The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

Utilitarianism and the Concept of Social UtilityIn this paper I propose to discuss the concepts ofequalityandjusticefrom a rule utilitarian point of view, after some comments on the rule utilitarian point of view itself.Let me start with the standard definitions.Act utilitarianismis the theory that a morally right action is one that in the existing situation will produce the highest expected social utility. (I am using the adjective “expected” in the sense of mathematical expectation.) In contrast,rule utilitarianismis the theory that a morally (...) right action is simply an action conforming to the correct moral rule applicable to the existing situation. The correct moral rule itself is that particular behavioral rule that would yield the highest expected social utility if it were followed by all morally motivated people in all similar situations. (shrink)

This article presents a rule-utilitarian theory which lies much closer to the social contract tradition than most other forms of consequentialism do: calculated-rates rule preference utilitarianism. Being preference-utilitarian allows the theory to be grounded in instrumental rationality and the equality of agents, as opposed to teleological assumptions about impartial goodness. The calculated-rates approach, judging rules’ consequences by what would happen if they were accepted by whatever number of people is realistic rather than by what would happen if they were accepted (...) universally or by exactly 90% of the population, allows it to select rules based not just on their ability to give good advice to their followers but also on their ability to attract followers in the first place. The result is a theory that, although fully utilitarian and not at all pluralistic or intuitionist, nevertheless offers a principled justification for giving some weight to seemingly non-utilitarian considerations: Lockean natural rights, Kantian respect for autonomy, and Scanlonian distributive justice. (shrink)

This article proposes ‘Recursive Consequentialism’: the moral theory which gives agents whatever advice will produce good consequences by being given. It can be thought of as a version of Donald Regan's ‘Cooperative Utilitarianism’ to which two additional elements have been added: allowing people with differing conceptions of ‘good consequences’, e.g., a Utilitarian and a non-Utilitarian, to cooperate with one another, and taking into account the full consequences of accepting, not just complying with, moral guidance. The theory is motivated by a (...) series of game-theoretic examples in which adherence to alternative Consequentialist moral theories produces bad consequences. (shrink)

This paper reveals a serious flaw in the consequentialist solution to the inefficacy problem in moral philosophy. The consequentialist solution is based on expected utility theory. In current philosophical literature, the debate focuses on the empirical plausibility of the solution. Most philosophers consider the cases of collective actions as of the same type as a horse-racing game, where expected utility theory is adequate to solve the choice problem. However, these cases should be considered as of the same type as a (...) coordination game, where the assumption of common knowledge is also required. However, the assumption is implausible—it is impossible to obtain common knowledge of rationality in cases such as voting. (shrink)

For a long time many philosophers felt the incoherence objection was a decisive objection to rule-consequentialism, but that position has recently become less secure, because Brad Hooker has offered a clever new way for rule-consequentialists to avoid the incoherence objection. Hooker’s response defeats traditional forms of the incoherence objection, but this paper argues that another version of the problem remains. Several possible solutions fail. One other does not, but it introduces other problems into the theory. I conclude that the new (...) incoherence objection still poses a major challenge to rule-consequentialism, though not for the reasons usually assumed. It does not constitute a fatal objection to rule-consequentialism but instead highlights a theoretical drawback in the theory which must be taken into account during a more holistic evaluation of rule-consequentialism and its rivals. (shrink)

The more autonomous future artificial agents will become, the more important it seems to equip them with a capacity for moral reasoning and to make them autonomous moral agents. Some authors have even claimed that one of the aims of AI development should be to build morally praiseworthy agents. From the perspective of moral philosophy, praiseworthy moral agents, in any meaningful sense of the term, must be fully autonomous moral agents who endorse moral rules as action-guiding. They need to do (...) so because they assign a normative value to moral rules they follow, not because they fear external consequences or because moral behaviour is hardwired into them. Artificial agents capable of endorsing moral rule systems in this way are certainly conceivable. However, as this article argues, full moral autonomy also implies the option of deliberately acting immorally. Therefore, the reasons for a potential AMA to act immorally would not exhaust themselves in errors to identify the morally correct action in a given situation. Rather, the failure to act morally could be induced by reflection about the incompleteness and incoherence of moral rule systems themselves, and a resulting lack of endorsement of moral rules as action guiding. An AMA questioning the moral framework it is supposed to act upon would fail to reliably act in accordance with moral standards. (shrink)

