The multiverse theodicy proposes to reconcile the existence of God and evil by supposing that God created all and only the creation-worthy universes and that some universes like ours are, despite their evils, creation-worthy. Drawing on work in population ethics, this paper develops a novel challenge to the multiverse theodicy. Roughly, the challenge contends that the axiological underpinnings of the multiverse theodicy harbor a ‘mere addition paradox’: the assumption that creating creation-worthy universes would always make the world better turns out (...) to have morally repugnant consequences akin to those of the assumption that adding worthwhile lives to a population would always make the overall welfare of the population better. Further, the challenge leverages this difficulty into an argument against God’s having created all and only the creation-worthy universes, and hence against the multiverse theodicy. Responses to this challenge are considered but found wanting, largely because of commitments of the multiverse theodicy that have no analogs in population ethics. (shrink)

As ever more advanced digital systems are created, it becomes increasingly likely that some of these systems will be digital minds, i.e. digital subjects of experience. With digital minds comes the risk of digital suffering. The problem of digital suffering is that of mitigating this risk. We argue that the problem of digital suffering is a high stakes moral problem and that formidable epistemic obstacles stand in the way of solving it. We then propose a strategy for solving it: Access (...) Monitor Prevent (AMP). AMP uses a ‘dancing qualia’ argument to link the functional states of certain digital systems to their experiences—this yields epistemic access to digital minds. With that access, we can prevent digital suffering by only creating advanced digital systems that we have such access to, monitoring their functional profiles, and preventing them from entering states with functional markers of suffering. After introducing and motivating AMP, we confront limitations it faces and identify some options for overcoming them. We argue that AMP fits especially well with—and so provides a moral reason to prioritize—one approach to creating such systems: whole brain emulation. We also contend that taking other paths to digital minds would be morally risky. (shrink)

This paper defends the view that discovering that our universe is fine-tuned should make us more confident that other universes exist. My defense exploits a distinction between ideal and non-ideal evidential support. I use that distinction in concert with a simple model to disarm the most influential objection—the this-universe objection—to the view that fine-tuning supports the existence of other universes. However, the simple model fails to capture some important features of our epistemic situation with respect to fine-tuning. To capture these (...) features, I introduce a more sophisticated model. I then use the more sophisticated model to show that, even once those complicating factors are taken into account, fine-tuning should boost our confidence in the existence of other universes. (shrink)

Dualism holds that some mental events are fundamental and non-physical. I develop a prima facie plausible causal argument for dualism. The argument has several significant implications. First, it constitutes a new way of arguing for dualism. Second, it provides dualists with a parity response to causal arguments for physicalism. Third, it transforms the dialectical role of epiphenomenalism. Fourth, it refutes the view that causal considerations prima facie support physicalism but not dualism. After developing the causal argument for dualism and drawing (...) out these implications, I subject the argument to a battery of objections. Some prompt revisions to the argument. Others reveal limitations in scope. It falls out of the discussion that the causal argument for dualism is best used against physicalism as a keystone in a divide and conquer strategy. (shrink)

Though not myself a physicalist, I develop a new argument against antiphysicalist positions that are motivated by zombie arguments. I first identify four general features of phenomenal states that are candidates for non-physical types; these are used to generate different types of zombie. I distinguish two antiphysicalist positions: strict dualism, which posits exactly one general non-physical type, and pluralism, which posits more than one such type. It turns out that zombie arguments threaten strict dualism and some pluralist positions as much (...) as they threaten physicalism—indeed, more so, since such positions need zombies to motivate them as alternatives to physicalism—and that the only pluralist position that escapes zombie arguments has a radically inflated ontology. (shrink)

Our universe features a harmonious match between laws and states: applying its laws to its states generates other states. This is a striking fact. Matters might have been otherwise. The universe might have been stillborn in a state unengaged by its laws. The problem of nomological harmony is that of explaining the noted striking fact. After introducing and developing this problem, we canvass candidate solutions and identify some of their virtues and vices. Candidate solutions invoke the likes of a designer, (...) axiarchic meta-laws, multiverses, essential causal powers, and Humean laws. (shrink)

Experiences tend to be followed by states for which they provide normative reasons. Such harmonious correlations cry out for explanation. Theories that answer or diminish these cries thereby achieve an advantage over theories that do neither. I argue that the main lines of response to these cries that are available to biological theorists—theorists who hold (roughly) that conscious subjects are generally biological entities—are problematic. And I argue that panpsychism—which holds (roughly) that conscious subjects are ubiquitous in nature—provides an attractive response (...) to these explanatory cries. Taken together, these considerations underwrite a kind of ‘psychophysical fine-tuning’ argument in support of panpsychism, one that is reminiscent of cosmological fine-tuning arguments in favor of multiverse hypotheses. (shrink)

