According to the incentives argument, inequalities in material goods are justifiable if they are to the benefit of the worst off members of society. In this paper, I point out what is easily overlooked, namely that inequalities are justifiable only if they are to the overall benefit of the worst off, that is, in terms of both material and social goods. I then address the question how gains in material goods can be weighed against probable losses in social goods. (...) The ultimate criterion, so my idea, is how these gains and losses affect a person’s ability to reach her goals in life. Based on the idea that goals in life cannot be taken as given, I conclude that the absolute material gains are negligible compared to the losses of social goods and the disadvantage in the relative position caused by material inequalities. (shrink)

We aim to establish the following claim: other factors held constant, the relative weights of the epistemic burdens of competing treatment options serve to determine the options that patient surrogates pursue. Simply put, surrogates confront an incentive, ceteris paribus, to pursue treatment options with respect to which their knowledge is most adequate to the requirements of the case. Regardless of what the patient would choose, options that require more knowledge than the surrogate possesses (or is likely to learn) will either (...) be neglected altogether or deeply discounted in the surrogate’s incentive structure. We establish this claim by arguing that the relation between epistemic burdens and incentives in decision-making is a general feature of surrogate decision-making. After establishing the claim, we draw out some of the implications for surrogate decision-making in medicine and offer philosophical and psychological explanations of the phenomenon. (shrink)

One Rawlsian response to G. A. Cohen’s criticisms of justice as fairness which Cohen canvasses, and then dismisses, is the 'Freedom Objection'. It comes in two versions. The 'First Version' asserts that there is an unresolved trilemma among the three principles of equality, Pareto-optimality, and freedom of occupational choice, while the 'Second Version' imputes to Rawls’s theory a concern to protect occupational freedom over equality of condition. This article is mainly concerned with advancing three claims. First, the 'ethical solution' Cohen (...) advances against the First Version of the Freedom Objection does not grant a fair hearing to the Freedom Objection. Second, the distinction Cohen presses between the legal and moral right of occupational choice in his response to the Second Version cannot save him from worries about Stalinist coercion. Third, Cohen’s response to the First Version of the Freedom Objection is actually in tension with his response to the Second Version of the Freedom Objection. (shrink)

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

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

To nudge is to design choice contexts in order to improve choice outcomes. Richard Thaler and Cass Sunstein emphatically endorse nudging but reject more restrictive means. In contrast, I argue that the behavioral psychology that motivates nudging also motivates what may be called jolting — i.e. the design of choice content. I defend nudging and jolting by distinguishing them from the sometimes oppressive means with which they can be implemented, by responding to some common arguments against nudging, and by showing (...) how respect for preferences over option sets and their aggregate properties may require the trimming of option sets, as well as helpful choice contexts. (shrink)

Taking people’s longevity as a measure of good life, humankind can proudly say that the average person is living a much longer life than ever before. The AIDS epidemic has however for the first time in decades stalled and in some cases even reverted this trend in a number of countries. Climate change is increasingly becoming a major challenge for food security and we can anticipate that hunger caused by crop damages will become much more common. -/- Since many of (...) the challenges humanity faced in the past were overcome by inventive solutions coming from the life sciences, we are compelled to reconsider how we incentivize science and technology development so that those in need can benefit more broadly from scientific research. There is a huge portion of the world population that is in urgent need for medicines to combat diseases that are currently neglected by the scientific community and could immensely benefit from agricultural research that specifically targets their environmental conditions. At the same time efforts have to be made to make the fruits of current and future research more widely accessible. These changes would have to be backed by a range of moral arguments to attract people with diverging notions of global justice. This article explores the main ethical theories used to demand a greater share in the benefits from scientific progress for the poor. Since life sciences bring about a number of special concerns, a short list of conflictive issues is also offered. (shrink)

Taking into consideration the extremely harsh public health conditions faced by the majority of the world population, the Health Impact Fund (HIF) proposal seeks to make the intellectual property regimes more in line with human rights obligations. While prioritizing access to medicines and research on neglected diseases, the HIF makes many compromises in order to be conceived as politically feasible and to retain a compensation character that makes its implementation justified solely on basis of negative duties. Despite that current global (...) health realities make such steps reasonable, the paper looks up the negative effects on one overlooked human right: the right to participate in scientific advancement. (shrink)

