply with the US-Vietnam Bilateral Trade Agreement and other international economic agreements. Vietnam has also become a member of the AEC and entered into important free trade agreements, notably the Trans Pacific Partnership. The financial integration of Vietnam in the global economy has been increasing rapidly. However, Vietnam also witnesses the unexpected economic fluctuations domestically and internationally. The global financial crisis, (...) especially the US financial crisis, exerts a major impact on Vietnam’s economy and its banking system. Accordingly, the real estate market, stock market and banking system in Vietnam have fluctuated remarkably. This article discusses the causes of the US financial crisis and analyses the US government’s solutions. The causes of the US financial crisis are distributed to lax lending standards, failures in regulations of derivates financial instruments, and lack of state control of banking systems. In this respect, recommendations are made for Vietnam’s case. (shrink)

Globalization today is at a dangerous crossroads. Although many alleged it has provided enormous benefits, but the systemic risks and growing inequality it causes necessitate urgent action. The myth of a borderless world is crashing down. Traditional pillars of open markets; the United Kingdom and United States are wobbling. This is evident in the Brexit vote which stunned European Union and the world at large, couple with the recent policies of the American government towards its fellow western allies and immigrants. (...) Many people are beginning to feel so troubled about our economic future. The failure to arrest these global developments is likely to lead to growing nationalist policies, protectionism and xenophobia, which the world is already witnessing. Globalization has created growth, no doubt. But what kind of growth? And for who? This crisis posed by globalization has forced many to question the motive behind this phenomenon. Could this be renewed imperialism? This paper adopts rational and analytic methods in exposing this argument. (shrink)

Detailed review of the 2018 film. This article is concerned to define contemporary art such that the machinations of the current art market - as portrayed in the film - make sense. The central idea is that the best of contemporary art is narrative rather than merely aesthetic; and a failure to understand this leads to the confusion that currently characterizes judgements about modern artworks.

In modern Russian society, it is possible to trace the division into citizens who support the reforms of the education system, carried out over the past 20 years, and their ideological opponents. The purpose of the article is to identify the grounds of this social conflict and the failure of the reforms at the level of public consciousness. The author argues that the discrepancy between conceptual education metaphors guiding the vector of education policy causes a different understanding of the essence, (...) goals and objectives of education, which leads to social conflict and dysfunction of the system. The article seeks to identify the leading conceptual metaphors of education at the regulatory level and in the citizens’ consciousness; to elucidate of the values constituting the core of each metaphor; to compare the found metaphors with the leading philosophical approaches to education; to detect other conceptual metaphors; and, finally, to suggest recommendations for resolving the conflict. The two found leading metaphors of education in modern Russia contradict at the axiological level, which leads to social conflict. The author sees a solution in adopting philosophic-anthropological approach and, according to the results of the survey, the corresponding conceptual metaphors of education as construction and educational journey. (shrink)

Ethical debates about assisted dying typically assume that only medical professionals should be able to provide patients with assisted dying. This assumption partially rests on the unstated principle that assisted dying providers may not be motivated by pecuniary considerations. Here I outline and defend a mixed provider model of assisted dying provision that contests this principle. Under this model, medically competent non-physician professionals could receive fees for providing assisted dying under the same terms and conditions as physicians can in those (...) juris- dictions where medically assisted dying is lawful. The mixed provider model blunts objections to assisted dying rooted in supposed clashes with medical values. In addition to generating a market likely to expand access to assisted dying, the mixed provider model would not create markets that are unjust because they are “noxious” in Satz’ sense or because they raise “semiotic” concerns about the value of human life. (shrink)

Philosophy begins and ends in disagreement. Philosophers disagree among themselves in innumerable ways, and this pervasive and permanent dissent is a sign of their inability to solve philosophical problems and establish substantive truths. This raises the question: What should I do with my philosophical beliefs in light of philosophy's epistemic failure? In this open-access book, János Tozsér develops four possible answers into comprehensive metaphilosophical visions and argues that we cannot find peace either by committing ourselves to one of these visions (...) or by abandoning our philosophical beliefs. Tozsér calls this disheartening insight "the experience of breakdown", making the case that philosophy's truth-seeking and justificatory tools are unsuitable for establishing truths. Shedding light on the epistemic status of our philosophical beliefs, Tozsér adopts a broad approach to assess the metaphilosophical visions used by philosophers to interpret their own activity and determine their epistemic self-esteem. Open access was funded by the Research Centre for the Humanities, Hungary. (shrink)

Many proponents of the Harm Principle seem to implicitly assume that the principle is compatible with permitting the free exchange of goods and services, even if such exchanges generate so-called market harms. I argue that, as a result, proponents of the Harm Principle face a dilemma: either the Harm Principle’s domain cannot include a large number of non-market harm cases or market harms must be treated on par with non-market harms. I then go on to discuss (...) three alternative arguments defending the status of market harms as exceptions to the Harm Principle and discuss why these arguments also fail. (shrink)

In a market economy, human work is offered and sought in the labor market. It is valued because of the level of demand for it and the rarity of the required qualifications. At the same time, because of the different contexts and conditions, there are many labor markets that are defined as the professional labor markets, local labor markets, dual labor markets, and black and gray labor markets.

Efficient markets are alienating if they inhibit us from recognizably caring about one another in our productive activities. I argue that efficient market behaviour is both exclusionary and fetishistic. As exclusionary, the efficient marketeer cannot manifest care alongside their market behaviour. As fetishistic, the efficient marketeer cannot manifest care in their market behaviour. The conjunction entails that efficient market behavior inhibits care. It doesn’t follow that efficient market behavior is vicious: individuals might justifiably commit to (...) efficiency because doing so serves the common good. But efficient market systems nevertheless have significant opportunity costs. The discussion yields a range of desiderata for non-alienated economic organization. (shrink)

In response to the claim that certain epistemically defective inferences such as Moore’s argument lead us to the conclusion that we ought to abandon closure, Crispin Wright suggests that we can avoid doing so by distinguishing it from a stronger principle, namely transmission. Where closure says that knowledge of a proposition is a necessary condition on knowledge of anything one knows to entail it, transmission makes a stronger claim, saying that by reasoning deductively from known premises one can thereby acquire (...) knowledge of or justification for the conclusion. Wright’s thought is that in cases such as Moore what is really going on is a failure of transmission, not a failure of closure. The problem with this claim is that it relies on an outdated formulation of closure which few nowadays would find plausible. Once we stipulate that it is the intuitive closure principle that deserves our attention, it becomes far less obvious that the project of diagnosing what is wrong with arguments such as Moore in terms of transmission failure but not closure failure can be vindicated. In order to demonstrate this claim, I consider intuitive closure of propositional justification vs. transmission of propositional justification and concede that perhaps these can come apart in the way that Wright suggests. I then argue that despite this concession, we also need an answer to the question of whether intuitive closure for doxastic justification and transmission for doxastic justification can come apart. We need an answer to this question because our ultimate interest in these issues stems from our interest in whether knowledge obeys closure, not merely whether propositional justification does. I argue that, even on the assumption that there is transmission failure of propositional justification, there is no transmission failure of doxastic justification. And if this is true, then there is no transmission failure of knowledge either. The transmission failure diagnosis of Moore’s argument and its ilk is thus in trouble. (shrink)