Drawing on behavioral economics, nudges (policy interventions based on choice architecture) have the capacity to strategically shape policymaking, subtly guiding individual behavior by adjusting their decision environment. Applied to enhance vaccinations, boost retirement savings, or promote healthy habits, these interventions align with consensus-defined well-being. As governments adopt nudges, scholars have explored their role in fostering virtues. This paper argues that nudges have the potential to efficiently contribute to virtuous development by instilling and sustaining habits, respecting individual choice, and (...) ensuring deliberation. It introduces the concept of virtue nudges, emphasizing the alignment of habits with virtues for targeted behavioral change and the formation of morally virtuous habits. (shrink)

This chapter discusses the role of methodological individualism in behavioral economics. Since behavioral economics developed in reaction to traditional microeconomics, the chapter sketches first the latter’s understanding of methodological individualism. It argues that traditional microeconomics is based on three principles: the self-interest principle, the rationality principle, and the social change principle. The chapter then discusses experimental findings that led behavioral economists to relax all three principles. It argues that, in particular, the relaxation of the social (...) change principle pushes the boundaries of methodological individualism as understood in traditional microeconomics since it highlights ways in which social institutions, norms, and rules affect individual processes of preference formation. In doing so, behavioral economics invites intricate methodological discussions of the bidirectional relationship between social institutions and individual actions. (shrink)

Volume 26, Issue 4, December 2019, Page 380-384.

I argue that the discussion around the True Preferences Knowledge Problem in behavioral welfare economics has suffered from a missing distinction between two different knowledge problems: one about welfare, and the other about public policy. Here, I separate those knowledge problems and show that, given their different success conditions, it is no surprise that we haven’t found a satisfactory answer to “the” true preferences knowledge problem. There is an embedded tendency to try to answer the policy knowledge problem (...) by engaging the welfare knowledge problem. I show that the impulse is misguided, and that we do not need to appeal to a complete theory of how preferences are related to welfare to answer questions about policy. However, this does not mean that we need to stop talking about preferences. We can make progress on the policy knowledge problem without appealing to a theory of welfare by focusing on the information that people are giving us about the mistakes they are making. I introduce repudiated preferences as a device that allows us to break out of this cycle and start to make progress in our discussions of nudging and Behavioral Intervention Policies without first solving the welfare knowledge problem. Finally, I acknowledge the challenges that still face this approach, and trace some avenues for how further work could build on these insights. (shrink)

The objective of this research is to empirically test a research model on the effect of consumer economic nationalism on consumers’ attitudinal and behavioral responses to the marketing of locally produced foods. Data was collected from a sample of Ghanaians through an online survey using a structured questionnaire. Using structural equation modelling to analyse the data, the study revealed that cognitive and affective involvement influences product familiarity. Also, product familiarity and economic nationalism influence consumers ‘overall attitude towards locally produced (...) foods. Finally, the overall attitude towards the product and economic nationalism both influence consumer buying intention of locally produced foods. This study was limited to the Ghanaian geographical context, thus, for a broader assessment of the robustness of the research model, future studies should undertake a cross-national comparison. The findings provide practitioners with the strategies for influencing consumer attitudes and intentions towards locally produced foods. For policymakers, the findings provide input on strategies for altering consumers’ attitudes and intentions to patronize locally produced foods. Considering the paucity of research in understanding the role of economic nationalism in influencing consumer attitude and intention towards locally produced foods, this study makes a compelling contribution to the literature by incorporating the economic nationalism theory into the theory of planned behavior. (shrink)

Given the endowment effect, the role of attention in decision-making, and the framing effect, most behavioral economists agree that it would be a mistake to accept the satisfaction of revealed preferences as the normative criterion of choice. Some have suggested that what makes agents better off is not the satisfaction of revealed preferences, but ‘true’ preferences, which may not always be observed through choice. While such preferences may appear to be an improvement over revealed preferences, some philosophers of (...) class='Hi'>economics have argued that they face insurmountable epistemological, normative, and methodological challenges. This article introduces a new kind of true preference – values-based preferences – that blunts these challenges. Agents express values-based preferences when they choose in a manner that is compatible with a consumption plan grounded in a value commitment that is normative, affective, and stable for the agent who has one. Agents who choose according to their plans are resolute choosers. My claim is that while values-based preferences do not apply to every choice situation, this kind of preference provides a rigorous way for thinking about classic choice situations that have long interested behavioral economists and philosophers of economics, such as ‘Joe-in-the-cafeteria.’. (shrink)

Since the concept of “nudge” was introduced in 2008 by Thaler and Sunstein, proposing that small interventions based on changes in choice architectures can alter people’s behavior and make it easier for them to achieve their desired goals, the application in public policy of behavioral economics has gained significant attention. This has led to the emergence of different types of policies based on behavioral insights, which have been used in a variety of areas, including health or finance, (...) with the goal of promoting well-being and addressing social and economic issues. After providing a basic theoretical background as a frame of reference to understand gender violence, this study explores the use of tools from the field of behavioral economics as it is applied in public policy. Regulatory (paternalistic) and non-regulatory (libertarian) interventions based on behavioral insights will be considered: nudges, boosts, shoves, budges, or sludge audits, are examined as potential interventions to use in matters related to this type of violence. After evaluating these behavioral policy instruments and their potential effectiveness, the limitations of the behavioral perspective are recognized, and the need for a multifaceted approach to combating gender violence is acknowledged. The article concludes by arguing that public policies addressing gender violence should not only utilize behavioral tools but should also incorporate strategies related to education, legislation, and social norms. (shrink)

The evidence of laboratory experiments of behavioral economists shows that individuals behave reciprocally. These data put into question the pure self-interest thesis of human motivation of the homo oeconomicus model and call for alternative models. Focusing on the explanation of reciprocal behavior in Trust Games, this article proposes two directions that economists and other social scientists might want to consider in order to establish a more solid foundation for economic theory. First, it presents models that economic theorists developed to (...) explain the laboratory evidence of reciprocal behavior. It highlights that all of these models subscribe to the Humean view that desires are at the source of any human motivation and suggests an alternative Kantian model where reasons have the capacity to motivate human action. Second, it emphasizes that a supplementary examination of the social background conditions would illuminate the analysis of the findings because of the connection between the 'local' and society-wide demands of reciprocity. (shrink)