Political theorists have offered many accounts of collective decision-making under pluralism. I discuss a key dimension on which such accounts differ: the importance assigned not only to the choices made but also to the reasons underlying those choices. On that dimension, different accounts lie in between two extremes. The ‘minimal liberal account’ holds that collective decisions should be made only on practical actions or policies and that underlying reasons should be kept private. The ‘comprehensive deliberative account’ stresses the importance of (...) giving reasons for collective decisions, where such reasons should also be collectively decided. I compare these two accounts on the basis of a formal model developed in the growing literature on the ‘discursive dilemma’ and ‘judgment aggregation’ and address several questions: What is the trade-off between the (minimal liberal) demand for reaching agreement on outcomes and the (comprehensive deliberative) demand for reason-giving? How large should the ‘sphere of public reason’ be? When do the decision procedures suggested by the two accounts agree and when not? How good are these procedures at truthtracking on factual matters? What strategic incentives do they generate for decision-makers? My discussion identifies what is at stake in the choice between minimal liberal and comprehensive deliberative accounts of collective decisionmaking, and sheds light not only on these two ideal-typical accounts themselves, but also on many characteristics that intermediate accounts share with them. (shrink)

Kant’s most canonical argument against suicide, the universal law argument, is widely dismissed. This paper attempts to save it, showing that a suicide maxim, universalized, undermines all bases for practical law, resisting both the non-negotiable value of free rational willing and the ordinary array of sensuous commitments that inform prudential incentives. Suicide therefore undermines moral law governed community as a whole, threatening ‘savage disorder’. In pursuing this argument, I propose a non-teleological and non-theoretical nature – a ‘practical nature’ or (...) moral law governed whole – the realization of which morality demands. (shrink)

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

Evidentialism is the thesis that all reasons to believe p are evidence for p. Pragmatists hold that pragmatic considerations – incentives for believing – can also be reasons to believe. Nishi Shah, Thomas Kelly and others have argued for evidentialism on the grounds that incentives for belief fail a ‘reasoning constraint’ on reasons: roughly, reasons must be considerations we can reason from, but we cannot reason from incentives to belief. In the first half of the paper, I (...) show that this argument fails: the claim that we cannot reason from incentives is either false or does not combine with the reasoning constraint to support evidentialism. However, the failure of this argument suggests an alternative route to evidentialism. Roughly, reasons must be premises of good reasoning, but it is not good reasoning to reason from incentives to belief. The second half of the paper develops and defends this argument for evidentialism. (shrink)

The communist norm requires that scientists widely share the results of their work. Where did this norm come from, and how does it persist? Michael Strevens provides a partial answer to these questions by showing that scientists should be willing to sign a social contract that mandates sharing. However, he also argues that it is not in an individual credit-maximizing scientist's interest to follow this norm. I argue against Strevens that individual scientists can rationally conform to the communist norm, even (...) in the absence of a social contract or other ways of socially enforcing the norm, by proving results to this effect in a game-theoretic model. This shows that the incentives provided to scientists through the priority rule are sufficient to explain both the origins and the persistence of the communist norm, adding to previous results emphasizing the benefits of the incentive structure created by the priority rule. (shrink)

There is a commonly made distinction between two types of scientists: risk-taking, trailblazing mavericks and detail-oriented followers. A number of recent papers have discussed the question what a desirable mixture of mavericks and followers looks like. Answering this question is most useful if a scientific community can be steered toward such a desirable mixture. One attractive route is through credit incentives: manipulating rewards so that reward-seeking scientists are likely to form the desired mixture of their own accord. Here I (...) argue that this idea is less straightforward than it may seem. Interpreting mavericks as scientists who prioritize rewards over speed and risk, I show in a deliberatively simple model that there is a fixed mixture which is not particularly likely to be desirable and which credit incentives cannot alter. I consider a way around this result, but this has some major drawbacks. I conclude that credit incentives are not as promising a way to create a desirable mixture of mavericks and followers as one might have thought. (shrink)