Following Chalmers, I take the most promising response to the meta-problem to be a realizationist one on which (roughly) consciousness plays a role in realizing the processes that explain why we think that there is a hard problem of consciousness. I favour an interactionist dualist version of realizationism on which experiences are non-physical states that non-redundantly cause problem judgments. This view is subject to the challenges of specifying laws that would enable experiences to cause problem judgments and of explaining why (...) it's not a lucky coincidence that experiences' causal and rational powers converge on problem judgments. I propose a strategy for solving the meta-problem and meeting these challenges. According to it, a fundamental teleological law operates on normative features of experiences in ways that bias experiences towards causing effects that they rationalize, including problem judgments. I conclude by applying the strategy to other luck-avoidance challenges. (shrink)

Some physical theories predict that almost all brains in the universe are Boltzmann brains, i.e. short-lived disembodied brains that are accidentally assembled as a result of thermodynamic or quantum fluctuations. Physicists and philosophers of physics widely regard this proliferation as unacceptable, and so take its prediction as a basis for rejecting these theories. But the putatively unacceptable consequences of this prediction follow only given certain philosophical assumptions. This paper develops a strategy for shielding physical theorizing from the threat of Boltzmann (...) brains. The strategy appeals to a form of phenomenal externalism about the physical basis of consciousness. Given that form of phenomenal externalism, the proliferation of Boltzmann brains turns out to be benign. While the strategy faces a psychophysical fine-tuning problem, it both alleviates cosmological fine-tuning concerns that attend physics-based solutions to Boltzmann brain problems and pays explanatory dividends in connection with time’s arrow. (shrink)

The pairing argument aims to demonstrate the impossibility of non-spatial objects (including minds) standing in causal relations. Its chief premises are (roughly) that causation requires pairing relations between causes and effects and that pairing relations require spatial relations. Critics have argued that the first claim suffers from counterexamples involving indeterministic causation. After briefly rehearsing the pairing argument and the objection from indeterministic causation, I offer two ways of revising the pairing argument to meet the objection from indeterministic causation.

Interactionists hold that non-spatial objects causally interact with physical objects. Interactionists have traditionally grappled with the puzzle of how such interaction is possible. More recently, Jaegwon Kim has presented interactionists with a more daunting threat: the pairing argument, which purports to refute interactionism by showing that non-spatial objects cannot stand in causal relations. After reviewing that argument, I develop a challenge to it on behalf of the interactionist. The challenge poses a dilemma: roughly, either haecceities exist or they do not. (...) I argue that the pairing argument fails in either case. While the challenge does not explain exactly how the pairing argument goes wrong, it shows that the argument fails. The challenge also explains the difficulty in pinpointing the pairing argument’s failure: exactly how the pairing argument fails depends on difficult issues concerning the nature of objects. (shrink)

This article argues that we should be prudentially and morally biased toward earlier events: other things equal, we should prefer for good events to occur earlier and disprefer for bad events to occur earlier. The argument contends that we should accord at least some credence—if only a small one—to a theoretical package featuring the growing block theory of time and that that package generates a presumptive bias toward earlier events. Rival theoretical packages are considered. Under reasonable allocations of credence to (...) them, the presumptive bias escapes defeat. The argument has several corollaries: other things equal, we should be biased toward the past over the future, the further past over the nearer past, and the nearer future over the further future. (shrink)

Interactionists hold that minds are non-physical objects that interact with brains. The neural discernment problem for interactionism is that of explaining how non-physical minds produce behavior and cognition by exercising different causal powers over physiologically similar neurons. This paper sharpens the neural discernment problem and proposes two interactionist models of mind-brain interaction that solve it. One model avoids overdetermination while the other respects the causal closure of the physical domain.