Economies are complicated systems encompassing micro behaviors, interaction patterns, and global regularities. Whether partial or general in scope, studies of economic systems must consider how to handle difficult real-world aspects such as asymmetric information, imperfect competition, strategic interaction, collective learning, and the possibility of multiple equilibria. Recent advances in analytical and computational tools are permitting new approaches to the quantitative study of these aspects. One such approach is Agent-based Computational Economics (ACE), the computational study of economic processes modeled as (...) dynamic systems of interacting agents. This chapter explores the potential advantages and disadvantages of ACE for the study of economic systems. General points are concretely illustrated using an ACE model of a two-sector decentralized market economy. Six issues are highlighted: Constructive understanding of production, pricing, and trade processes; the essential primacy of survival; strategic rivalry and market power; behavioral uncertainty and learning; the role of conventions and organizations; and the complex interactions among structural attributes, institutional arrangements, and behavioral dispositions. (shrink)

Abstract: Don Ross’ Economic Theory and Cognitive Science (2005) provides an elaborate philosophical defense of neoclassical economics. He argues that the central features of neoclassical theory are associated with what he calls the Robbins-Samuelson argument pattern and that it can be reconciled with recent developments in experimental and behavioral economics, as well as contemporary cognitive science. This paper argues that Ross’ Robbins-Samuelson argument pattern is not in the work of either Robbins or Samuelson and in many ways (...) is in conflict with their own versions, and defenses, of neoclassical theory. (shrink)

Decision-making regarding healthcare expenditure hinges heavily on an individual's health status and the certainty about the future. This study uses data on propensity of general health exam (GHE) spending to show that despite the debate on the necessity of GHE, its objective is clear—to obtain more information and certainty about one’s health so as to minimise future risks. Most studies on this topic, however, focus only on factors associated with GHE uptake and overlook the shifts in behaviours and attitudes regarding (...) different levels of cost. To fill the gap, this study analyses a dataset of 2068 subjects collected from Hanoi (Vietnam) and its vicinities using the baseline-category logit method. We evaluate the sensitivity of Vietnamese healthcare consumers against two groups of factors (demographic and socioeconomic-cognitive) regarding payment for periodic GHE, which is not covered by insurance. Our study shows that uninsured, married and employed individuals are less sensitive to cost than their counterparts because they value the information in reducing future health uncertainty. The empirical results challenge the objections to periodic health screening by highlighting its utility. The relevance of behavioural economics is further highlighted through a look at the bounded rationality of healthcare consumers and private insurance companies in using and providing the service, respectively. (shrink)

Psychopathy, which is characterized by a constellation of antisocial behavioral traits, may be subdivided on the basis of etiology: “primary” (low-anxious) psychopathy is viewed as a direct consequence of some core intrinsic deficit, whereas “secondary” (high-anxious) psychopathy is viewed as an indirect consequence of environmental factors or other psychopathology. Theories on the neurobiology of psychopathy have targeted dysfunction within ventromedial prefrontal cortex (vmPFC) as a putative mechanism, yet the relationship between vmPFC function and psychopathy subtype has not been fully (...) explored. In this study, we administered two laboratory decision-making tasks (the Ultimatum Game and the Dictator Game) to a group of prisoners (n=47) to determine whether the different subtypes of psychopathy (primary vs. secondary) are associated with characteristic patterns of economic decision-making, and furthermore, whether either subtype exhibits similar performance to patients with vmPFC lesions. Comparing primary psychopaths (n=6) to secondary psychopaths (n=6) and non-psychopaths (n=22), we found that primary psychopathy was associated with significantly lower acceptance rates of unfair Ultimatum offers and lower offer amounts in the Dictator Game. Moreover, primary psychopaths were quantitatively similar to vmPFC lesion patients in their response patterns. These results support the purported connection between psychopathy and vmPFC dysfunction, bolster the distinction between primary and secondary psychopathy, and demonstrate the utility of laboratory economic decision-making tests in differentiating clinical subgroups. (shrink)

This paper argues that private property and rights assignment, especially as applied to communication infrastructure and information, should be informed by advances in both technology and our understanding of psychology. Current law in this area in the United States and many other jurisdictions is founded on assumptions about human behavior that have been shown not to hold empirically. A joint recognition of this fact, together with an understanding of what new technologies make possible, leads one to question basic assumptions about (...) how law is made and what laws we should have in a given area, if any. I begin by analyzing different aspects of U.S. law, from a high-level critique of law making to a critique of rights assignment for what I call 'simple nonrival goods.' I describe my understanding, as a non-lawyer with a background in psychology and computing, of the current conventions in U.S. law, consider the foundational assumptions that justify current conventions, describe advances in psychology and technology that call these conventions into question, and briefly note how the law might normatively change in this light. I then apply this general analysis to the question of domain name assignment by the Internet Corporation for Assigned Names and Numbers (ICANN). (shrink)

Current intellectual calls for more socially minded governance often resort to the authority of the experimental and behavioral economists who have provided uncontroversial evidence for the generalized existence of a Homo socialis. For a qualitative social researcher, the narrative of a “discovery” makes little sense. This article provides a more meaningful account of the experimental rationale of prosocial preferences research, interrogating, from a “decolonial” theoretical perspective, the epistemic and normative implications of a method that persuasively claims to have challenged (...) the intellectual imperialism of Homo economicus. Just as the colonial discourse that speaks of the “discovery” of America has shaped the global Eurocentric mentality that splits the world into hierarchical binaries, the academic discourse that speaks of the “discovery” of Homo socialis could reinforce a behavioral range that reduces the interpretation of non-prosocial choices to a binary spectrum still metrologically organized around Homo economicus. The danger is that Southern subjects do not always have the privilege of feeling prosocial and could be penalized for their disadvantage within a socially minded mode of governance. To address this danger, the article argues, experimental social scientists need to become qualitatively attuned to the methodological question of “range validity” beyond the traditional one of “external validity.”. (shrink)

