This paper responds to six contributions to a symposium on my 2018 book, The Community of Advantage. I defend that book's claim that most normative behavioural economics implicitly uses a psycholog...

We defend, from a contractarian perspective, that the fair price of an insurance policy is the amount that the contracting parties agree when they are both equally uncertain about the insured event. Drawing on the approach developed by R. Sugden in _The Community of Advantage_, we answer two standard objections raised against contractarianism in the actuarial sciences: (1) people are not wise enough to assess their actuarial risks; (2) they are not rational enough to decide which insurance policy suits them (...) better. We show under which circumstances people can make fair actuarial agreements, without presupposing any objective risk or rationality benchmarks. (shrink)

Normative welfare economics commonly assumes that individuals’ preferences can be reliably inferred from their choices and relies on preference satisfaction as the normative standard for welfare. In recent years, several authors have criticized welfare economists’ reliance on preference satisfaction as the normative standard for welfare and have advocated grounding normative welfare economics on opportunities rather than preferences. In this paper, I argue that although preference-based approaches to normative welfare economics face significant conceptual and practical challenges, opportunity-based approaches fail to provide (...) a more reliable and informative foundation for normative welfare economics than preference-based approaches. I then identify and rebut various influential calls to ground normative welfare economics on opportunities rather than preferences to support my qualified defence of preference-based approaches. (shrink)

Behavioral economics and existentialism both present informative perspectives on human choice. We argue in this article that the dialogue between the two approaches can enrich the current debate about the normative implications of behavioral economics. While behavioral economics suggests that our capacity to choose is constrained by cognitive biases and environmental influences, existentialism emphasizes that we can treat ourselves as free and ‘becoming’ beings in spite of the many constraints we face. Acknowledging these two perspectives in the form of a (...) theoretical synthesis—which we propose to call existentialist behavioral economics—provides us with reasons why we should protect our choices ‘as our own’ and how doing so may be more difficult than we anticipate. It also provides a framework to analyze the threat of identity-shaping social and technological developments, such as preference-altering nudges and artificially intelligent prediction algorithms. (shrink)