Some externalists have recently argued that the unity of theoretical and practical reason implies that epistemic justification is factive. It is argued that arguments for the factivity of epistemic justification either (i) equate two actions that are in fact different, or (ii) make the unwarranted assumption that the by-relation transmits justification. The unity of reason does not imply that epistemic justification is factive.

According to the safety condition, a subject knows that p only if she would believe that p only if p was true. The safety condition has been a very popular necessary condition for knowledge of late. However, it is well documented that the safety condition is trivially satisfied in cases where the subject believes in a necessary truth. This is for the simple reason that a necessary truth is true in all possible worlds, and therefore it is true in all (...) possible worlds where it is believed. But clearly, all beliefs concerning necessary truths do not amount to knowledge. The safety theorists have attempted to deal with the problem caused by necessary truths by restricting the safety condition to purely contingent truths and by globalizing the safety condition to a set of propositions. Both of these solutions are problematic. The principal aim of this paper is to develop a version of the safety condition that is able to deal with cases featuring necessary truths. (shrink)

According to moral encroachment facts about epistemic justification can vary with moral factors that are unrelated to the truth of the belief. Most of the literature on this topic has focused on how beliefs can wrong, and whether the data that moral encroachers offer in support of their view can be explained within a purist framework. A largely neglected question has been what kind of consequences moral encroachment would have for epistemic justification if the thesis were true. Here I remedy (...) this shortcoming by examining what kind of structural implications moral encroachment has for epistemic justification. (shrink)

In order to deal with the problem caused by environmental luck some proponents of robust virtue epistemology have attempted to argue that in virtue of satisfying the ability condition one will satisfy the safety condition. Call this idea the entailment thesis. In this paper it will be argued that the arguments that have been laid down for the entailment thesis entail a wrong kind of safety condition, one that we do not have in mind when we require our beliefs to (...) be safe from error in order for them to be knowledge. (shrink)

According to all varieties of virtue reliabilism knowledge is always gained through the exercise of epistemic competences. These competences can be conceived as competences to form true beliefs, or as competences to know. I will present a short but decisive argument against the idea that knowledge is always gained through the exercise of competences to know. The competence to know isn’t necessary for gaining knowledge.

Throughout the years, Sosa has taken different views on the safety condition on knowledge. In his early work, he endorsed the safety condition, but later retracted this view when first developing his much discussed virtue epistemology. Recently, Sosa has further developed his virtue theory with the notion of competence and has developed an accompanying, modified safety condition that he maintains is entailed by that theory: the SSS-safety condition. Sosa's view is that this condition holds on both knowledge and action, because (...) both knowledge and action are the manifestations of competence. The SSS-safety condition, roughly, says that if S were to make an attempt at φ-ing under certain specified shape-situation pairs, holding fixed their seat, then S would φ. The argument of this paper is that this new SSS-safety condition does not hold on either knowledge or action. We argue for this conclusion by providing a principled way to generate counter-examples to the condition for both knowledge and action. The reasoning is that there can exist a non-empty symmetric difference between the sets of shape-situation pairs under which distinct agents can manifest their epistemic and pragmatic competences, and if there can exist such a symmetric difference then the SSS-safety condition fails to hold. (shrink)

The notion of credit plays a central role in virtue epistemology and in the literature on moral worth. While virtue epistemologists and ethicists have devoted a significant amount of work to providing an account of creditable success, a unified theory of credit applicable to both epistemology and ethics, as well as a discussion of the general form it should take, are largely missing from the literature. Our goal is to lay out a theory of credit that seems to underlie much (...) of the discussion in virtue epistemology, which we dub the Cake Theory. We argue that given the goals that virtue epistemologists and ethicists who discuss moral worth have, this theory is problematic, for it makes credit depend on the wrong facts. (shrink)