Psychological well-being is a major global concern receiving more scholarly attention following the 2008 Great Recession, and it becomes even more relevant in the context of COVID-19 outbreak. In this study, we investigated the impact of economic uncertainty resulting from natural disasters, epidemics, and financial crisis on individuals' mental health. As unemployment rate exponentially increases, individuals are faced with health and economic concerns. Not all society members are affected to the same extent, and marginalized groups, such as those suffering from (...) chronic mental illnesses or low-income families cannot afford the downsizing, mass lay-offs and lack of access to public health services. Psychiatric profession is familiarized with the phenomenon of intolerance of uncertainty (IU), and we examine how this concept is associated with job uncertainty and social identity disturbance. Several studies have formally investigated the effects of IU, but to our knowledge, this is the first research integrating the psychological well-being, job uncertainty and identity disturbance caused by economic breakdown. Literature points to many reported cases of PTSD, anxiety, depression and suicidal tendencies following major social disasters. Yet, we have undertaken to analyze the subjective experiences underlying the self-harming behaviors in an attempt to fill the methodological gap by drawing insights from prominent psychological, sociological and economic theories. We find economic uncertainty to have a positive relation to job uncertainty and identity disturbance, and a negative relationship with psychological well-being. Psychological well-being depends on coherency between both abstract subjective and concrete objective identity, and when these perceptions are inconsistent, cognitive dissonance arises resulting in identity disturbance. We argue that stability is not associated with monetary advantage only, but also with a wide range of other benefits that are crucial for individuals' growth, satisfaction and sense of identity. Therefore, we propose the implementation of social support and public welfare policies to mitigate health risks during the turbulent socio-economic changes. (shrink)

Focusing on the work of Friedrich von Hayek and Vernon Smith, we discuss some conceptual links between Austrian economics and recent work in behavioral game theory and experimental economics. After a brief survey of the main methodological aspects of Austrian and experimental economics, we suggest that common views on subjectivism, individualism, and the role of qualitative explanations and predictions in social science may favour a fruitful interaction between these two research programs.

Household electricity consumption rates are increasing globally. However, saving electricity can decrease energy use, avoid wastage, and save financial resources for households. Therefore, this study was conducted to determine how attitude influences electricity-saving behaviors among household users in Nsukka District, Enugu State, Nigeria. The study adopted a descriptive survey design. A research question with corresponding null hypotheses was formulated and tested at a 0.05 level of significance. Stratified random sampling was used to select 400 household users, consisting of 206 females (...) and 194 males. A structured questionnaire was used to collect information from the respondents. The questionnaire was validated by three experts and tested for reliability using the Cronbach alpha method. It contained respondents' personal data (biodata and demographics) and 28 items on attitudinal factors. The data obtained were analyzed to determine mean responses, and t-tests were used to test the null hypotheses at a 0.05 level of significance. The study found that gender does not influence the attitude of household users towards electricity-saving behaviors. It is recommended that government and non-government bodies organize training programs for household users of electricity to improve their attitude and promote more electricity-saving behaviors. (shrink)

In a number of recent publications, Cass Sunstein and Richard Thaler have argued for a novel approach to the design of public policy. Their proposal has received a great deal of attention, both within academic circles and the public at large. Drawing upon evidence from behavioral economics and empirical psychology, the authors attempt to demonstrate that the conventional antagonism between libertarians and paternalists within political theory dissolves in conditions that obtain widely in public decision-making. Where free choice and (...) the promotion of individual welfare can coexist, the authors believe that designers of public policy ought to be libertarian paternalists. In this paper I criticize their proposal on grounds that the authors are unable to sufficiently motivate the paternalistic element of their approach. I argue that the empirical evidence cited by the authors is capable of supporting a number of competing approaches, including what I call libertarian utilitarianism and libertarian justice. Since the evidence that the authors draw upon does not provide us any grounds for selecting between these rival approaches, I conclude that Sunstein and Thaler are unable to provide us with a convincing guide for the design of public policy. In order to show that this is the case, I consider three arguments in favor of libertarian paternalism, and find each lacking. I end with some comments about what we can properly conclude on the basis of Sunstein and Thaler’s arguments. (shrink)

Expeditious increase in population and industrialization has led to alarming rates of air pollution in all countries. However, developing economies have had to face a more adverse and severe impact. This had led to many changes in the day to day living of citizens. In this paper we have focused on the psychological process and predictors of migration intention of the people living in Hanoi, Vietnam. Two stratified random datasets of 475 people were used, and Bayesian analysis was performed on (...) this dataset. We found out that the intent to move was negatively associated to the individual’s satisfaction with air quality. We also found that people who have family members that have fallen victim to a disease caused by air pollution are more likely to migrate. This paper discusses an important topic: immigration of the younger demographic, i.e. the Hanoi workforce, which may cause restrictions and hurdles in the city's urbanisation and development. The findings suggest that, if measures against air pollution are not taken, economic forces may be disrupted, posing a threat to urban growth. As a result, collaborative activities and steps need to be taken by the government to curb this unfortunate consequence. (shrink)

Corruption devours profts, people, and the planet. Ethical leaders promote ethical behaviors. We develop a frst-stage moderated mediation theoretical model, explore the intricate relationships between ethical leadership (member rated, Time 1) and employee ethical behaviors (leader rated, Time 3), and treat ethical climate and organizational justice (member rated,Time 2) as dual mediators and leaders’ moral attentiveness (leader rated, Time 3) as a moderator. We investigate leadership from two perspectives—leaders’ self-evaluation of moral attentiveness and members’ perceptions of ethical leadership. We theorize: (...) These dual mediation mechanisms are more robust for high moral leaders than low moral leaders. Our three-wave data collected from multiple sources, 236 members and 98 immediate supervisors in the Republic of Iraq, support our theory. Specifcally, ethical leadership robustly impacts organizational justice’s intensity and magnitude, leading to high employee ethical behaviors when leaders’ moral attentiveness is high than low. However, ethical leadership only infuences the ethical climate’s intensity but has no impact on the magnitude when leaders’ moral attentiveness is high than low. Therefore, organizational justice is a more robust mediator than the ethical climate in the omnibus context of leader moral attentiveness. Our fndings support Western theory and constructs, demonstrating a new theory for Muslims in Arabic’s emerging markets. Individual decision-makers (subordinates) apply their values (ethical leadership) as a lens to frame their concerns in the immediate (organizational justice and ethical climate) and omnibus (leader moral attentiveness) contexts to maximize their expected utility and ultimate serenity-happiness. Ethical leadership trickles down to employee ethical behaviors, providing practical implications for improving the ethical environment, corporate social responsibility, leader-member exchange (LMX), business ethics, and economic potentials in the global competitive markets. (shrink)