Contemporary republicans have adopted a less-than-charitable attitude toward private beneficence, especially when it is directed to the poor, worrying that rich patrons may be in a position to exercise arbitrary power over their impoverished clients. These concerns have led them to support impartial public provision by way of state welfare programs, including an unconditional basic income (UBI). In contrast to this administrative model of public welfare, I will propose a competitive model in which the state regulates and subsidizes a decentralized (...) and nonstatist provision of support for the poor. This model will fix the historically objectionable features of private provision by having the state prevent collusion among private charities, deliver information to recipients about alternative sources of assistance, and give substantial grants to charities as well as tax incentives and vouchers to donors. I will contend that such an approach would do a better job of minimizing domination of the poor than traditional welfare states and may prove more politically feasible than a UBI, at least in the near term in certain national contexts. (shrink)

Whether or not capitalism is compatible with ethics is a long standing dispute. We take up an approach to virtue ethics inspired by Adam Smith and consider how market competition influences the virtues most associated with modern commercial society. Up to a point, competition nurtures and supports such virtues as prudence, temperance, civility, industriousness and honesty. But there are also various mechanisms by which competition can have deleterious effects on the institutions and incentives necessary for sustaining even these most (...) commercially friendly of virtues. It is often supposed that if competitive markets are good, more competition must always be better. However, in the long run competition enhancing policies that neglect the nurturing and support of the bourgeois virtues may undermine the continued flourishing of modern commercial society. (shrink)

Investments in mitigating climate change have their greatest environmental impact over the long term. As a consequence the incentives to invest in cutting greenhouse gas emissions today appear to be weak. In response to this challenge, there has been increasing attention given to the idea that current generations can be motivated to start financing mitigation at much higher levels today by shifting these costs to the future through national debt. Shifting costs to the future in this way benefits future (...) generations by break- ing existing patterns of delaying large-scale investment in low-carbon energy and efficiency. As we will see in this chapter, it does appear to be technically feasible to transfer the costs of investments made today to the future in such a way that people alive today do not incur any net cost. the aim of this chapter is to take seriously the possibility that climate change has produced an extremely intractable political problem and that we must now consider strong measures that can break existing patterns of delaying mitigation. I defend the claim that if climate change involves a stark conflict of interests between current and future generations, then borrowing from the future would be both strategically and normatively much better than the status quo. Nevertheless, I challenge the borrowing from the future proposal on the grounds that it is not in fact the powerful tool for motivating existing agents that its proponents imagine it to be. The purpose of developing this critical argument is not, however, simply to throw doubt onto the idea of borrowing from the future. If we really do find ourselves in a political context where the prospects for effective action are very poor then strategic forms of buck-passing may make an important positive contribution to avoiding dangerous global cli- mate change. Consequently, if debt financing is not as powerful of a motivational tool as imagined we still have strong reasons, I will argue, to identify other strategies that will change agents’ incentive structures. To this end, I propose an alternative form of passing on the costs of mitigation to the future that warrants consideration. (shrink)

This article adapts John Rawls’s writings, arguing that past injustice can change what we ought to publicly affirm as the standard of justice today. My approach differs from forward-looking approaches based on alleviating prospective disadvantage and backward-looking historical entitlement approaches. In different contexts, Rawls’s own concern for the ‘social bases of self-respect’ and equal citizenship may require public endorsement of different principles or specifications of the standard of justice. Rawls’s difference principle focuses on the least advantaged socioeconomic group. I argue (...) that a historicized difference principle considers the relative standing of racial, gender, and other historically stigmatized groups; provides their members assurance by weakening incentives to manipulate justice to another group’s advantage; and may result in policies resembling reparations, though justified by forward-looking considerations of self-respect and public assurance. I then examine how disrespectful justifications were historically used to forcibly include indigenous peoples as citizens. While Rawls thinks providing citizens one package of basic liberties signals respect, indigenous self-government could better support self-respect. I invoke Rawlsian international justice, which calls for mutual respect between peoples. Indigenous peoples’ status should reflect their past and persisting peoplehood, providing assurance by weakening incentives to unjustly transform international into domestic contexts. (shrink)

