In the early 1970s, we and others in the economics profession became enamored with the notion of externalties—a cost or benefit imposed on or provided to others but not taken into account by the economic agents who generate the effect. We, and others, seemed to see external effects everywhere. There was polluted water and air, noise, urban blight, traffic congestion, and other features of modern life that seemed to call out for some form of corrective action. As the externalities revolution (...) unfolded, economists and other social scientists overlooked the importance of evolved legal and other institutions that formally and informally establish property and liability rules that cause decision makers to face the cost of their actions, including what otherwise could be external costs imposed on unwilling third parties. While markets seemed always to fail, political institutions were seen systematically as without blemish, or so it seemed. It was this two-pronged failure, 1) a failure to consider and state assumptions about background institutional arrangements and 2) a disregard for special interest politics, that became the Achilles Heel of the otherwise elegant externality arguments. Eventually, it was the modern institutionalists, scholars who focused on laws, regulation, and rules of the marketplace, who attempted to close the lid and drive the nails on the externality coffin. In this paper, we reach back to 1920 and trace the rise and decline of the policy importance of externalities theory. Beginning with A. C. Pigou and Alfred Marshall, our story includes some of the great figures in economic history of thought. But while theory was being built, institutions were overlooked. Pigou continues to be a dominant player in the story until the 1960s and 1970s when externalities theory was challenged by James M. Buchanan, Ronald Coase and other scholars. It is here in the twilight years of the externalities revolution that the prospects of government failure are raised as being more daunting than the likelihood of market failure. Finally, in the late 1970s and beyond, the externalities revolution is replaced by a property rights revolution. (shrink)

Michael A. Petersa and Fazal Rizvib aBeijing Normal University, Beijing, PR China; bMelbourne University, Melbourne, Australia Our minds are still racing back and forth, longing for a return to ‘no...

Extending prior research on the characteristics potentially associated with adolescents’ tendencies to be a moral rebel, the present study found that adolescents themselves, their peers, and their teachers agreed on adolescents’ tendencies to possess a moral identity, possess moral courage characteristics, and be a moral rebel. Although moral identity did not consistently predict the tendency to be a moral rebel, all indices of the adolescents’ moral courage characteristics positively predicted the tendency to be a moral rebel.

I. Introduction Two kinds of remedies have traditionally been employed for breach of contract: legal relief and equitable relief. Legal relief normally takes the form of money damages. Equitable relief normally consists either of specific performance or an injunction – that is, the party in breach may be ordered to perform an act or to refrain from performing an act. In this article I will use a “consent theory of contract” to assess the choice between money damages and specific performance. (...) According to such a theory, contractual obligation is dependent on more fundamental entitlements of the parties and arises as a result of the parties' consent to transfer alienable rights. My thesis will be that the normal rule favoring money damages should be replaced with one that presumptively favors specific performance unless the parties have consented to money damages instead. The principal obstacle to such an approach is the reluctance of courts to specifically enforce contracts for personal services. The philosophical distinction between alienable and inalienable rights bolsters this historical reticence, since a right to personal services may be seen as inalienable. I will then explain why, if the subject matter of a contract for personal services is properly confined to an alienable right to money damages for failure to perform, specific enforcement of such contracts is no longer problematic. Finally, I shall consider whether the subject matter of contracts for corporate services is properly confined to money damages like contracts for personal services, or whether performance of corporate services can be made the subject of a valid rights transfer and judicially compelled in the same manner as contracts for external resources. (shrink)

Michael A. PetersBeijing Normal University, Beijing, PR China;There is an ecology of bad ideas, just as there is an ecology of weeds– Gregory Bateson (1972, p. 492)While there are classical anteced...

Using psychosocial acceleration theory, this multimethod, multi-reporter study examines how early adversity adaptively shapes the development of a self-regulation construct: effortful control. Investigation of links between early life harshness and unpredictability and the development of effortful control could facilitate a nuanced understanding of early environmental effects on cognitive and social development. Using the Building Strong Families national longitudinal data set, aspects of early environmental harshness and early environmental unpredictability were tested as unique predictors of effortful control at age 3 using (...) multiple regression. Early harshness variables were financial harshness, mothers’ and fathers’ observed parenting, mothers’ and fathers’ reported use of harsh discipline, and harsh neighborhood conditions. Early unpredictability was measured by number of paternal transitions. Cues of harshness, specifically observed unresponsive parenting, observed harsh parenting, and neighborhood harshness, did significantly negatively predict effortful control. Paternal transitions also significantly predicted effortful control, but in the opposite (i.e., positive) direction. The results corroborate previous research linking quality of parenting to the development of children’s effortful control and place it within an evolutionary-developmental theoretical framework. Further, the results suggest that neighborhood harshness may also direct developmental trajectories of effortful control in young children, though the mechanisms through which this occurs are still unclear. This is the first study to explicitly investigate effortful control development in early childhood within the harshness and unpredictability framework. (shrink)