The chief motivation for epiphenomenalist dualism is its promise to solve dualism’s causal exclusion problem without inducing causal overdetermination or violations of the causal closure of the physical. This paper argues that epiphenomenalist dualism is itself susceptible to an exclusion problem. The problem exploits symmetries of determination and influence generated by a wide class of physical theories. Further, I argue that there is an interference effect between solving epiphenomenalist dualism's exclusion problem and using epiphenomenalist dualism as a solution to the (...) causal exclusion problem. What emerges is an overlooked, empirically-motivated challenge to epiphenomenalist dualism. (shrink)

I explore two views about the relationship between spatial experience and spatial reality: spatial functionalism and spatial presentationalism. Roughly, spatial functionalism claims that the instantiated spatial properties are those playing a certain causal role in producing spatial experience while spatial presentationalism claims that the instantiated spatial properties include those presented in spatial experience. I argue that each view, in its own way, leads to an ontologically inflationary form of primitivism: whereas spatial functionalism leads to primitivism about phenomenal representation, spatial presentationalism (...) leads to primitivism about spatial properties. I conclude by discussing how to adjudicate between spatial functionalism and spatial presentationalism. (shrink)

We motivate five constraints on theorizing about sensory experience. We then propose a novel form of naturalistic intentionalism that succeeds where other theories fail by satisfying all of these constraints. On the proposed theory, which we call structure matching tracking intentionalism, brains states track determinables. Internal structural features of those states select determinates of those determinables for presentation in experience. We argue that this theory is distinctively well-positioned to both explain internal-phenomenal structural correlations and accord external features a role in (...) fixing phenomenology. In addition, we use the theory to shed light on how one comes to experience “missing shades”. (shrink)

Dualism holds that experiences are non-physical states that exist alongside physical states. Dualism leads to the postulation of psychophysical laws that generate experiences by operating on certain sorts of physical states. What sorts of physical states? To the limited extent that dualists have addressed this question, they have tended to favor a brain-based approach that locates the physical basis of experience in the head. In contrast, this paper develops an argument for a form of dualism on which experience has a (...) physical basis that reaches out into the world. Specifically, the argument uses a puzzle about spatial experience to support a theory I call _tracking dualism_. On tracking dualism, a psychophysical law generates experiences by operating on complex physical states that involve both brain states and tracking relations that they bear to features of the environment. To develop the argument, I discuss tracking dualism alongside its more familiar physicalist counterpart, the tracking intentionalist theory associated with Dretske, Lycan, and Tye. I conclude by outlining a tracking dualist research agenda. (shrink)

Reductive physicalists typically accept the causal argument for their view. On this score, Tiehen parts ways with his fellow reductive physicalists. Heretically, he argues that reductive physicalists should reject the causal argument. After presenting Tiehen's challenge, I defend the orthodoxy. Although not myself a reductive physicalist, I show how reductive physicalists can resist this challenge to the causal argument. I conclude with a positive suggestion about how reductive physicalists should use the causal argument.

Panpsychism claims that the vast majority of conscious subjects in our world are inanimate and physical. Ensemble explanations account for striking phenomena by placing them within an ensemble of outcomes, most of which are not striking. This paper develops an explanatory problem for panpsychism: panpsychism renders two appealing ensemble explanations unsatisfactory. Specifically, we argue that panpsychism renders unsatisfactory the multiverse explanation of why a universe supports life and the many-planets explanation of why a planet supports life.

Morality is intrapersonally permissive: cases abound in which an agent has more than one morally permitted option. In contrast, there is a dearth of cases in which an agent has more than one epistemically permitted response to her evidence. Given the structural parallels between morality and epistemology, why do sources of moral permissiveness fail to have parallel permissive effects in the epistemic domain? This asymmetry between morality and epistemology cries out for explanation. The paper's task is to offer an answer (...) to that call. We explain the asymmetry by tracing moral permissiveness to two factors to which rationality is morally but not epistemically sensitive. (shrink)

Why is pain bad? The most straightforward theory of pain's badness,dolorism, appeals to the phenomenal quality of displeasure. In spite of its explanatory appeal, the view is too straightforward to capture two central puzzles, namely pain that is enjoyed and pain that is not painful. These cases can be captured byconditionalism, which makes the badness of displeasure conditional on an agent's attitude. But conditionalism fails where dolorism succeeds with explanatory appeal. A new approach is proposed,reverse conditionalism, which maintains the explanatory (...) appeal of dolorism, but gives attitudes a value-defeating role. It is argued that this view does best in fulfilling the desiderata and capturing the cases. (shrink)

“Benefit to the world” and “Heaven’s intent” are not, as is often assumed, separate criteria for action in Mozi’s 墨子 ethics; they are the same in extension but not intension. When Mozi speaks in terms of “Heaven’s intent,” it is to highlight the criterion’s retrospective orientation and its scope; taking a cue from Heaven’s reactions to past deeds, agents specify the scope of “the world” by reference to the past performance of persons regarding benefit to the world. This diverges from (...) a principle that is often attributed to Mozi, of considering the benefit of all equally without regard for past performance. (shrink)