Concerns that people would be disinclined to voluntarily undergo moral enhancement have led to suggestions that an incentivised programme should be introduced to encourage participation. This paper argues that, while such measures do not necessarily result in coercion or undue inducement (issues with which one may typically associate the use of incentives in general), the use of incentives for this purpose may present a taboo tradeoff. This is due to empirical research suggesting that those characteristics likely to be (...) affected by moral enhancement are often perceived as fundamental to the self; therefore, any attempt to put a price on such traits would likely be deemed morally unacceptable by those who hold this view. A better approach to address the possible lack of participation may be to instead invest in alternative marketing strategies and remove incentives altogether. (shrink)

Decision theory explains weakness of will as the result of a conflict of incentives between different transient agents. In this framework, self-control can only be achieved by the I-now altering the incentives or choice-sets of future selves. There is no role for an extended agency over time. However, it is possible to extend game theory to allow multiple levels of agency. At the inter-personal level, theories of team reasoning allow teams to be agents, as well as individuals. I (...) apply team reasoning at the intra-personal level, taking the self as a team of transient agents over time. This allows agents to ask, not just “what should I-now do?’, but also ‘What should I, the person over time do?’, which may enable agents to achieve self-control. The resulting account is Aristotelian in flavour, as it involves reasoning schemata and perception, and it is compatible with some of the psychological findings about self-control. (shrink)

Hobbes postulates a social contract to formalize our collective transition from the state of nature to civil society. The prisoner’s dilemma challenges both the mechanics and the outcome of that thought experiment. The incentives for reneging are supposedly strong enough to keep rational persons from cooperating. This paper argues that the prisoner’s dilemma undermines a position Hobbes does not hold. The context and parameters of the social contract steer it safely between the horns of the dilemma. Specifically, in a (...) setting as hostile as the state of nature, Hobbes’s emphasis on self-interest places a premium on survival, and thereby on adaptability, which then promotes progressive concessions toward peaceful coexistence. This transforms the relevant model of rationality from utility maximization to utility satisficing, thus favoring the pursuit of a mutually satisfactory outcome over that of the best personal outcome. The difference not only obviates the prisoner’s dilemma but also better approximates the state of nature while leaving a viable way out. (shrink)

David Miller argues that national identity is indispensable for the successful functioning of a liberal democracy. National identity makes important contributions to liberal democratic institutions, including creating incentives for the fulfilment of civic duties, facilitating deliberative democracy, and consolidating representative democracy. Thus, a shared identity is indispensable for liberal democracy and grounds a good claim for self-determination. Because Miller’s arguments appeal to the instrumental values of a national culture, I call his argument ‘instrumental value’ arguments. In this paper, I (...) examine the instrumental value arguments and show that they fail to justify a group’s right to self-determination. (shrink)

This monographic chapter explains how expected utility (EU) theory arose in von Neumann and Morgenstern, how it was called into question by Allais and others, and how it gave way to non-EU theories, at least among the specialized quarters of decion theory. I organize the narrative around the idea that the successive theoretical moves amounted to resolving Duhem-Quine underdetermination problems, so they can be assessed in terms of the philosophical recommendations made to overcome these problems. I actually follow Duhem's recommendation, (...) which was essentially to rely on the passing of time to make many experiments and arguments available, and evebntually strike a balance between competing theories on the basis of this improved knowledge. Although Duhem's solution seems disappointingly vague, relying as it does on "bon sens" to bring an end to the temporal process, I do not think there is any better one in the philosophical literature, and I apply it here for what it is worth. In this perspective, EU theorists were justified in resisting the first attempts at refuting their theory, including Allais's in the 50s, but they would have lacked "bon sens" in not acknowledging their defeat in the 80s, after the long process of pros and cons had sufficiently matured. This primary Duhemian theme is actually combined with a secondary theme - normativity. I suggest that EU theory was normative at its very beginning and has remained so all along, and I express dissatisfaction with the orthodox view that it could be treated as a straightforward descriptive theory for purposes of prediction and scientific test. This view is usually accompanied with a faulty historical reconstruction, according to which EU theorists initially formulated the VNM axioms descriptively and retreated to a normative construal once they fell threatened by empirical refutation. From my historical study, things did not evolve in this way, and the theory was both proposed and rebutted on the basis of normative arguments already in the 1950s. The ensuing, major problem was to make choice experiments compatible with this inherently normative feature of theory. Compability was obtained in some experiments, but implicitly and somewhat confusingly, for instance by excluding overtly incoherent subjects or by creating strong incentives for the subjects to reflect on the questions and provide answers they would be able to defend. I also claim that Allais had an intuition of how to combine testability and normativity, unlike most later experimenters, and that it would have been more fruitful to work from his intuition than to make choice experiments of the naively empirical style that flourished after him. In sum, it can be said that the underdetermination process accompanying EUT was resolved in a Duhemian way, but this was not without major inefficiencies. To embody explicit rationality considerations into experimental schemes right from the beginning would have limited the scope of empirical research, avoided wasting resources to get only minor findings, and speeded up the Duhemian process of groping towards a choice among competing theories. (shrink)