Should we believe our controversial philosophical views? Recently, several authors have argued from broadly conciliationist premises that we should not. If they are right, we philosophers face a dilemma: If we believe our views, we are irrational. If we do not, we are not sincere in holding them. This paper offers a way out, proposing an attitude we can rationally take toward our views that can support sincerity of the appropriate sort. We should arrive at our views via a certain (...) sort of ‘insulated’ reasoning – that is, reasoning that involves setting aside certain higher-order worries, such as those provided by disagreement – when we investigate philosophical questions. (shrink)

Suppose you are on a commercial airplane that is flying at 35,000 feet. Next to you sits a man who appears to be sleeping. In fact, this man has been drugged and put upon the plane without his knowledge or consent. He has never flown on a plane before and, indeed, has no idea what an airplane is. Suddenly the man awakes and looks around him. Terrified by the alien environment in which he finds himself, he searches for a door (...) or window from which to make an escape. As luck would have it, he is seated right next to a window exit and he begins to pull the handle that will open the window. You are aware that opening the window exit at this altitude will cause the cabin to quickly depressurize and that this man, you, and probably several other passengers will be sucked out the window to your deaths. You desperately want to stop him from opening the window. Now assume that for some reason it is impossible to prevent him physically from performing the deadly act. Your only option is to rationally persuade him to leave the window exit alone. You cry out to him and, with both hands on the handles, he turns to face you and waits to hear what you have to say. What sort of argument would you make? (shrink)

The present pair of studies investigated the assessment, correlates, and evaluation of ?moral rebels? who follow their own moral convictions despite social pressure to comply. In Study 1, self, peer, and teacher ratings of adolescents' tendencies to be a moral rebel were positively intercorrelated. In Study 2, young adults' tendencies to be a moral rebel were associated with relatively high self-esteem scores and relatively low willingness to engage in minor moral violations and need to belong scores. Both adolescents and young (...) adults reported relatively favorable attitudes toward a morally rebellious peer, especially when they themselves had heightened ratings on this characteristic. (shrink)

Dimensions of the ethical work climate, as conceptualized by Victor and Cullen (1988), are potentially important influences on individual ethical decision-making in the organizational context. The present study examined the direct and indirect effects of individuals' perceptions of work climate on their ethical judgments and behavioral intentions regarding an ethical dilemma. A national sample of marketers was surveyed in a scenario-based research study. The results indicated that, although perceived climate dimensions did not have a direct effect on behavioral intentions, there (...) were significant moderating effects. Climates perceived as emphasizing social responsibility and rules/codes moderated the individual ethical judgment-behavioral intentions relationship such that individuals were less likely to say that they would engage in a questionable selling practice even when they themselves did not believe the practice to be unethical. Respondents were somewhat more likely to form intentions consistent with their judgment that the questionable practice was morally acceptable when the ethical climate was characterized by an emphasis on team/friendship. (shrink)

In many ways, Ron Barnett’s academic oeuvre is unique. Without a doubt, he is one of the (if not the) most central founding academics of the research field ‘the philosophy of higher education’, whi...

One of the more interesting counter-intuitive findings in organizational research is that success breeds failure. This counter-intuitive has been described in termsof core rigidities, core incompetencies, and even the Icarus Paradox. The literature on these topics has concluded that success yields overconfidence and myopia in firms and their managers, and this eventually causes failure. We augment this literature by suggesting that success breeds not only internal pathologies that cause firms to misuse their established resources over time, but also external pathologies (...) that cause firms to lose access to new resources. In particular, success influences stakeholders’ perceptions of firms, causing firms to lose the benefits of underdog status and gain the problems of overlord status. We term this notion that success warps images of the successful, leading to their decline over time, the Helios Paradox, and suggest that dominant firms must counter natural tendencies to succumb to both the Icarus and Helios Paradoxes if they are to remain successful over time. (shrink)