According to robust virtue epistemology, the difference between knowledge and mere true belief is that in cases of knowledge, the subject’s cognitive success is attributable to her cognitive agency. But what does it take for a subject’s cognitive success to be attributable to her cognitive agency? A promising answer is that the subject’s cognitive abilities have to contribute to the safety of her epistemic standing with respect to her inquiry, in order for her cognitive success to be attributable to her (...) cognitive agency. Call this idea the contribution thesis. The author will argue that the contribution thesis follows naturally from virtue epistemological accounts of knowledge, and that it is precisely the contribution thesis that allows the virtue epistemologist to deal with a wide variety of objections. Nevertheless, the principal aim of this paper is to argue that virtue epistemological theories of knowledge that are committed to the contribution thesis are ultimately untenable. There are cases of knowledge where the subject’s cognitive abilities do not improve the safety of the subject’s belief. (shrink)

How can we figure out what’s right or wrong, if moral truths are neither self-evident nor something we can perceive? Very roughly, the method of reflective equilibrium (RE) says that we should begin moral inquiry from what we already confidently think, seeking to find a a match between our initial convictions and general principles that are well-supported by background theories, mutually adjusting both until we reach a coherent outlook in which our beliefs are in harmony (the equilibrium part) and we (...) know why and how they support each other (the reflective part). It has been central to the self-understanding of normative ethics and other branches of philosophy in the last half a century. In this chapter, we examine the history of the idea of RE and introduce a schema for generating 256 variants. We explain why RE is subject to serious objections insofar as it purports to yield epistemic justification in virtue of achieving coherence. However, we also develop a new argument to the effect that RE is the best feasible method for us to achieve moral understanding and the ability to justify our judgments to others. It may thus be crucial for responsible moral inquiry, even if coherence among considered judgments and principles is neither sufficient nor necessary for justified moral belief. (shrink)

This paper offers a new account of the epistemic significance of disagreement which is grounded in two assumptions; that knowledge is the norm of belief and, that the safety condition is a necessary condition for knowledge. These assumptions motivate a modal definition of epistemic peerhood, which is much easier to operate on than the more traditional definitions of epistemic peerhood. The modal account of the epistemic significance of disagreement yields plausible results regarding cases of disagreement. Furthermore, it is able to (...) tap into the intuitions that have motivated the conformist and the nonconformist positions and it locates a fruitful middle-ground between these two conflicting positions. It will be shown that the conformist is correct in that cases of real peer disagreement force us to suspend our judgment. The reason for this is that in cases of real peer disagreement our beliefs fail to be safe. The nonconformist, on the other hand, is right in that disagreement in itself does not have any epistemic power. It is only by the grace of nature that we gain knowledge. The fact that someone disagrees with you does not mean that you do not have knowledge. (shrink)

I will present a novel account of justification in terms of knowledge on which one is justified in believing p just in case one could know that p. My main aim is to unravel some of the formal properties that justification has in virtue of its connection to knowledge. Assuming that safety is at least a necessary condition for knowledge, I show that justification doesn’t iterate trivially; isn’t a luminous condition; is closed under a certain kind of multi-premise closure principle, (...) but; surprisingly one can nevertheless believe with justification a set of claims that’s jointly inconsistent. This last feature allows for a rather satisfying solution to the preface paradox. Finally, I contrast my account with other knowledge-first accounts of justification. (shrink)

According to the extended mind thesis, cognitive processes are not confined to the nervous system but can extend beyond skin and skull to notebooks, iPhones, computers and such. The extended mind thesis is a metaphysical thesis about the material basis of our cognition. As such, whether the thesis is true can have implications for epistemological issues. Carter has recently argued that safety-based theories of knowledge are in tension with the extended mind hypothesis, since the safety condition implies that there is (...) an epistemic difference between subjects who form their beliefs via their biological capacities and between subjects who have extended their cognition. Kelp, on the other hand, has argued that a safety-based theory of knowledge can be correct only if the extended mind thesis is true. While these claims are not logically inconsistent, they do leave the safety theorist in an uncomfortable position. I will argue that safety-based theories of knowledge are not hostage to the truth of the extended mind thesis, and that once the safety condition is properly understood it is not in tension with the extended mind thesis. (shrink)