On 11 March 2020, the World Health Organization declared a pandemic of the COVID-19 coronavirus disease that was first recognized in China in late 2019. Among the primary effects caused by the pandemic, there was the dissemination of health preventive measures such as physical distancing, travel restrictions, self-isolation, quarantines, and facility closures. This includes the global disruption of socio-economic systems including the postponement or cancellation of various public events (e.g., sporting, cultural, or religious), supply shortages and fears of the same, (...) schools and universities closure, evacuation of foreign citizens, a rise of unemployment, changes in the international aid schemes, misinformation, and incidents of discrimination toward people affected by or suspected of having the COVID-19 disease. The pandemic has brought to the fore unpreparedness in critical areas that require attention, amid prospects and challenges. Moreover, considerable reorganization efforts are required with implications for assets, resources, norms, and value systems. COVID-19 is challenging the concept of globalization and stimulating responses at the levels of local and regional socio-economic systems that lead to the mobilization of assets that have been unrecognized earlier on, such as various forms of economic capital, social capital, cultural capital, human capital, and creative capital. For example, through digital channels, local groups are forming to create schemes of support for physical and mental wellbeing. These emerging exchanges lead to various social and technological innovations by building on skills and assets that are less important in the free-market economy, such as empathy, skills for crafts, making and fixing; locally grown microgreens; and micromanufacturing. Isolation and local living are also making it much harder to ignore the civic responsibilities towards communities, meant as individuals, vulnerable groups, and local businesses. Whilst the pandemic is limiting physical participation, this challenging time is uncovering alternative ways of mutual support, which may create long-term benefits for socio-economic systems, including environmental and biodiversity protection, reduction of the air pollution, and climate action. The pandemic’s threat to public health will hopefully be overcome with implications for disruption for an extended period that we are unable to forecast at this stage. It is key to focus on studies recognizing the activities and interventions leading to the recovery of socio-economic systems after the pandemic. Reflecting and planning on how societies and economies will go back to “business as usual” requires new forms of communication and cooperation, imaginative design thinking, new styles of management, as well as new tools and forms of participation in various public policies. Many questions related to the care of the vulnerable, economic restart, and the risk of future pandemics, to mention but a few, are already occupying the academic, scientific, experts, and activist communities, who have started to imagine the “new normal.”. (shrink)

Techniques from behavioral economics—nudges—may help physicians increase pediatric vaccine compliance, but critics have objected that nudges can undermine autonomy. Since autonomy is a centrally important value in healthcare decision-making contexts, it counts against pediatric vaccination nudges if they undermine parental autonomy. Advocates for healthcare nudges have resisted the charge that nudges undermine autonomy, and the recent bioethics literature illustrates the current intractability of this debate. This article rejects a principle to which parties on both sides of this debate (...) sometimes seem committed: that nudges are morally permissible only if they are consistent with autonomy. Instead, I argue that, at least in the case of pediatric vaccination, some autonomy-undermining nudges may be morally justified. This is because parental autonomy in pediatric decision-making is not as morally valuable as the autonomy of adult patients, and because the interests of both the vaccinated child and other members of the community can sometimes be weighty enough to justify autonomy-infringing pediatric vaccination nudges. This article concludes with a set of worries about the effect of pediatric vaccination nudges on parent-physician relationships, and it calls on the American Academy of Pediatrics to draw on scientific and bioethics research to develop guidelines for the use of nudges in pediatric practice and, in particular, for the use of pediatric vaccination nudges. (shrink)

Capacity-building projects are crucial for developing the skills of indigenous communities, fostering sustainable business growth, and empowering individuals. However, women in the Higaonon community had limited access to modern technologies and business management training. To address this gap, a project was implemented by the Non-Timber Forest Products- Exchange Programme (NTFP-EP), in collaboration with the Food Technology Department of Bukidnon State University. After several years of implementation, the project’s impact on the community remained uncertain. To evaluate this impact, a convergent mixed-methods (...) research study was conducted to assess the project’s impact on the socioeconomic well-being of Higaonon women and the effectiveness of the trainings in enhancing their financial management and technology operation and maintenance skills. The study was grounded in the theory of change framework. Participants were members of a Higaonon women-led social enterprise. Descriptive analysis revealed that the trainings were highly effective in addressing the women’s capacity- building needs. Thematic analysis yielded four relevant themes: empowerment and improved livelihoods, capacity building and skill development, challenges and opportunities, and community development and sustainability. A joint display analysis further confirmed that the trainings’ effectiveness aligned with the capacity building and skill development theme. These enhanced skills empowered women, improved their livelihoods, and opened new opportunities to overcome challenges. The improved financial literacy, technical skills, and business management capabilities have the potential to contribute to the long-term sustainability and prosperity of the community. Future research could explore the scalability of this social impact to inform policy and practice in community-based enterprise development. (shrink)

_Framing effects_ concern the having of different attitudes towards logically or necessarily equivalent contents. Framing is of crucial importance for cognitive science, behavioral economics, decision theory, and the social sciences at large. We model a typical kind of framing, grounded in (i) the structural distinction between beliefs activated in working memory and beliefs left inactive in long term memory, and (ii) the topic- or subject matter-sensitivity of belief: a feature of propositional attitudes which is attracting growing research attention. (...) We introduce a class of models featuring (i) and (ii) to represent, and reason about, agents whose belief states can be subject to framing effects. We axiomatize a logic which we prove to be sound and complete with respect to the class. (shrink)

ABSTRACT“Evidence-based” methods, which most prominently include randomized controlled trials, have gained increasing purchase as the “gold standard” for assessing the effect of public policies. But the enthusiasm for evidence-based research overlooks questions about the reliability and applicability of experimental findings to diverse real-world settings. Perhaps surprisingly, a qualitative study of British educators suggests that they are aware of these limitations and therefore take evidence-based findings with a much larger grain of salt than do policy makers. Their experience suggests that the (...) real world is more heterogeneous than the world imagined by evidence-based policy enthusiasts. (shrink)

This paper defends a challenge, inspired by arguments drawn from contemporary ordinary language philosophy and grounded in experimental data, to certain forms of standard philosophical practice. The challenge is inspired by contemporary philosophers who describe themselves as practicing “ordinary language philosophy”. Contemporary ordinary language philosophy can be divided into constructive and critical approaches. The critical approach to contemporary ordinary language philosophy has been forcefully developed by Avner Baz, who attempts to show that a substantial chunk of contemporary philosophy is fundamentally (...) misguided. I describe Baz’s project and argue that while there is reason to be skeptical of its radical conclusion, it conveys an important truth about discontinuities between ordinary uses of philosophically significant expressions (“know”, e.g.) and their use in philosophical thought experiments. I discuss some evidence from experimental psychology and behavioral economics indicating that there is a risk of overlooking important aspects of meaning or misinterpreting experimental results by focusing only on abstract experimental scenarios, rather than employing more diverse and more ecologically valid experimental designs. I conclude by presenting a revised version of the critical argument from ordinary language. (shrink)