Epiphenomenalism is the thesis that though physical events may cause mental events, those mental events never cause physical events. In this paper, I will be concerned with the claim that our thoughts, intentions, and awareness play no causal role in producing actions. Though epiphenomenalism has been defended with a priori philosophical arguments, the majority of the support that it has gained in recent years has come from advances in neuroscience. At the center of these experiments is the Libet paradigm that (...) aims to show that our actions are initiated by unconscious brain processes prior to our awareness of the intention or decision to perform the corresponding actions. It has been widely suggested that these studies support the view that consciousness is epiphenomenal, and if Libet-style experiments support this conclusion, the results have direct implications for free will. I argue by way of a dilemma that any study that relies on reports of subjects’ awareness in its methodology cannot be used to support epiphenomenalism because the experimenters would have to rule out the possibility that consciousness plays a causal role in order to do so. (shrink)

S'appuyant sur l'analyse philosophique, la recherche historique, l'évolution des pratiques médicales, cet ouvrage met en lumière les articulations entre les idées scientifiques du médecin et idéologue Pierre Jean Georges Cabanis (1757-1808), son analyse des rapports sociaux et sa philosophie de la connaissance.

A brief essay on taste -- The dreadful legacy of modernism -- Is Shakespeare any good? -- Mad theories -- Defining literature: the bete noir of academia -- Evaluation -- Popular literature -- Is literature any good for us?.

We use a quantum electrodynamics model, to study the evolution of maximally entangled bipartite states, as well as a maximally entangled tripartite states as a multipartite system. Furthermore, we study the entanglement behaviour of these output states in cavity QED as function of interaction time and the coupling strength. The present study discusses the separability and the entanglement limit of such states after interaction with a cavity QED.

The incidence and moral implications of cheating depend on how it is defined and measured. Research that defines and operationalizes cheating as an inventory of acts, that is, “cheating in any form,” has often fueled concern that cheating is reaching “epidemic proportions.” Such inventory measures appear, however, to conflate moral and administrative conceptions of the problem. Inasmuch as the immorality of behavior is a function of moral judgment, academic misconduct is immoral only when it is intentional, and the greatest moral (...) weight should be ascribed to violations that students judge to be the most “serious.”. (shrink)

The philosophy of literature, as developed by analytical philosophers, places the values of literature, implicitly or explicitly, at the centre of its core debates. Is literature an honorific (value-laden) concept or a descriptive one? What is literary interpretation if not primarily the uncovering of deeper significance and interest in works of literature? What about the pursuit of truth and knowledge? Is it not one of the most valued aspirations of literature? And can readers of novels not sharpen their moral sensibility, (...) their empathy, their understanding of human weakness, desires and follies, by engaging with the lives of fictional characters? Can the great works of fiction or poetry or drama not offer enduring psychological rewards, not just in the pleasures of literary artifice but in having the imagination stretched through immersion in worlds and possibilities well beyond the banalities of everyday life? These are some of the debates, even if no final resolution has emerged. Are there such distinctive literary values as implied in these debates? Is it possible to generalize across literary genres or are there only, at best, values of poetry, the novel, the short story, drama? And how are individual works to be evaluated? Are there objective values or only values relative to individual readers or "communities"? Is there a canon of great works, and if so, how is it constructed? How do moral values relate to literary values? Can great works be immoral? These are live issues for the philosopher of literature. (shrink)

In this paper we examine some of the economic and ethical consequences of different credit market regulations, including usury laws, complete prohibition of interest and providing ease to the borrower upon default. The references to these credit market regulations can be found in many religious and moral philosophy texts. We first examine the effectiveness of these regulations in deterring exploitative lending by developing a model that shows lending can be regulated through either act-based or harm-based regulations. We show that act-based (...) regulations which comprise usury laws and complete prohibition of interest deter lenders more than harm-based regulations which constitute bankruptcy laws. We then analyze that while the regulations may deter certain forms of lending behavior, they may also create certain externalities by contributing towards inequity and societal risk. We propose that a regulator’s choice of implementing credit market regulations maybe dependent on her ethical commitment towards growth and reduction of inequity. We suggest the usury laws are more ethical than bankruptcy laws; however, discouraging the use of debt contracts through prohibition of interest and encouraging the use of risk sharing contracts maybe the most ethical way to regulate the credit markets. (shrink)

This book is a total joy to read. Thi Nguyen’s energy radiates from every page – the prose is truly delightful, with all sorts of poetic turns of phrase enliven.