Most of the literature surrounding virtue reliabilism revolves around issues pertaining to the analysis of knowledge. With the exception of the lottery paradox, virtue reliabilists have paid relatively little attention to classic epistemological paradoxes, such as Moore’s paradox. This is a significant omission given how central role such paradoxes have in epistemic theorizing. In this essay I take a step towards remedying this shortcoming by providing a solution to Moore’s paradox. The solution that I offer stems directly from the core (...) of virtue reliabilism. (shrink)

Knowledge defeat occurs when a subject knows that _p_, gains a defeater for her belief, and thereby loses her knowledge without necessarily losing her belief. It’s far from obvious that externalists can accommodate putative cases of knowledge defeat since a belief that satisfies the externalist conditions for knowledge can satisfy those conditions even if the subject later gains a defeater for her belief. I’ll argue that virtue reliabilists can accommodate defeat intuitions via a new kind of error theory. I argue (...) that in cases where the subject holds dogmatically onto her belief in the face of an apparent defeater, her belief never qualified as knowledge, since the belief was not gained via an exercise of her epistemic virtues. In cases where the subject suspends her judgment upon receiving the putative defeater her original belief might have qualified as knowledge, but crucially, in such cases knowledge is lost due to loss of belief, rather than due to the epistemic force of the defeater. Therefore, knowledge defeat isn’t a genuine phenomenon even though there are no cases where a subject knows what she originally believed after receiving the putative defeater. (shrink)

This book, written by one of philosophy's pre-eminent logicians, argues that many of the basic assumptions common to logic, philosophy of mathematics and metaphysics are in need of change. It is therefore a book of critical importance to logical theory. Jaakko Hintikka proposes a new basic first-order logic and uses it to explore the foundations of mathematics. This new logic enables logicians to express on the first-order level such concepts as equicardinality, infinity, and truth in the same language. The (...) famous impossibility results by Gödel and Tarski that have dominated the field for the last sixty years turn out to be much less significant than has been thought. All of ordinary mathematics can in principle be done on this first-order level, thus dispensing with the existence of sets and other higher-order entities. (shrink)

The paper argues that the naturalised version of semantic inferentialism advanced by Jaroslav Peregrin faces a problem which, following Michael Devitt, I call the incompleteness problem. The main issue has to do with how, according to inferentialism, language is connected to the world. My main claim is that Peregrin’s Protagorean account of correctness is in tension with the idea, made also by Robert Brandom, that language is embodied in the world analogically to how physical objects are embodied in games like (...) football. Against this, I show the two are in fact importantly disanalogical. To solve the incompleteness problem, I argue that naturalised inferentialism should learn the central lessons of semantic externalism, namely that the connection between language and the world must be fundamentally external to the mind, or in Peregrin’s case, to the society of normative attitudes. (shrink)

Edmund Husserl’s eidetic phenomenology seeks a priori knowledge of essences and eidetic laws pertaining to conscious experience and its objects. Husserl believes that such eidetic knowledge has a higher epistemic status than the inherently fallible empirical knowledge, but a closer reading of his work shows that even eidetic claims are subject to error and open to modification. In this article, I develop a self-correcting account of Husserl’s method of eidetic variation, arguing that eidetic variation plays a critical role in both (...) challenging and improving upon the eidetic results in phenomenology. More specifically, I argue that the self-correcting account of eidetic variation 1) is consistent with Husserl’s own formulations of his eidetic methodology and epistemic principles; 2) captures the dual epistemic function of eidetic variation as means for both testing and intuitively validating eidetic claims; and 3) offers methodological support for contemporary attempts to integrate eidetic variation with non-eidetic methods and resources. To substantiate these claims, I first contrast the self-correcting account with the falsificationist interpretations of eidetic variation. Then, I turn to three applications of eidetic variation in order to examine how eidetic phenomenology could draw from real-life deviations, artificial variations, and critical–historical reflection. The goal is to lay the methodological groundwork for a self-correcting and integrative account of eidetic variation and illustrate its usefulness in research practice. (shrink)