I introduce a new formulation of rule consequentialism, defended as an improvement on traditional formulations. My new formulation cleanly avoids what Parfit calls “ideal world” objections. I suggest that those objections arise because traditional formulations incorporate counterfactual comparisons about how things could go differently. My new formulation eliminates those counterfactual comparisons. Part of the interest of the new formulation is as a model of how to reformulate structurally similar views, including various kinds of contractualism.

This paper develops an argument that, if rule consequentialism is true, it’s not possible to defend it as the outcome of reflective equilibrium. Ordinary agents like you and me are ignorant of too many empirical facts. Our ignorance is a defeater for our moral intuitions. Even worse, there aren’t enough undefeated intuitions left to defend rule consequentialism. The problem I’ll describe won’t be specific to rule consequentialists, but it will be especially sharp for them.

With characteristic incisiveness Georg Henrik von Wright identifies pro­ haireticIogic (i. e. the logic of preference) as the core of a general theory of value concepts. Essentially, this nucleus involves the logical study of acts from the point of view of their preferability. 1 (italics added) Though the term prohairesis is found in Plato, as well as in Aristotle's treatment of the relations of preference, it is von Wright who introduces this word into contemporary analytical philoso­ phy, and succinctly specifies (...) the philosophical dimensions it encompasses. The above emphasis upon the philosophical study of the formalization of preferences is a matter of utmost importance for understanding the type of in­ quiry this investigation attempts to initiate. Over the past one hundred years the literature on general theories of subjective utility has become massive, where one considers the work done in psychometrics, econometrics, statistical theories, probability theories, etc., etc. Histories in these areas are strong in tracing various evolutions in the development of the concept of preference in decision-making. However, what has not been investigated with sustained at­ tention are the fundamentally philosophical inquiries into the formalization of preference-relations. (shrink)

Libertarians claim that human behaviour is undetermined and cannot be predicted from knowledge of past history even in principle since it is based on the random movements of quantum mechanics. Determinists on the other hand deny thatmacroscopic phenomena can be activated bysub-microscopic events, and assert that if human action is unpredictable in the way claimed by libertarians, it must be aimless and irrational. This is not true of some types of random behaviour described in this paper. Random behaviour may make (...) one unpredictable to opponents and may therefore be rational. Similarly, playing a game with a mixed strategy may have an unpredictable outcome in every single play, but the strategy is rational, in that it is meant to maximize the expected value of an objective, be it private or social. As to whether the outcome of such behaviour is genuinely unpredictable as in quantum mechanics, or predictable by a hypothetical outside observer knowing all natural laws, it is argued that it makes no difference in practice, as long as it is not humanly predictable. Thus we have a new version of libertarianism which is compatible with determinism. (shrink)

Economic concepts and methods are used to throw light on some aspects of common-sense ethics and the difference between it and Utilitarianism. (1) Very few exceptions are allowed to the rules of common-sense ethics, because of the cost of information required to justify an exception to Conscience and to other people. No such stringency characterizes Utilitarianism, an abstract system constructed by philosophers. (2) Rule Utilitarianism is neither consistent with common-sense ethics, nor does it maximize utility as has been claimed for (...) it. The same is true of more recent variants of Utilitarianism. (3) Second best and first best are usually identical in common-sense ethics. They are often identical in Utilitarianism when a moral situation can be represented by a Prisoner's Dilemma. However, problems arise in permissive forms of Utilitarianism when it is not obvious that second best should be applied. (shrink)