Elijah Millgram’s book The Great Endarkenment takes philosophy to task for failing to note the kinds of creatures we are (serial hyperspecializers) and what that means for philosophy. In this commentary, I will complicate the picture he draws, while suggesting a more hopeful path forward. First, I argue that we are not actually serial hyperspecializers. Nevertheless, we are hyperspecializers, and this is the main source of the looming endarkenment. I will suggest that a proper understanding of expertise, particularly the requirement (...) that experts (at least experts whose success is not readily assessable) be required to explicate their judgments helps to mitigate the threat of siloed expertise and endarkenment. Further, I argue that grappling directly with the institutional structures that encourage narrow and isolated hyperspecialists in academia can be a way to avoid endarkenment problems. The current landscape of academia, with its valorization of narrow disciplinary expertise, is neither necessary nor sustainable. In order to change this landscape, we need to understand how current incentives construct epistemic niches, and what we might change in order to reshape the ecology of academia. (shrink)

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

Impairment of self-control is often said to be a defining feature of addiction. Yet many addicts display what appears to be a considerable amount of control over their drug-oriented actions. Not only are their actions clearly intentional and frequently carried out in a conscious and deliberate manner, there is evidence that many addicts are responsive to a wide range of ordinary incentives and counter-incentives. Moreover, addicts have a wide variety of reasons for using drugs, reasons which often seem (...) to go a long way towards explaining their drug-oriented behavior. Many use drugs, for example, to cope with stressful or traumatic experiences. In this article I argue that some standard philosophical explanations of addicts’ impairment of self-control are inadequate, and propose an alternative. (shrink)

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

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

Recently, it has been objected that naïve realism is inconsistent with an empirically well-supported claim that mental states of the same fundamental kind as ordinary conscious seeing can occur unconsciously (SFK). The main aim of this paper is to establish the following conditional claim: if SFK turns out to be true, the naïve realist can and should accommodate it into her theory. Regarding the antecedent of this conditional, I suggest that empirical evidence renders SFK plausible but not obvious. For it (...) is possible that what is currently advocated as unconscious perception of the stimulus is in fact momentaneous perceptual awareness (or residual perceptual awareness) of the stimulus making the subject prone to judge in some way rather than another, or to act in some way rather than another. As to the apodosis, I show that neither the core of naïve realism nor any of its main motivations is undermined if SFK is assumed. On the contrary, certain incentives for endorsing naïve realism become more tempting on this assumption. Since the main motivations for naïve realism retain force under SFK, intentionalism is neither compulsory nor the best available explanation of unconscious perception. (shrink)

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

When visual attention is directed away from a stimulus, neural processing is weak and strength and precision of sensory data decreases. From a computational perspective, in such situations observers should give more weight to prior expectations in order to behave optimally during a discrimination task. Here we test a signal detection theoretic model that counter-intuitively predicts subjects will do just the opposite in a discrimination task with two stimuli, one attended and one unattended: when subjects are probed to discriminate the (...) unattended stimulus, they rely less on prior information about the probed stimulus’ identity. The model is in part inspired by recent findings that attention reduces trial-by-trial variability of the neuronal population response and that they use a common criterion for attended and unattended trials. In five different visual discrimination experiments, when attention was directed away from the target stimulus, subjects did not adjust their response bias in reaction to a change in stimulus presentation frequency despite being fully informed and despite the presence of performance feedback and monetary and social incentives. This indicates that subjects did not rely more on the priors under conditions of inattention as would be predicted by a Bayes-optimal observer model. These results inform and constrain future models of Bayesian inference in the human brain. (shrink)