Integrating corporate social responsibility (CSR) into a for-profit organization’s business activities is fraught with tensions. This paper reports a case study of a construction company, exploring how different tensions emerged to challenge company-level aspirations for strategic CSR integration. The study identifies three types of persistent CSR tensions and four management practices, discussing how the management practices led the organization to navigate CSR tensions in both active and defensive ways. Furthermore, the study explicates why the case company succeeded in integrating CSR (...) into formal business strategy and shared attitudes but struggled with CSR integration in the domain of day-to-day operations. The paper contributes to the CSR literature by developing a tension-centric perspective on CSR development. It highlights the necessity of tension navigation at both the organizational and the action levels, the key role of active (as opposed to defensive) navigation of CSR tensions, and the importance of alignment between organizational and action levels in navigating tensions for sustaining strategic focus on CSR over time. (shrink)

Attachment theory proposes that the activation of the attachment system enacts emotion regulation (ER) to maintain security or cope with insecurity. However, the effects of ER on attachment states and their bidirectional influences remain poorly understood. In this ecological momentary assessment study, we examined the dynamics between attachment and ER. We hypothesised that attachment states and ER influence each other through time. Specifically, we hypothesised bidirectional short-term cycles between state attachment security and reappraisal, state attachment anxiety and rumination, and state (...) attachment avoidance and suppression. We also tested how trait attachment is related to state attachment and ER. One hundred twenty-two participants (Mage = 26.4) completed the Experiences in Close Relationship–Revised and reported state attachment and ER seven times daily for seven days. The results were only partly consistent with our cycle hypotheses yet revealed a cycle between low state attachment security and rumination that was attenuated by reappraisal. Moreover, rumination and suppression predicted increased insecure states, and reappraisal predicted increased secure and insecure states. Finally, trait attachment showed associations with state attachment and ER. Our study suggests regulatory dynamics between attachment and ER and opens important questions about their functional relationship in maintaining attachment-related behavioural patterns and emotional well-being. (shrink)

ABSTRACTThe distinction between minimal self and narrative self has gained ground in recent discussions of selfhood. In this article, this distinction is reassessed by analysing Zahavi and Gallagher’s account of selfhood and supplementing it with Husserl’s concept of person. I argue that Zahavi and Gallagher offer two compatible and complementary notions of self. Nevertheless, the relationship between minimal self and narrative self requires further clarification. Especially the embeddedness of self, the interplay between passivity and activity, and the problems of uniqueness (...) and persistence are better understood with Husserl’s analysis of person and its central concepts of position-taking, habitualities, and overall style. The embeddedness of self is elucidated by outlining how person is related to its environment, to other people, and to its past. This relational notion of self is both passively constituted and actively shaped: person mediates between minimal self characterized by perspectival ownership... (shrink)

The main question of metasemantics, or foundational semantics, is why an expression token has the meaning (semantic value) that it in fact has. In his reading of Ludwig Wittgenstein’s later work, Saul Kripke presented a skeptical challenge that threatened to make the foundational question unanswerable. My first contention in this paper is that the skeptical challenge indeed poses an insoluble paradox, but only for a certain kind of metasemantic theory, against which the challenge effectively works as a reductio ad absurdum (...) argument. My second contention is that as a result of rejecting the theory which entails a paradoxical outcome, we will see that the foundational question essentially involves a temporal dimension. After arguing that the skeptical challenge gives us a strong reason to adopt a historical view of meaning, I shall further argue against certain authors who claim that meanings not only have histories but futures as well, or that the meaning of a word may change retroactively in time as a consequence of counterfactual change in its future use. The major aim of the paper is thus to bring together the arguably interrelated debates about the skeptical challenge and temporal externalism in philosophy of language. (shrink)