John Broome has developed an account of rationality and reasoning which gives philosophical foundations for choice theory and the psychology of rational agents. We formalize his account into a model that differs from ordinary choice-theoretic models through focusing on psychology and the reasoning process. Within that model, we ask Broome’s central question of whether reasoning can make us more rational: whether it allows us to acquire transitive preferences, consistent beliefs, non-akratic intentions, and so on. We identify three structural types of (...) rationality requirements: consistency requirements, completeness requirements, and closedness requirements. Many standard rationality requirements fall under this typology. Based on three theorems, we argue that reasoning is successful in achieving closedness requirements, but not in achieving consistency or completeness requirements. We assess how far our negative results reveal gaps in Broome's theory, or deficiencies in choice theory and behavioral economics. (shrink)

Since anonymous agents can spread misinformation with impunity, many people advocate for greater accountability for internet speech. This paper provides a veritistic argument that accountability mechanisms can cause significant epistemic problems for internet encyclopedias and social media communities. I show that accountability mechanisms can undermine both the dissemination of true beliefs and the detection of error. Drawing on social psychology and behavioral economics, I suggest alternative mechanisms for increasing the trustworthiness of internet communication.

I investigate whether degreed beliefs are able to play the predictive, explanatory, and modeling roles that they are frequently taken to play. The investigation focuses on evidence—both from sources familiar in epistemology as well as recent work in behavioral economics and cognitive psychology—of variability in agents' apparent degrees of belief. Although such variability has been noticed before, there has been little philosophical discussion of its breadth or of the psychological mechanisms underlying it. Once these are appreciated, the inadequacy (...) of degrees of belief becomes clear. I offer a theoretical alternative to degrees of belief, what I call the filter theory. (shrink)

Determining the precise nature of the connection between preference, choice, and welfare has arguably been the central project in the field of welfare economics, which aims to offer a proper guide for economists in the making of policy decisions that affect people’s welfare. The two leading approaches here historically – the revealed preference and latent preference approaches – seem equally incapable of so guiding economists. I argue that the deadlock here is due to welfare economists’ failure to recognize a (...) crucial distinction between two senses of “preference.” I analyze and defend these senses of “preference,” and argue that each shares a close connection with just one of choice and welfare. This analysis reveals how economists should conceive of both the connections between “preference,” choice, and welfare, and the proper roles of these concepts in welfare economics. I conclude by showing this analysis to best explain the plausibility of two leading alternative approaches from Hausman and Sugden. (shrink)

Editors van Ditmarsch, Hendriks and Verbrugge of this special issue of topiCS on lying describe some recent trends in research on lying from a multidisciplinary perspective, including logic, philosophy, linguistics, psychology, cognitive science, behavioral economics, and artificial intelligence. Furthermore, they outline the seven contributions to this special issue.

Editors van Ditmarsch, Hendriks and Verbrugge of this special issue of topiCS on lying describe some recent trends in research on lying from a multidisciplinary perspective, including logic, philosophy, linguistics, psychology, cognitive science, behavioral economics, and artificial intelligence. Furthermore, they outline the seven contributions to this special issue.

This chapter discusses different perspectives and trends in social decision making, especially the actual processes used by humans when they make decisions in their everyday lives or in business situations. The chapter uses cognitive psychological techniques to break down these processes and set them in their social context. Most of our decisions are made in a social context and are therefore influenced by other people. If you are at an auction and bidding on a popular item, you will try to (...) guess how long the others will keep in the bidding race. Likewise, when you and another person have to coordinate your decision to win a card game you will also try to think about what the other person know and what s/he will do, so you can adjust your choice. In other words, you are trying to come up with a model of the person and his decision-making process. This involves the capability to think about the thoughts and intentions of others, to put yourself in another person's shoes (perspective taking), and to think recursively about your and another person's over several steps (like in a game of chess). Especially, recursive social reasoning is one of the hallmarks of social decision-making. Whereas observational, competitive and cooperative decision-making can all be seen as trying to maximize the own reward or profit, altruistic decision-making blatantly violates this axiomatic principle of behavioral economics. Yet, altruistic behavior is quite common throughout human society. -/- . (shrink)

This entry summarizes an emerging subdiscipline of both empirical bioethics and experimental philosophy (“x-phi”) which has variously been referred to as experimental philosophical bioethics, experimental bioethics, or simply “bioxphi”. Like empirical bioethics, bioxphi uses data-driven research methods to capture what various stakeholders think (feel, judge, etc.) about moral issues of relevance to bioethics. However, like its other parent discipline of x-phi, bioxphi tends to favor experiment-based designs drawn from the cognitive sciences – including psychology, neuroscience, and behavioral economics (...) – to tease out why and how stakeholders think as they do. (shrink)

This paper presents a novel theoretical framework connecting the sunk cost fallacy, ego, and uncertainty as a dynamic interplay within emergent systems. Drawing from the principles of Chiral Dynamics of Emergent Systems (CODES), the theory posits that the sunk cost fallacy is a manifestation of ego’s response to uncertainty, creating a self-reinforcing loop. This framework resolves traditional gaps in behavioral economics, psychology, and philosophy, offering a robust lens to analyze decision-making and consciousness. The paper includes examples, mathematical approximations, (...) and philosophical reflections to argue that this model not only redefines the sunk cost fallacy but also contributes to resolving broader philosophical paradoxes, such as determinism versus free will and Zeno’s paradox. (shrink)

In economics, thought experiments are frequently justified by the difficulty of conducting controlled experiments. They serve several functions, such as establishing causal facts, isolating tendencies, and allowing inferences from models to reality. In this paper, I argue that thought experiments served a further function in economics: facilitating the quantitative definition and measurement of the theoretical concept of utility, thereby bridging the gap between theory and statistical data. I support my argument by a case study, the “hypothetical experiments” of (...) the Norwegian economist Ragnar Frisch (1895-1973). Frisch aimed to eliminate introspection and a subjective concept of utility from economic reasoning. At the same time, he sought behavioral foundations for economic theory that enabled quantitative reasoning. By using thought experiments to justify his set of choice axioms and facilitating the operationalization of utility, Frisch circumvented the problem of observing utility via actual experiments without eliminating the concept of utility from economic theory altogether. As such, these experiments helped Frisch to empirically support the theory’s most important results, such as the laws of demand and supply, without the input of new empirical findings. I suggest that Frisch’s experiments fulfill the main characteristics of thought experiments. (shrink)