Decision theory has had a long-standing history in the behavioural and social sciences as a tool for constructing good approximations of human behaviour. Yet as artificially intelligent systems (AIs) grow in intellectual capacity and eventually outpace humans, decision theory becomes evermore important as a model of AI behaviour. What sort of decision procedure might an AI employ? In this work, I propose that policy-based causal decision theory (PCDT), which places a primacy on the decision-relevance of predictors and simulations of agent (...) behaviour, may be such a procedure. I compare this account to the recently-developed functional decision theory (FDT), which is motivated by similar concerns. I also address potentially counterintuitive features of PCDT, such as its refusal to condition on observations made at certain times. (shrink)

John Milbank argues for a new Christendom on the grounds that the "narrated practice" of Christianity provides our only hope for peaceful harmony amid differences. He defends this claim on the basis of a "pragmatic linguistic idealism," in which our various narrative traditions compete to appeal to our taste; he decisively rejects the possibility of any other criteria of evaluation or of a mutually critical dialogue. This oppositional stance toward other perspectives reveals the instability of Milbank's position, however, in that (...) it denies the possibility of harmony among differences upon which his defense of Christianity depends. (shrink)

On two standard views of vagueness, vagueness as to whether Harry is bald entails that nobody knows whether Harry is bald—either because vagueness is a type of missing truth, and so there is nothing to know, or because vagueness is a type of ignorance, and so even though there is a truth of the matter, nobody can know what that truth is. Vagueness as to whether Harry is bald does entail that nobody clearly knows that Harry is bald and that (...) nobody clearly knows that Harry is not bald. But it does not entail that nobody knows that Harry is bald or that nobody knows that Harry is not bald. Hence, the two standard views of vagueness are mistaken. (shrink)

Extending previous research on the characteristics associated with adolescents’ general tendency to be a moral rebel, the present study examined the roles of moral identity and moral courage characteristics on 3 expressions of the tendency to stand up for one’s beliefs and values despite social pressure not to do so. Results revealed that general and situation-specific moral courage characteristics are important motivators of individuals’ caring, just, and brave expressions of the tendency to be a moral rebel, especially when they possess (...) a relatively strong moral identity. (shrink)

Although the condition known as synaesthesia is currently undergoing a scientific resurgence, to date the literature has largely focused on the heterogeneous nature of synaesthesia across individuals. In order to provide a better understanding of synaesthesia, however, general characteristics need to be investigated. Synaesthetic experiences are often described as occurring ‘internally’ or in the ‘mind’s eye’, which is remarkably similar to how we would describe our experience of visual mental imagery. We assessed the role of visual imagery in synaesthesia by (...) sampling a large group of synaesthetes and found that they report experiencing more vivid mental images than controls. These findings have important implications for our general understanding of synaesthesia and, in particular, emphasize the need to control for visual imagery in behavioural and neuroimaging paradigms. (shrink)

New Approaches to Monetary Economics brings together presentations of innovative research in the field of monetary economics. Much of this research develops and applies approaches to modelling financial intermediation, aggregate fluctuations, monetary aggregation and transactions-motivated monetary equilibrium. The contents of this volume comprise the proceedings of the second in a conference series entitled International Symposia in Economic Theory and Econometrics. This conference was held in 1985 at the IC2 Institute at the University of Texas at Austin. The symposia in this (...) series are sponsored by the IC2 Institute and the RGK Foundation. New Approaches to Monetary Economics, edited by Professors William A. Barnett and Kenneth J. Singleton, consists of five parts. Part I examines transactions-motivated monetary holding in general equilibrium; Part II, financial intermediation; Part III, monetary aggregation theory, Part IV, issues in aggregate fluctuation; and Part V, theoretical issues in the foundations of monetary economics and macroeconomics. (shrink)

Currently more than half of the world’s population lives in cities. This is expected to rise to more than two-thirds by mid-century. Thus, our economic, social, and environmental challenges mostly and increasingly play out in urban settings. How can cities be strengthened to address the growing challenges they face? This special issue addresses the ethical implications of revitalizing urban environments, and the roles that diversity and inclusion, as well as social innovation, play in this process. The five papers herein show (...) that it is not easy to strengthen our cities, but with the right policies, political and corporate leadership, and depth of community grounding in ethical principles, it is possible. In this editorial essay, we summarize the contributions of each of these papers to this important conversation, clarify the questions that remain, and offer directions for future research. (shrink)