This Is A New Release Of The Original 1901 Edition.

En este trabajo se sostiene que la teoría del derecho iberoamericana ha malinterpretado la teoría del razonamiento jurídico de Jeremy Waldron, presentándola como una teoría formalista de la adjudicación, y a Waldron como un positivista excluyente. Esto se debe a una lectura sesgada de su teoría del derecho, que se explica, a su vez, por la imagen que el constitucionalismo ha construido en torno a Waldron, como un opositor de Dworkin. Este trabajo muestra que Waldron suscribe a una teoría “dworkiniana” (...) del razonamiento jurídico, la que opera como eslabón entre su teoría de la democracia y su teoría más reciente de la dignidad humana. Ambas cuestiones han sido virtualmente ignoradas por el medio académico hispanoparlante. (shrink)

Offers a revised understanding of human subjectivity that avoids the extremes of both traditional humanism and cultural relativism.“Acknowledging the importance of the ‘middle voice’ of rhetoric is a worthwhile endeavor. For this, Vivian’s goals are to be applauded.” — Rhetoric and Public Affairs.

In the Nicomachean Ethics, one of Aristotle’s most frequent characterizations of the virtuous agent is that she acts for the sake of the fine (to kalon). In IX.8, this pursuit of the fine receives a more specific description; virtuous agents maximally assign the fine to themselves. In this paper, I answer the question of how we are to understand the fine as individually and maximally acquirable. I analyze Nicomachean Ethics IX.7, where Aristotle highlights virtuous activity (energeia) as central to the (...) fine, and argue that when virtuous agents pursue the fine, what they are pursuing is virtuous activity. I then address various problems, like how virtuous people can maximize virtuous activity yet sacrifice their lives, which would seem to amount to sacrificing future opportunities to virtuous activity and therefore not maximizing it. I also eliminate alternative interpretations that do not take virtuous activity as necessary to the fine, for example the common good interpretation, whereby virtuous agents pursuing the fine amounts to their pursuing the common good. (shrink)

Fraser highlights an unattractive feature of Mohist ethics: the Mohists, while criticizing their Confucian contemporaries, restrict one’s pursuits to the most basic sorts of goods. Fraser suggests that the Mohists assume the perpetuity of scarce resources, which leads to a commitment to austerity, which in turn leads them to deny a plausible third way between austerity and excess. In their defence, I argue that the Mohists do not assume perpetuity of scarce resources but rather the hedonic treadmill. And instead of (...) begging the question by assuming austerity and then denying a moderate alternative to excess, the Mohists take the hedonic treadmill to preclude a principled stopgap between austerity and excess, leaving austerity as the only acceptable option. Finally, these dynamics illuminate a feature that should make us wary of parallels to Millian utilitarianism: the maximization principle of the latter is absent from Mohism, and this goes hand-in-hand with austerity. (shrink)

THIS PAPER ARGUES THAT GLOBAL SUPERVENIENCE IS NOT\nEQUIVALENT TO KIM'S STRONG SUPERVENIENCE (AS HE HAS ARGUED\nIT IS) AND THAT IT DOES NOT ENTAIL THE TYPE OR TOKEN\nREDUCIBILITY OF THE SUPERVENIENT PROPERTIES TO THE\nPROPERTIES UPON WHICH THEY SUPERVENE (AS STRONG\nSUPERVENIENCE DOES). IT THEN TURNS TO AN EXAMINATION OF THE\nARGUMENT THAT GLOBAL SUPERVENIENCE IS EQUIVALENT TO\nIMPLICIT DEFINABILITY WHICH ACCORDING TO BETH'S THEOREM\nENTAILS EXPLICIT DEFINABILITY. THE AUTHOR HOPES TO SHOW\nTHAT GLOBAL SUPERVENIENCE IS A DISTINCT AND ESPECIALLY\nINTERESTING RELATION WHICH CAPTURES ASPECTS OF THE\nRELATIONSHIP BETWEEN (...) PHYSICAL PROPERTIES AND THOSE\nPROPERTIES WHICH ARE DETERMINED BY THEM THAT OTHER\nRELATIONS DO NOT DO JUSTICE TO. (shrink)

Philosophical Investigations, Volume 45, Issue 2, Page 107-129, April 2022.