Over the years, mathematics and statistics have become increasingly important in the social sciences1 . A look at history quickly confirms this claim. At the beginning of the 20th century most theories in the social sciences were formulated in qualitative terms while quantitative methods did not play a substantial role in their formulation and establishment. Moreover, many practitioners considered mathematical methods to be inappropriate and simply unsuited to foster our understanding of the social domain. Notably, the famous Methodenstreit also concerned (...) the role of mathematics in the social sciences. Here, mathematics was considered to be the method of the natural sciences from which the social sciences had to be separated during the period of maturation of these disciplines. All this changed by the end of the century. By then, mathematical, and especially statistical, methods were standardly used, and their value in the social sciences became relatively uncontested. The use of mathematical and statistical methods is now ubiquitous: Almost all social sciences rely on statistical methods to analyze data and form hypotheses, and almost all of them use (to a greater or lesser extent) a range of mathematical methods to help us understand the social world. Additional indication for the increasing importance of mathematical and statistical methods in the social sciences is the formation of new subdisciplines, and the establishment of specialized journals and societies. Indeed, subdisciplines such as Mathematical Psychology and Mathematical Sociology emerged, and corresponding journals such as The Journal of Mathematical Psychology (since 1964), The Journal of Mathematical Sociology (since 1976), Mathematical Social Sciences (since 1980) as well as the online journals Journal of Artificial Societies and Social Simulation (since 1998) and Mathematical Anthropology and Cultural Theory (since 2000) were established. What is more, societies such as the Society for Mathematical Psychology (since 1976) and the Mathematical Sociology Section of the American Sociological Association (since 1996) were founded. Similar developments can be observed in other countries. The mathematization of economics set in somewhat earlier (Vazquez 1995; Weintraub 2002). However, the use of mathematical methods in economics started booming only in the second half of the last century (Debreu 1991). Contemporary economics is dominated by the mathematical approach, although a certain style of doing economics became more and more under attack in the last decade or so. Recent developments in behavioral economics and experimental economics can also be understood as a reaction against the dominance (and limitations) of an overly mathematical approach to economics. There are similar debates in other social sciences. It is, however, important to stress that problems of one method (such as axiomatization or the use of set theory) can hardly be taken as a sign of bankruptcy of mathematical methods in the social sciences tout court. This chapter surveys mathematical and statistical methods used in the social sciences and discusses some of the philosophical questions they raise. It is divided into two parts. Sections 1 and 2 are devoted to mathematical methods, and Sections 3 to 7 to statistical methods. As several other chapters in this handbook provide detailed accounts of various mathematical methods, our remarks about the latter will be rather short and general. Statistical methods, on the other hand, will be discussed in-depth. (shrink)

I start with some famous comments by the philosopher (psychologist) Ludwig Wittgenstein because Pinker shares with most people (due to the default settings of our evolved innate psychology) certain prejudices about the functioning of the mind and because Wittgenstein offers unique and profound insights into the workings of language, thought and reality (which he viewed as more or less coextensive) not found anywhere else. The last quote is the only reference Pinker makes to Wittgenstein in this volume, which is most (...) unfortunate considering that he was one of the most brilliant and original analysts of language. -/- In the last chapter, using the famous metaphor of Plato’s cave, he beautifully summarizes the book with an overview of how the mind (language, thought, intentional psychology) –a product of blind selfishness, moderated only slightly by automated altruism for close relatives carrying copies of our genes--works automatically, but tries to end on an upbeat note by giving us hope that we can nevertheless employ its vast capabilities to cooperate and make the world a decent place to live. -/- Pinker is certainly aware of but says little about the fact that far more about our psychology is left out than included. Among windows into human nature that are left out or given minimal attention are math and geometry, music and sounds, images, events and causality, ontology (classes of things), dispositions (believing, thinking, judging, intending etc) and the rest of intentional psychology of action, neurotransmitters and entheogens, spiritual states (e.g, satori and enlightenment, brain stimulation and recording, brain damage and behavioral deficits and disorders, games and sports, decision theory (incl. game theory and behavioral economics), animal behavior (very little language but a billion years of shared genetics). Many books have been written about each of these areas of intentional psychology. The data in this book are descriptions, not explanations that show why our brains do it this way or how it is done. How do we know to use the sentences in their various way (i.e., know all their meanings)? This is evolutionary psychology that operates at a more basic level –the level where Wittgenstein is most active. And there is scant attention to context. -/- Nevertheless this is a classic work and with these cautions is still well worth reading. -/- Those wishing a comprehensive up to date framework for human behavior from the modern two systems view may consult my book ‘The Logical Structure of Philosophy, Psychology, Mind and Language in Ludwig Wittgenstein and John Searle’ 2nd ed (2019). Those interested in more of my writings may see ‘Talking Monkeys--Philosophy, Psychology, Science, Religion and Politics on a Doomed Planet--Articles and Reviews 2006-2019 3rd ed (2019), The Logical Structure of Human Behavior (2019), and Suicidal Utopian Delusions in the 21st Century 4th ed (2019). (shrink)

The process of decision making is predictable and irrational according to Daniel Ariely and other economic behaviorists, historians, and philosophers such as Daniel Kahneman or Yuval Noah Harari. Decisions made anteriorly can be, but don’t have to be, present in the actions of a person. Stories and shared belief in myths, especially those that arise from a system of human norms and values and are based on a belief in a “supernatural” order (religion) are important. Because of this, mass cooperation (...) amongst strangers is possible. (shrink)

[This version of the paper has been superseded by "Reason-based choice and context-dependence: An explanatory framework", forthcoming in Economics & Philosophy.] -/- We introduce a “reason-based” way of rationalizing an agent’s choice behaviour, which explains choices by specifying which properties of the options or choice context the agent cares about (the “motivationally salient properties”) and how he or she cares about these properties (the “fundamental preference relation”). Reason-based rationalizations can explain non-classical choice behaviour, including boundedly rational and sophisticated rational (...) behaviour, and predict choices in unobserved contexts, an issue neglected in standard choice theory. We characterize the behavioural implications of different reason-based models and distinguish two kinds of context-dependent motivation: “context-variant” motivation, where the agent cares about different properties in different contexts, and “context-regarding” motivation, where the agent cares not only about properties of the options, but also about properties relating to the context. (shrink)