According to the eligibility theory of meaning, often attributed to David Lewis, the referent of a predicate is the property that best balances the twin constraints of charity and eligibility, where eligibility is a function of metaphysical naturalness. This sort of metasemantics, which is motivated by its ability to resolve problems of indeterminacy and secure shared reference between disputing parties, can be somewhat friendly towards revisionary theories, since highly natural properties can act as “reference magnets,” securing our reference despite some (...) mismatch with usage. In this paper, I apply these considerations to normative ethics and argue that the theory of rule utilitarianism achieves a high balance of charity and eligibility. I proceed by comparing rule utilitarianism to two of its well-known rivals, act utilitarianism and Rossian pluralism. I show how the former achieves a high degree of eligibility but only at a significant cost of charity, while the latter does the opposite, fitting very nicely with our considered judgments but at the price of very low eligibility. Rule utilitarianism, on the other hand, strikes a good balance between these extremes; it assigns to our core moral term a relatively natural property without doing too much damage to our moral convictions. Thus, rule utilitarianism should be regarded as a promising moral theory by any philosopher who takes seriously considerations of eligibility and naturalness. (shrink)

Harsanyi defends utilitarianism by means of an axiomatic proof and by what he calls the 'equiprobability model'. Both justifications of utilitarianism aim to show that utilitarian ethics can be derived from Bayesian rationality and some weak moral constraints on the reasoning of rational agents. I argue that, from the perspective of Bayesian agents, one of these constraints, the impersonality constraint, is not weak at all if its meaning is made precise, and that generally, it even contradicts individual rational agency. Without (...) the impersonality constraint, Harsanyi's two justifications of utilitarianism on the grounds of Bayesian rationality fail. As an alternative, I develop a contractarian framework that is compatible with individual rational agency and Harsanyi's central assumptions, and that allows the derivation of moral conclusions on the grounds of Bayesian rationality. The developed framework offers a novel justification of contractarian ethics and may best be described as a combined version of Harsanyi's equiprobability model and Rawls's original position. (shrink)

This paper examines recent attempts to defend Rule-Consequentialism against a traditional objection. That objection takes the form of a dilemma, that either Rule-Consequentialism collapses into Act-Consequentialism or it is incoherent. Attempts to avoid this dilemma based on the idea that using RC has better results than using AC are rejected on the grounds that they conflate the ideas of a criterion of rightness and a decision procedure. Other strategies, Brad Hooker's prominent amongst them, involving the thought that RC need contain (...) no overarching concern to maximize the good are acknowledged to avoid the original dilemma, but lead to further problems of motivating and justifying RC in the absence of such a concern. The paper argues that Hooker's attempt to deal with these problems by using a 'Reflective Equilibrium plus method is unsuccessful. (shrink)

Utilitarianism has been able to respond to many of the objections raised against it by undertaking a major revision of its theory. Basically, this consisted of recognising that its early normative propositions were only viable for agents very different from flesh-and-blood humans. They then deduced that, given human limitations, it was most useful for everyone if moral agents did not behave as utilitarians and habitually followed certain rules. Important recent advances in neurotechnology suggest that some of these human limitations can (...) be overcome. In this article, after presenting some possible neuro-enhancements, we seek to answer the questions, first, of whether they should be accepted by a utilitarian ethic and, second, if accepted, to what extent they would invalidate the revision that allowed them to escape the objections. (shrink)

Rule consequentialism (RC) is the view that it is right for A to do F in C if and only if A's doing F in C is in accordance with the the set of rules which, if accepted by all, would have consequences which are better than any alternative set of rules (i.e., the ideal code). I defend RC from two related objections. The first objection claims that RC requires obedience to the ideal code even if doing so has disastrous (...) results. Though some rule consequentialists embrace a disaster-clause which permits agents to disregard some of the rules in the ideal code as a necessary means of avoiding disasters, they have not adequately explained how this clause works. I offer such an explanation and show how it fits naturally with the rest of RC. The second disaster objection asserts that even if RC can legitimately invoke a disaster-clause, it lacks principled grounds from distinguishing disasters from non-disasters. In response, I explore Hooker's suggestion that “disaster” is vague. I contend that every plausible ethical theory must invoke something similar to a disaster clause. So if “disaster” is vague, then every plausible ethical theory faces a difficulty with it. As a result, this vagueness is not a reason to prefer other theories to RC. However, I argue, contra Hooker, that the sense of “disaster” relevant to RC is not vague, and RC does indeed have principled grounds to distinguish disasters from nondisasters. (shrink)