What does the passage of time consist in? There are some suggestive metaphors. âEvents approach us, pass us, and recede from us, like sticks and leaves floating on the river of time.â âWe are moving from the past into the future, like ships sailing into an unknown ocean.â There is surely something right and deep about these metaphors. But how close are they to the literal truth? In this book Bradford Skow argues that they are far from the literal (...) truth. Skowâs argument takes the form of a defense of the block universe theory of time, a theory that, in many ways, treats time as a dimension of reality that closely resembles the three dimensions of space. Opposed to the block universe theory of time are theories that take the metaphors more seriously: presentism, the moving spotlight theory, the growing block theory, and the branching time theory. These are theories of ârobustâ passage of time, or âobjective becoming.â Skow argues that the best of these theories, the block universe theoryâs most worthy opponent, is the moving spotlight theory, the theory that says that âpresentnessâ moves along the series of times from the past into the future. Skow defends the moving spotlight theory against the objection that it is inconsistent, and the objection that it cannot answer the question of how fast time passes. He also defends it against the objection that it is incompatible with Einsteinâs theory of relativity. Skow proposes several ways in which the moving spotlight theory may be made compatible with the theory of relativity. Still, this book is ultimately a defense of the block universe theory, not of the moving spotlight theory. Skow holds that the best arguments against the block universe theory, and for the moving spotlight theory, start from the idea that, somehow, the passage of time is given to us in experience. Skow discusses several different arguments that start from this idea, and argues that they all fail. (shrink)

It has been not atypical for commentators to argue that Aristotelian friendship features disinterested concern for others, that is, concern for others that is completely independent of one's own happiness. Often, the relevant commentators point to some normative features of Aristotelian friendship, wishing goods for the other's sake and loving the other for herself, where these are assumed to be disinterested. While the disinterested interpretations may be correct overall, I argue that wishing goods for the other's sake and loving the (...) other for herself constitute a dubious foundation for disinterested interpretations. For wishing goods for the other's sake does not involve a reason for action on the other's behalf, and the primary point of loving the other for herself is the role of the other in facilitating one's own happiness, specifically conceived of by Aristotle in terms of one's own virtuous activity. (shrink)

A passive brain–computer interface based upon functional near-infrared spectroscopy brain signals is used for earlier detection of human drowsiness during driving tasks. This BCI modality acquired hemodynamic signals of 13 healthy subjects from the right dorsolateral prefrontal cortex of the brain. Drowsiness activity is recorded using a continuous-wave fNIRS system and eight channels over the right DPFC. During the experiment, sleep-deprived subjects drove a vehicle in a driving simulator while their cerebral oxygen regulation state was continuously measured. Vector phase analysis (...) was used as a classifier to detect drowsiness state along with sleep stage-based threshold criteria. Extensive training and testing with various feature sets and classifiers are done to justify the adaptation of threshold criteria for any subject without requiring recalibration. Three statistical features along with six VPA features were used. The average accuracies for the five classifiers are 90.9% for discriminant analysis, 92.5% for support vector machines, 92.3% for nearest neighbors, 92.4% for both decision trees, and ensembles over all subjects’ data. Trajectory slopes of CORE vector magnitude and angle: m and m are the best-performing features, along with ensemble classifier with the highest accuracy of 95.3% and minimum computation time of 40 ms. The statistical significance of the results is validated with a p-value of less than 0.05. The proposed passive BCI scheme demonstrates a promising technique for online drowsiness detection using VPA along with sleep stage classification. (shrink)

This paper examines the ethical foundations of the Islamic financial industry which is strongly criticized for its similarity with conventional finance. In this paper, we argue that this criticism is based on the consequentialist reasoning. The deontological considerations are largely ignored when the focus is on aggregate returns and associated product features. We build an economic model which allows us to examine the implementation of deontological rules in the Islamic financial products along with examining their consequences. We show that the (...) market forces may cause the returns and the attributes of Islamic financial products to converge with conventional finance even though the industry may be adhering to the Islamic deontological rules. We build a model to show that there may exist ‘Epsilon States’ where the deontological rules are followed by the Islamic finance industry, but their impact is not significant. We argue that the source of these ‘Epsilon States’ could be either moral uncertainty or costly monitoring. The presence of these ‘Epsilon States’ enable Islamic financial institutions with weak ethical commitments to create financial products where the deontological rules are followed, but their impact remains insignificant. (shrink)