This review article provides a new perspective on the ethics of green nudging. We advance a new model for assessing the ethical permissibility of green nudges (GNs). On this model, which provides normative guidance for policymakers, a GN is ethically permissible when the intervention is (1) efficacious, (2) cost-effective, and (3) the advantages of the GN (i.e. reducing the environmental harm) are not outweighed by countervailing costs/harms (i.e. for nudgees). While traditional ethical objections to nudges (paternalism, etc.) remain potential normative (...) costs associated with GNs, any such costs must be weighed against the injunction to reduce environmental harm to third parties. (shrink)

The social, behavioral, and a good chunk of the biological sciences concern the nature of individual agency, where our paradigm for an individual is a human being. Theories of economic behavior, of mental function and dysfunction, and of ontogenetic development, for example, are theories of how such individuals act, and of what internal and external factors are determinative of that action. Such theories construe individuals in distinctive ways.

I start with some famous comments by the philosopher (psychologist) Ludwig Wittgenstein because Pinker shares with most people (due to the default settings of our evolved innate psychology) certain prejudices about the functioning of the mind, and because Wittgenstein offers unique and profound insights into the workings of language, thought and reality (which he viewed as more or less coextensive) not found anywhere else. There is only reference to Wittgenstein in this volume, which is most unfortunate considering that he was (...) the most brilliant and original analyst of language. -/- In the last chapter, using the famous metaphor of Plato’s cave, he beautifully summarizes the book with an overview of how the mind (language, thought, intentional psychology) –a product of blind selfishness, moderated only slightly by automated altruism for close relatives carrying copies of our genes (Inclusive Fitness)--works automatically, but tries to end on an upbeat note by giving us hope that we can nevertheless employ its vast capabilities to cooperate and make the world a decent place to live. -/- Pinker is certainly aware of but says little about the fact that far more about our psychology is left out than included. Among windows into human nature that are left out or given minimal attention are math and geometry, music and sounds, images, events and causality, ontology (classes of things or what we know), most of epistemology (how we know), dispositions (believing, thinking, judging, intending etc.) and the rest of intentional psychology of action, neurotransmitters and entheogens, spiritual states (e.g, satori and enlightenment, brain stimulation and recording, brain damage and behavioral deficits and disorders, games and sports, decision theory (incl. game theory and behavioral economics), animal behavior (very little language but a billion years of shared genetics). Many books have been written about each of these areas of intentional psychology. The data in this book are descriptions, not explanations that show why our brains do it this way or how it is done. How do we know to use the sentences in their various way (i.e., know all their meanings)? This is evolutionary psychology that operates at a more basic level –the level where Wittgenstein is most active. And there is scant attention to the context in which words are used = an arena which Wittgenstein pioneered. -/- Nevertheless, this is a classic work and with these cautions is still well worth reading. -/- Those wishing a comprehensive up to date framework for human behavior from the modern two systems view may consult my book ‘The Logical Structure of Philosophy, Psychology, Mind and Language in Ludwig Wittgenstein and John Searle’ 2nd ed (2019). Those interested in more of my writings may see ‘Talking Monkeys--Philosophy, Psychology, Science, Religion and Politics on a Doomed Planet--Articles and Reviews 2006-2019 3rd ed (2019), The Logical Structure of Human Behavior (2019), and Suicidal Utopian Delusions in the 21st Century 4th ed (2019) . (shrink)

Rational choice theory analyzes how an agent can rationally act, given his or her preferences, but says little about where those preferences come from. Preferences are usually assumed to be fixed and exogenously given. Building on related work on reasons and rational choice, we describe a framework for conceptualizing preference formation and preference change. In our model, an agent's preferences are based on certain "motivationally salient" properties of the alternatives over which the preferences are held. Preferences may change as new (...) properties of the alternatives become salient or previously salient properties cease to be salient. Our approach captures endogenous preferences in various contexts and helps to illuminate the distinction between formal and substantive concepts of rationality, as well as the role of perception in rational choice. (shrink)

Since Gintis is a senior economist and I have read some of his previous books with interest, I was expecting some more insights into behavior. Sadly he makes the dead hands of group selection and phenomenology into the centerpieces of his theories of behavior, and this largely invalidates the work. Worse, since he shows such bad judgement here, it calls into question all his previous work. The attempt to resurrect group selection by his friends at Harvard, Nowak and Wilson, a (...) few years ago was one of the major scandals in biology in the last decade, and I have recounted the sad story in my article ‘Altruism, Jesus and the End of the World—how the Templeton Foundation bought a Harvard Professorship and attacked Evolution, Rationality and Civilization -- A review of E.O. Wilson 'The Social Conquest of Earth' (2012) and Nowak and Highfield ‘SuperCooperators’ (2012).’ Unlike Nowak, Gintis does not seem to be motivated by religious fanaticism, but by the strong desire to generate an alternative to the grim realities of human nature, made easy by the (near universal) lack of understanding of basic human biology and blank slateism of behavioral scientists, other academics, and the general public. -/- Gintis rightly attacks (as he has many times before) economists, sociologists and other behavioral scientists for not having a coherent framework to describe behavior. Of course the framework needed to understand behavior is an evolutionary one. Unfortunately he fails to provide one himself (according to his many critics and I concur), and the attempt to graft the rotten corpse of group selection onto whatever economic and psychological theories he has generated in his decades of work, merely invalidates his entire project. Although Gintis makes a valiant effort to understand and explain the genetics, like Wilson and Nowak, he is far from an expert, and like them, the math just blinds him to the biological impossibilities and of course this is the norm in science. As Wittgenstein famously noted on the first page of Culture and Value “There is no religious denomination in which the misuse of metaphysical expressions has been responsible for so much sin as it has in mathematics.” -/- It has always been crystal clear that a gene that causes behavior which decreases its own frequency cannot persist, but this is the core of the notion of group selection. Furthermore, it has been well known and often demonstrated that group selection just reduces to inclusive fitness (kin selection), which, as Dawkins has noted, is just another name for evolution by natural selection. Like Wilson, Gintis has worked in this arena for about 50 years and still has not grasped it, but after the scandal broke, it took me only 3 days to find, read and understand the most relevant professional work, as detailed in my article. It is mind boggling to realize that Gintis and Wilson were unable to accomplish this in nearly half a century. -/- I discuss the errors of group selection and phenomenology that are the norm in academia as special cases of the near universal failure to understand human nature that are destroying America and the world. -/- Those who wish to read all my articles please consult the ebook here Philosophy, Human Nature and the Collapse of Civilization -- Articles and Reviews 2006-2016 by Michael Starks 662p (2016) -/- All of my papers and books have now been published in revised versions both in ebooks and in printed books. -/- Talking Monkeys: Philosophy, Psychology, Science, Religion and Politics on a Doomed Planet - Articles and Reviews 2006-2017 (2017) https://www.amazon.com/dp/B071HVC7YP. -/- The Logical Structure of Philosophy, Psychology, Mind and Language in Ludwig Wittgenstein and John Searle--Articles and Reviews 2006-2016 (2017) https://www.amazon.com/dp/B071P1RP1B. -/- Suicidal Utopian Delusions in the 21st century: Philosophy, Human Nature and the Collapse of Civilization - Articles and Reviews 2006-2017 (2017) https://www.amazon.com/dp/B0711R5LGX -/- . (shrink)