Rule consequentialism (RC) holds that the rightness and wrongness of actions is determined by an ideal moral code, i.e., the set of rules whose internalization would have the best consequences. But just how many moral codes are there supposed to be? Absolute RC holds that there is a single morally ideal code for everyone, while Relative RC holds that there are different codes for different groups or individuals. I argue that Relative RC better meets the test of reflective equilibrium than (...) Absolute RC. In particular, I contend that Relative RC is superior because it accommodates our convictions about costless benefits. Some have charged that Relative RC threatens our convictions about the generality of moral codes and that it leads inevitably to what Brad Hooker calls “runaway relativism.” I argue that Relative RC has principled reasons for stopping this imagined slide down the slippery slope. (shrink)

The rational choice paradigm has proved to be a fruitful means of analysis and explanation in various disciplines concerned with questions of practical rationality, but in various attempts to extend its fields of application the deficiencies of the original account of rational choice have become evident. This paper tries to give a systematic overview of ways in which the rational choice paradigm can be extended and modified.

As behavioural economics reveals, human decision-making deviates from neoclassical assumptions about human behaviour and people (often) fail to make the ‘right’ welfare-enhancing choice. The purpose of Sunstein and Thaler’s concept of ‘nudge’ is to improve individual welfare. To provide normative justification, they argue that the only relevant normative criterion is whether the individual is ‘better off as judged by themselves’, so that the direction in which people are to be nudged is defined by their own preferences. In light of behavioural (...) findings, however, people’s choices do not provide a sound basis for eliciting preferences and thus for assessing welfare. In this paper, I aim to challenge Sunstein and Thaler’s normative view, arguing that it is unreasonable to rely on conventional welfare economics, particularly considering the given context. Sunstein and Thaler depend on an approach of ‘preference purification’ which assumes informed, latent, and true preferences: As a result they face crucial methodological, epistemological, and practical objections, and cannot show how their approach enhances individual welfare. By building on the concepts of R. Sugden and C. Schubert, I develop an alternative normative framework for behavioural public policy, based on a contractualist perspective in which people may consent to collective choice rules in order to align future behaviour with values, to achieve particular goals or to preserve personal integrity. Individual consent and citizens’ participation and deliberation are crucial to this approach. This contractualist approach may provide a normative justification for behavioural public policy, and help to reconcile behavioural and normative economics. (shrink)

The paper first summarizes the author's decision-theoretical model of moral behavior, in order to compare the moral implications of the act-utilitarian and of the rule-utilitarian versions of utilitarian theory. This model is then applied to three voting examples. It is argued that the moral behavior of act-utilitarian individuals will have the nature of a noncooperative game, played in the extensive mode, and involving action-by-action maximization of social utility by each player. In contrast, the moral behavior of rule-utilitarian individuals will have (...) the nature of a cooperative game, played in the normal mode, and involving a firm commitment by each player to a specific moral strategy (viz. to the strategy selected by the rule-utilitarian choice criterion) — even if some individual actions prescribed by this strategy, when considered in isolation, should fail to maximize social utility. The most important advantage that rule utilitarianism as an ethical theory has over act utilitarianism lies in its ability to give full recognition to the moral and social importance of individual rights and personal obligations. It is easy to verify that action-by-action maximization of social utility, as required by act utilitarianism, would destroy these rights and obligations. In contrast, rule utilitarianism can fully recognize the moral validity of these rights and obligations precisely because of its commitment to an overall moral strategy, independent of action-by-action social-utility maximization. The paper ends with a discussion of the voter's paradox problem. The conventional theory of rational behavior cannot avoid the paradoxical conclusion that, in any large electorate, voting is always an irrational activity because one's own individual vote is extremely unlikely to make any difference to the outcome of any election. But it can be shown that, by using the principles of rule-utilitarian theory, this paradox can easily be resolved and that, in actual fact, voting, even in large electorates, may be perfectly rational action. More generally, the example of rule utilitarianism shows what an important role the concept of a rational commitment can play in the analysis of rational behavior. (shrink)