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

This paper reviews current initiatives to establish carbon offset forests in suburban and peri-urban environments. While moments of density occur within urban territories the general spatial condition is one of fragmented and patchy networks made up of a heterogeneous mix of residential enclaves, industrial parks, waste sites, infrastructure easements interspersed with forests, agriculture, leftover voids and overlooked open space. These overlooked open spaces have the potential to form a new green urban structure of carbon offset forests as cities respond to (...) the carbon economy. Furthermore such urban spaces are not likely to diminish over time as cities are not only growing larger but are becoming more dispersed according to recent World Bank reports. This strong trend is not limited to developed or developing cities but is a worldwide phenomenon. In the future, policy incentives for carbon sequestration will drive land use change in rural and urban areas alike. The paper documents projects in Blacktown City Council in Western Sydney. (shrink)

Culture is a notoriously elusive concept. This fact has done nothing to hinder its popularity in contemporary analytic political philosophy among writers like John Rawls, Will Kymlicka, Michael Walzer, David Miller, Iris Marion Young, Joseph Raz, Avishai Margalit and Bikhu Parekh, among many others. However, this should stop, both for the metaphysical reason that the concept of culture, like that of race, is itself either incoherent or lacking a referent in reality, and for several normative reasons. I focus on the (...) following interconnected points: • The vagueness of the term allows a myriad of candidates to claim rights, and typically to the detriment of increased equality and environmental goals . • Cultural capital cannot be regulated in the way that political capital must be regulated without undermining the cultures supposedly being protected. And the possession of cultural capital is almost never democratically regulated. In particular, granting cultures political status creates intergenerational conflict, rewarding the elders and creating incentives to be conservative and restrict cultural mobility of the younger generation. •The notion of a group owning “its” culture is conceptually suspect and corrupted by the foregoing points about unequal cultural capital. In defending a group’s right to preserve its culture we do not defend equally the rights of the individuals that make it up , and we ignore altogether the rights of those who may be unfairly denied recognition as “members” of the culture. (shrink)

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

The necessity for a government “lender of last resort” has been advanced as a justification for central banking. In this paper, I compare lending practices under central banking with those that would be likely to exist under a system of fractional-reserve free banking (FRFB). To do this I examine the underlying nature of banks as warehousing and credit-granting institutions and consider how redemption runs can arise as a consequence of fractional reserves in this system. Following the work of Thornton and (...) Bagehot, I describe principles of prudent lending that can be used to stem a redemption run when it arises. I examine the market incentives that apply under FRFB and how these incentives are perverted under a system of central banking. I find that a government central bank is not well-placed to lend according to prudent standards, and in fact is likely to use its power to pursue political goals that are at odds with prudent lending. I examine the US financial crisis and the actions of the Federal Reserve System to illustrate this view. (shrink)

The truth about health care policy lies between two exaggerated views: a market view in which individuals purchase their own health care from profit maximizing health-care firms and a control view in which costs are controlled by regulations limiting which treatments health insurance will pay for. This essay suggests a way to avoid on the one hand the suffering, unfairness, and abandonment of solidarity entailed by the market view and, on the other hand, to diminish the inflexibility and inefficiency of (...) the control view. It suggests that the way to mitigate these problems is to recognize the malleability of motivation and the range of factors, in addition to financial incentives, that may influence the behavior of patients and especially physicians. (shrink)