The aim of this paper is to critically examine the concept of semantic objectivity inherent in Robert Brandom`s works, most importantly Making It Explicit. Concerning Brandom`s theoretical aims, I shall argue that there is some discrepancy between his formal and informal characterisations of the criteria by which his account is to be judged as adequate. After expounding on the discrepancy, I shall propose to reconstruct a mostly implicit line of argument in MIE, highlighted by the more recent developments of Brandom`s (...) work, which I think suffices to smooth it over. (shrink)

According to the causal-historical theory of reference, natural kind terms refer in virtue of complicated causal relations the speakers have to their environment. A common objection to the theory is that purely causal relations are insufficient to fix reference in a determinate fashion. The so-called hybrid view holds that what is also needed for successful fixing are true descriptions associated in the mind of the speaker with the referent. The main claim of this paper is that the objection fails: reference (...) fixing of natural kind terms can be purely causal. The main argument draws inspiration from recent theoretical advances made in metaphysics of kinds by Marion Godman, Antonella Mallozzi, and David Papineau. The main claim is that their notion of super-explanatory properties may explain how reference of many kind terms can be fixed purely causally. (shrink)

ABSTRACT Is meaning essentially normative, and what does claiming that amount to? One popular interpretation is that in virtue of their nature meanings are capable of guiding subjects in their applications of concepts, for meaning is constituted by norms. However, the guidance view has been met with criticism to the effect that if semantic norms constitute facts about meaning, then they cannot simultaneously guide subjects in their applications. In response, some normativist authors have proposed that the key sense of ‘normative’ (...) in the claim that meaning is essentially normative is not ‘guidance’ but ‘assessment’. In this paper, I shall argue that switching from guidance to assessment offers no respite from the anti-normativist argument that normativity in the sense of prescriptivity emerges not from meaning as such but from the attitudes of subjects insofar as the normativist is unable to offer a plausible account of what makes assessment appropriate. (shrink)

We claim that the process of theoretical model refinement in economics is best characterised as robustness analysis: the systematic examination of the robustness of modelling results with respect to particular modelling assumptions. We argue that this practise has epistemic value by extending William Wimsatt's account of robustness analysis as triangulation via independent means of determination. For economists robustness analysis is a crucial methodological strategy because their models are often based on idealisations and abstractions, and it is usually difficult to tell (...) which idealisations are truly harmful. (shrink)

This article maintains that a new wave in the development of the productive forces of society triggered by the revolution in information and communication technologies is taking place. Production carried out by single organizations is increasingly replaced by forms of production that are based on close long-term collaboration between specialized firms. This transition reflects the increasing importance of research and development as well as collective learning in business competition. New information and communication technologies enable new forms of distributed and collaborative (...) knowledge creation and learning. The article explores an emerging new form of innovation-oriented inter-firm collaboration called co-configuration and the new kind of dualistic agency it seems to be calling for. In this form of collaboration the traditional boundary between producer and provider as well as the boundaries between product development, sales and maintenance within the provider organization become blurred. The article presents a case of the development of co-configuration work in the provision of optimization software for pulp production. The case shows some of the contradictions involved in this new form of collaboration and the development of a new kind of object-oriented collaborative agency mediated through a real-time information and communication technological platform and uniting two processes of continuous development. (shrink)