BackgroundAustralian health and medical research funders support substantial research efforts, and incentives within grant funding schemes influence researcher behaviour. We aimed to determine to what extent Australian health and medical funders incentivise responsible research practices.MethodsWe conducted an audit of instructions from research grant and fellowship schemes. Eight national research grants and fellowships were purposively sampled to select schemes that awarded the largest amount of funds. The funding scheme instructions were assessed against 9 criteria to determine to what extent they incentivised (...) these responsible research and reporting practices: publicly register study protocols before starting data collection, register analysis protocols before starting data analysis, make study data openly available, make analysis code openly available, make research materials openly available, discourage use of publication metrics, conduct quality research, collaborate with a statistician, and adhere to other responsible research practices. Each criterion was answered using one of the following responses: “Instructed”, “Encouraged”, or “No mention”.ResultsAcross the 8 schemes from 5 funders, applicants were instructed or encouraged to address a median of 4 of the 9 criteria. Three criteria received no mention in any scheme. Importantly, most incentives did not seem strong as applicants were only instructed to register study protocols, discourage use of publication metrics and conduct quality research. Other criteria were encouraged but were not required.ConclusionsFunders could strengthen the incentives for responsible research practices by requiring grant and fellowship applicants to implement these practices in their proposals. Administering institutions could be required to implement these practices to be eligible for funding. Strongly rewarding researchers for implementing robust research practices could lead to sustained improvements in the quality of health and medical research. (shrink)

Religion and spirituality are important aspects of the lives of most psychotherapy clients. Unfortunately, many psychotherapists lack the training to effectively and ethically address these issues with their clients. At times, religious or spiritual concerns may be relevant to the reasons clients seek treatment, either as areas of conflict or distress for clients or as sources of strength and support that the psychotherapist may access to enhance the benefit of psychotherapy. This article reviews persistent ethical issues and dilemmas relevant to (...) providing psychotherapy to clients for whom issues of religion and spirituality are clinically relevant. Ethical considerations include assessment, advertising and public statements, informed consent, competence, boundary issues and multiple relationships, cooperation with other professionals, and how to effectively integrate religious and spiritual interventions into ongoing psychotherapy. A decision-making process is presented to guide psychotherapists in their clinical work with clients for whom religious and spiritual issues are salient or clearly linked to their presenting problems. (shrink)

BackgroundThe Health Research Council of New Zealand is the first major government funding agency to use a lottery to allocate research funding for their Explorer Grant scheme. This is a somewhat controversial approach because, despite the documented problems of peer review, many researchers believe that funding should be allocated solely using peer review, and peer review is used almost ubiquitously by funding agencies around the world. Given the rarity of alternative funding schemes, there is interest in hearing from the first (...) cohort of researchers to ever experience a lottery. Additionally, the Health Research Council of New Zealand wanted to hear from applicants about the acceptability of the randomisation process and anonymity of applicants.MethodsThis paper presents the results of a survey of Health Research Council applicants from 2013 to 2019. The survey asked about the acceptability of using a lottery and if the lottery meant researchers took a different approach to their application.ResultsThe overall response rate was 39%, with 30% from applicants in the years 2013 to 2018, and 68% for those in the year 2019 who were not aware of the funding result. There was agreement that randomisation is an acceptable method for allocating Explorer Grant funds with 63% in favour and 25% against. There was less support for allocating funds randomly for other grant types with only 40% in favour and 37% against. Support for a lottery was higher amongst those that had won funding. Multiple respondents stated that they supported a lottery when ineligible applications had been excluded and outstanding applications funded, so that the remaining applications were truly equal. Most applicants reported that the lottery did not change the time they spent preparing their application.ConclusionsThe Health Research Council’s experience through the Explorer Grant scheme supports further uptake of a modified lottery. (shrink)

Objective: To assess the adequacy of the process of informed consent for surgical patients at the University Hospital of the West Indies. Method: The study is a prospective, cross-sectional, descriptive study. 210 patients at the University Hospital of the West Indies were interviewed using a standardised investigator-administered questionnaire, developed by the authors, after obtaining witnessed, informed consent for participation in the study. Data were analysed using SPSS V.12 for Windows. Results: Of the patients, 39.4% were male. Of the surgical procedures, (...) 68.6% were scheduled, 7.6% urgent and 23.8% emergency, 35.2% were minor and 64.8% major. Information imparted/received was acceptable in 40% of cases, good in 24% and inadequate (unacceptable) in 36% of cases. Almost all (97.6%) patients stated that they understood why an operation was planned and 93.3% thought that they had given informed consent. Most (95.2%) thought that they had free choice and made up their own mind. A quarter (25.2%) of all patients were told that it was mandatory for them to sign the form. There was a discussion of possible side effects and complications in 56.7% of patients. Conclusions: This study clearly indicates that surgical patients at the University Hospital of the West Indies feel that they have given informed consent. However, it also suggests that more information should be given to patients for consent to be truly informed. (shrink)