In the attempt of defending an interpretation of David Hume's moral and political philosophy connected to classical utilitarianism, intervenes in a key way the so called problem of the " Sensitive Knave " raised by this author at the end of his more utilitarian work, the Enquiry Concerning the Principles of Morals. According to the classic interpretation of this fragment, the utilitarian rationality in politics would clash with morality turning useless the latter. Therefore, in the political area the defense of (...) a moral utilitarianism would be an auto contradictory task. In order to show that, first, Hume does not say anything similar to this and second, that even indicates the way of overcoming this apparent contradiction between morality and rationality, we analyze briefly the arguments from which there comes basically this "anti-utilitarian" standard interpretation, and we defend an interpretation of the humean discussion on the problem of the supposed conflict between morality and rationality, or of rational incentives for immoral behavior, which allows to explain better Hume's position on this problem. Finally, we propose an instance of overcoming the contradiction morality/ rationality by a rule adjusted utilitarianism centered on the idea of the "progressive development of artificial institutions of reinforcement of morality", that Hume himself would suggest in other places in which he approaches the topic of the apparent contradiction between "morality" and "knavery". We propose also possible lines of future development of this idea, between them its use to clarify the relation of David Hume's thought with certain forms of contemporary liberalism. (shrink)

The theory of possible worlds has permeated analytic philosophy in recent decades, and its best versions have a consequence which has gone largely unnoticed: in addition to the panoply of possible worlds, there are a great many impossible worlds. A uniform ontological method alone should bring the friends of possible worlds to adopt impossible worlds, I argue, but the theory's applications also provide strong incentives. In particular, the theory facilitates an account of counterfactuals which avoids several of the implausible (...) results of David Lewis's account, and it paves the way for the analogues of Kripkean semantics for epistemic and relevant logics. On the theories of possible worlds as abstract objects, worlds bear a strong resemblance to propositions. I contend that if there are distinct necessarily false propositions, then there are likewise distinct impossible worlds. However, one who regards possible worlds as concrete objects must not recognize impossible worlds, in part because concrete worlds cannot misrepresent certain features of reality, as some impossible worlds must. Accordingly, I defend and develop a theory of impossible worlds as maximal impossible states of affairs. Impossible worlds perform admirably in the analysis of counterfactuals with impossible antecedents. I argue that, contrary to standard accounts, not all counterpossibles are trivially true, and I develop a Lewis-style semantics which allows this result. The point is crucial, since many views presuppose that some counterpossibles are substantive philosophical truths. Finally, I show that impossible worlds hold great promise for doxastic and relevant logics. Epistemic logic needs a domain of propositions which is not closed under strict implication to avoid the problem of logical omniscience, and relevant logic needs such a domain to avoid the famous paradoxes of implication. In sum, impossible world theory promises natural, elegant solutions to philosophical problems in numerous areas where possible worlds alone flounder. These solutions come to most possible world theorists at no cost, since the existence of impossible worlds is entailed by theses they already hold. (shrink)

In the absence of kidney markets, alternative institutions for exchanging kidneys have arisen to give donors incentives to donate. I examine thirteen such institutions, and ask whether moral arguments against markets, such as commodification, apply to them or not. I find that most arguments against kidney arguments also argue against these alternative institutions, meaning those arguments are not strong enough to prevent society from using institutions to exchange kidneys. Two arguments that do explain which kidney exchange institutions are socially (...) accepted and which are not are that institutions should not be want-regarding and should not be exploitative.Screening donors to eliminate those with socially unacceptable motives for donation and those who are in a position of being exploited could make kidney markets acceptable, since they would then only be vulnerable to arguments which have not prevented alternative exchange institutions from functioning. (shrink)

With the advent of the “Clean India” campaign in India, a renewed focus on cleanliness has started, with a special focus on sanitation. There have been efforts in the past to provide sanitation related services. However, there were several challenges in provisioning. Provision of sanitation is a public health imperative given increased instances of antimicrobial resistance in India. This paper focuses on sanitation provisioning in the city of Mumbai, especially in the slums of Mumbai. The paper compares and contrasts different (...) models of sanitation provision including supply-led provisioning of sanitation by the Indian government to demand-led provisioning of sanitation through a World Bank funded “Slum Sanitation Program” (SSP). The paper also outlines a comparative perspective on the implementation and usage of toilet blocks. The author presents the theory of social networks and positive peer pressure and argues that these will amplify the effect of other incentives. With the help of an illustration, this paper concludes that the sustainable sanitation policy should look at facilitating and creating the infrastructure as a network and not strictly at building toilet blocks. (shrink)

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

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