Introduction: There is evidence from earlier trials for the efficacy of music therapy in the treatment of depression among working-age people. Starting therapy sessions with relaxation and revisiting therapeutic themes outside therapy have been deemed promising for outcome enhancement. However, previous music therapy trials have not investigated this issue.Objective: To investigate the efficacy of two enhancers, resonance frequency breathing and listening homework, when combined with an established music therapy model.Methods: In a 2 × 2 factorial randomised controlled trial, working-age individuals (...) with depression were allocated into groups based on four conditions derived from either the presence or absence of two enhancers. All received music therapy over 6 weeks. Outcomes were observed at 6 weeks and 6 months. The primary outcome was the Montgomery Åsberg Depression Rating Scale score.Results: There was a significant overall effect of treatment for the primary outcome favouring the breathing group. The effect was larger after adjustment for potential confounders. Treatment effects for secondary outcomes, including anxiety and quality of life, were also significant, favouring the breathing group. The homework enhancer did not reach significant treatment effects.Conclusion: We found that the addition of RFB to a music therapy intervention resulted in enhanced therapeutic outcome for clients with depression. (shrink)

The article argues for the epistemic rationale of triangulation, namely, the use of multiple and independent sources of evidence. It claims that triangulation is to be understood as causal reasoning from data to phenomenon, and it rationalizes its epistemic value in terms of controlling for likely errors and biases of particular data-generating procedures. This perspective is employed to address objections against triangulation concerning the fallibility and scope of the inference, as well as problems of independence, incomparability, and discordance of evidence. (...) The debate on the existence of social preferences is used as an illustrative case. (shrink)

The following analysis shows how developments in epistemic logic can play a nontrivial role in cognitive neuroscience. We argue that the striking correspondence between two modes of identification, as distinguished in the epistemic context, and two cognitive systems distinguished by neuroscientific investigation of the visual system (the "where" and "what" systems) is not coincidental, and that it can play a clarificatory role at the most fundamental levels of neuroscientific theory.

Like Leibniz, C. S. Peirce drew much of the inspiration for his philosophical work from a close study of logical and mathematical reasoning. Now what insights did this study reveal to Peirce? His own answer is formulated as follows: “My first real discovery about mathematical procedure was that there are two kinds of necessary reasoning, which I call the Corollarial and the Theorematic.…” The import of this discovery was lost on philosophers for a long time. The purpose of the present (...) paper is to show what Peirce's insight amounts to, to point out some of its applications, relate it to certain recent developments in the philosophy of logic, and thereby vindicate Peirce's distinction. This undoubtedly will also help to show its present day relevance. (shrink)

Artikkeli käsittelee Saul Kripken Ludwig Wittgensteinin myöhemmistä töistä koostamaa merkityskeptistä haastetta, erityisesti niin kutsuttua äärellisyyden ongelmaa. Pääargumentti on, että skeptisen haasteen pääasiallinen vastaaja, semanttinen dispositionalismi, ei uusimmistakaan yrityksistä huolimatta ole kyennyt ratkaisemaan äärettömyyden ongelmaa. Ratkaistakseen ongelman dispositionalistin tulisi selittää, kuinka on mahdollista, että äärellinen puhuja voisi omata disposition käyttää jotain termiä äärettömässä määrässä tapauksia määrätyllä tavalla. Monet dispositionalistit esittävät, että ratkaisu löytyy niin kutsutuista ceteris paribus -ehdoista, joita vastaan Martin Kusch on argumentoinut. Jatkan Kuschin kritiikkiä ja osoitan ceteris paribus -strategian (...) keskeiset ongelmat, minkä lisäksi vastaan myös kahteen näistä ehdoista riippumattomaan dispositionalistiseen strategiaan. (shrink)

This paper provides an inferentialist account of model-based understanding by combining a counterfactual account of explanation and an inferentialist account of representation with a view of modeling as extended cognition. This account makes it understandable how the manipulation of surrogate systems like models can provide genuinely new empirical understanding about the world. Similarly, the account provides an answer to the question how models, that always incorporate assumptions that are literally untrue of the model target, can still provide factive explanations. Finally, (...) the paper shows how the contrastive counterfactual theory of explanation can provide tools for assessing the explanatory power of models. (shrink)