Sustainable economic growth is not only the ultimate goal of business corporations but also the primary target of local governments as well as regional and global economies. One of the cornerstones of sustainable economic growth is ethics. Ethical leaders and employees have great potential for positive influence on decisions and behaviors that lead to sustainability. Ethical behavior, therefore, is expected of everyone in the modern workplace. This paper argues that ethics in the business is the most important sector in leading (...) to profits and being successful in the long run, an organization needs to be driven by strong ethical values, not only profit. (shrink)

One striking observation in the history of rational choice models is that those models have not only been used in economics but spread widely across the social and behavioral sciences. How do such model transfers proceed? By closely studying the early efforts to transfer such models by William Riker – a major protagonist in pushing the adoption of game theoretic models in political science – this article examines the transfer process as one of ‘translation’ by which abstract and (...) mathematical rational choice models were constructed and modified such that they applied to a specific target system in a new domain. In this paper, we argue that to overcome a set of challenges that hampered the straightforward transfer of game theoretic models into political science, Riker complemented theoretical and conceptual modifications of von Neumann and Morgenstern’s game schemes with the use of narratives to turn them into applicable and testable models. As such, those narratives played a crucial role in enabling their transfer and ultimately facilitated the applicability of game theoretic models in political science. (shrink)

The central thesis of my article is that people live a life worthy of a human being only as self-ruling members of some autarchic (or self-governing) communities. On the one hand, nobody is born as a self-ruling individual, and on the other hand, everybody can become such a person by observing progressively the non-aggression principle and, ipso facto, by behaving as a moral being. A self-ruling person has no interest in controlling her neighbors, but in mastering his own impulses, needs, (...) wishes, desires, behaviors, etc. Inasmuch as he is an imperfect being who lives in an imperfect world, he needs to share certain interests, beliefs, values, customs and other characteristics with other people, i.e. to be involved in some communities. Depending on the following four criteria – the regulatory principle, the essential resources, the specific feedback and the fundamental values –, the countless and manifold human communities can be grouped in three categories: (1) affinity communities, (2) economic communities, and (3) civic communities. In other words, every community or human behavior has an affinity, an economic, and a civic dimension. If a civic community is merely a state shaped society, it can be called a political community. All communities are intrinsically variable. Throughout time, they ceaselessly change their composition, values, interpersonal processes and relations, territory, etc. Interestingly enough, the variability is unanimously recognized and accepted in affinity and communities economic, but is denied or abusively interpreted in the case of state shaped societies. If we confuse two types of order − cosmos and taxis – and two types of rule – nomos and thesis –, as well as we exaggerate the importance of certain type of community we bring some social maladies, namely the traditionalism, the commercialism and the civism, (with the worst form of it – the politicality). Whatever the communities they are involved in, all persons relate (implicitly or explicitly) to the libertarian non-aggression principle, living their life in strict accordance with the logical implications of the position they adopt. People who respect the non-aggression axiom necessarily manifest self-control, consideration for the life and property of the others, commitment to offer value for value, love of freedom and a high level of individual responsibility. By contrast, people who violate this axiom – the villains and the statists – invariably strive to control their neighbors, behave as parasites or predators, prefer forced exchanges, reject the personal responsibility (at most accepting the idea of social responsibility), and apply double moral standards. The first category of people generates a libertarian civic discourse as a spontaneous order, and the second creates a political/ statist civic discourse as a result of the human design and will to power. As a spontaneous order, the libertarian civic discourse implies free involvement, peaceful coordination, free expression, free reproduction of ideas and the power of one. Every communication performance in the frame of the libertarian civic discourse is important and has relevant results. All participants to the libertarian civic discourse are automatically members of some self-governing communities (at least members of the general libertarian community). The most important thing for these communities is to be connected to a communicational infrastructure which would make possible free involvement, free expression and the free reproduction of ideas. Inasmuch as today democracy means the tyranny of majority and participatory democracy the tyranny of majority plus the power of vested (and illegitimate) interests, only the emergence of self-governing communities by libertarian discourse offers us a little hope. It’s high time to fall in love (again) with liberty and to embrace the non-aggression principle. We don’t have to create a perfect world, but we can strive to develop our human nature. (shrink)

There are many explanations for the value of money, but they all seem to depend on things like "trust," "shared fiction," "agreement" or even potentially circular logic like that money's value is based on its usefulness as money. But there is a full process by which money, the desire we feel for it, and even how we end up trading it, can emerge naturally from the dynamics of natural selection and human interaction, with a basis in real value, and happening (...) repeatedly and reliably, even if a group of people all agree that money or precious metals are worthless. We discuss this fully in the paper "The Monetary Instinct," but here, for accessibility's sake, the entire concept is described in one-page. (shrink)

In recent decades, behavioral sciences have introduced into economic theories of choice the image of weak willed individuals with limited rationality, whose decisions are affected by systematic errors. From here, theorists of libertarian paternalism originate the thesis of the possibility of State interventions that promote citizens’ welfare by conditioning their choices while, at the same time, safeguarding their freedom. The Author asserts that such a public promotion of individual welfare is equivalent to the transformation of the welfare State into (...) a paternalistic State and that its theorists aim to avoid the debate about the conflict between exercising liberty and containing the public expenditure which is necessary to protect social rights. (shrink)