Like Leibniz, C. S. Peirce drew much of the inspiration for his philosophical work from a close study of logical and mathematical reasoning. Now what insights did this study reveal to Peirce? His own answer is formulated as follows: “My first real discovery about mathematical procedure was that there are two kinds of necessary reasoning, which I call the Corollarial and the Theorematic.…” The import of this discovery was lost on philosophers for a long time. The purpose of the present (...) paper is to show what Peirce's insight amounts to, to point out some of its applications, relate it to certain recent developments in the philosophy of logic, and thereby vindicate Peirce's distinction. This undoubtedly will also help to show its present day relevance. (shrink)

Timothy Williamson famously argued that assertion is constituted either by the knowledge rule or some similar epistemic rule. If true, the proposal has important implications for criticism of assertions. If assertions are analogical to other rule-constituted kinds like games, we can criticize assertions either on external or internal grounds, depending on whether the criticism draws from the necessary norms of assertion or some contingent ones. More recently, authors like Goldberg and MacFarlane have argued against other theories of assertion on the (...) grounds that they cannot explain the possibility of internal criticism for assertions. This paper raises methodological problems with these arguments. The main idea is to show that alternative, non-normative accounts of assertion can also explain the apparent differences in grounds of criticism without assuming that assertion is necessarily governed by some epistemic norm. (shrink)

As the title suggests, this paper is something of a leftover – or perhaps a new branch – to my "Meaning in Time: on temporal externalism and Kripkenstein’s skeptical challenge". In that work I essayed to portray my understanding of the sceptical challenge uncovered by Saul Kripke’s reading of Wittgenstein’s later works in a nutshell as to its nature and resolution. Here, my task is to dig a little deeper into the key phrase of the earlier paper, namely the claim (...) that meanings, facts grounding meaning facts, and ascriptions of meaning have an important historical dimension to them. In particular, I explore the ideas that (i) the problem of finitude is fundamentally a logical and not a metaphysical problem and (ii) Devitt's development of Kripke's causal-historical theory of reference implies a natural explanation for how at least the meanings of some terms can have a historical dimension. (shrink)

Robert Sugden argues that robustness analysis cannot play an epistemic role in grounding model-world relationships because the procedure is only a matter of comparing models with each other. We posit that this argument is based on a view of models as being surrogate systems in too literal a sense. In contrast, the epistemic importance of robustness analysis is easy to explicate if modelling is viewed as extended cognition, as inference from assumptions to conclusions. Robustness analysis is about assessing the reliability (...) of our extended inferences, and when our confidence in these inferences changes, so does our confidence in the results. Furthermore, we argue that Sugden’s inductive account relies tacitly on robustness considerations. (shrink)

While various strategic business issues related to product design have been explored by academicians and practitioners, one issue has largely been ignored: how do financial markets assess and evaluate companies’ product design? The purpose of this article is to examine this issue, especially when it comes to the assessments and evaluations made by the most essential actors of contemporary financial markets: investment analysts and institutional investors. I develop propositions concerning the product design-related evaluative schemes and heuristics used by the financial (...) market actors in evaluating companies as investment opportunities. I illustrate my propositions with examples from, e.g., the mobile phone industry as well as with interview excerpts from interviews with investment analysts and institutional investors. Propositions are provided both for assessments of companies’ individual end products (‘design as the end product’ perspective) and for assessments of companies’ design capabilities (‘design as a capability’ perspective). In essence, the propositions highlight that the evaluative schemes used by financial market actors are partly rational, yet involve biases and are likely to lead to overvaluation and undervaluation of certain kinds of product designs by certain kinds of companies. Thus, even from the perspective of profit-maximization, many of the evaluative schemes of the financial market actors are, at most, quasi-rational. Moreover, the evaluative schemes of the financial market actors may motivate company managers to pursue certain kinds of product design rather than others—and may even lead to self-reinforcing (vicious or virtuous) circles of certain kinds of product designs being advocated. (shrink)