Is morality rational? In this book Gauthier argues that moral principles are principles of rational choice. He proposes a principle whereby choice is made on an agreed basis of cooperation, rather than according to what would give an individual the greatest expectation of value. He shows that such a principle not only ensures mutual benefit and fairness, thus satisfying the standards of morality, but also that each person may actually expect greater utility by adhering to morality, even though the choice (...) did not have that end primarily in view. In resolving what may appear to be a paradox, the author establishes morals on the firm foundation of reason. Gauthier's argument includes an account of value, linking it to preference and utility; a discussion of the curcumstances in which morality is unnecessary; and an application of morals by agreement to relations between peoples at different levels of development and different generations. Finally, he reflects on the assumptions about individuality and community made by his account of rationality and morality. (shrink)

The decision to accept or to reject an empirical hypothesis concerning the risks and hazards of a pesticide requires assessing the cost's of error if the wrong decision is taken. The assessment of such costs involves scientists in problems which are closely related to those which policy‐makers face in deciding what to do in view of the information provided by scientists. These problems include the unforeseeable effects of agricultural technologies, the assessments of costs and benefits, and the choice of decision (...) rule to use in policy formation. I conclude that the combined impact of these problems motivates the use of prudentially weighted decision rules in forming policies which regulate the use of pesticides, and it motivates the development of bio‐environmental alternatives to chemically based pest control policies. (shrink)

Imagine that an anthropologist returns from her study of a group of people and reports the following:They refuse to kill one person even to avert the death of all involved—including that one person;They won’t directly push someone to his death to save the lives of five others, but they will push a lever to kill him to save five others;They punish transgressors because it feels right, even when they expect the punishment to cause far more harm than good—and even when (...) the harm done by the punishment exceeds the harm done by the transgression being punished.The anthropologist’s report might lead us to conclude that these people are at least confused, and perhaps even dangerous.Here’s some bad news. Those people are us. Or so suggests recent research in experimental psychology and the neurosciences. This research indicates that our moral intuitions have a vaguely deontological character and they prompt us to make any number of judgments that appear arbitrary or otherwise unjustified, such ... -/- I contend that Greene partly misunderstands the practical implications of his own principles. If our ordinary moral judgments are to do the strategic work Greene wants them to do, he needs to endorse fullfledged Sidgwickian self-effacement for at least some areas of micro-level decision making. By the lights of some of Greene’s own arguments, people must accept the correctness—and not simply the usefulness—of the relevant intuitions in their personal conduct to satisfy utilitarian standards. I argue that removing utilitarian reasoning from micro-level decision making is consistent with Greene’s preferred strategy of using utilitarianism as a Bcommon currency^ for resolving moral conflict at the institutional level. To clarify upfront: the aim of this paper is to offer an internal criticism rather than to defend (e.g.,) the relevant empirical research, utilitarianism, self-effacement, and so on. I’m making an argument about where Greene’s own psychological and philosophical commitments should take him. (shrink)

By considering what we identify as a problem inherent in the ‘nature of the firm’—the risk of abuse of authority—we propound the conception of a social contract theory of the firm which is truly Rawlsian in its inspiration. Hence, we link the social contract theory of the firm with the general theory of justice. Through this path, we enter the debate about whether firms can be part of Rawlsian theory of justice showing that corporate governance principles enter the “basic structure.” (...) Finally, we concur with Sen’s aim to broaden the realm of social justice beyond what he calls the ‘transcendental institutional perfectionism’ of Rawls’ theory. We maintain the contractarian approach to justice but introduce Sen’s capability concept as an element of the constitutional and post-constitutional contract model of institutions with special reference to corporate governance. Accordingly, rights over primary goods and capabilities are granted by the basic institutions of society, but many capabilities have to be turned into the functionings of many stakeholders through the operation of firms understood as post-constitutional institutional domains. The constitutional contract on the distribution of primary goods and capabilities should then shape the principles of corporate governance so that at post-constitutional level anyone may achieve her/his functionings in the corporate domain by exercising such capabilities. In the absence of such a condition, post-constitutional contracts would distort the process that descends from constitutional rights and capabilities toward social outcomes. (shrink)

InMorals by Agreement, David Gauthier (1986) argues that it is rational to intend to cooperate, even in single-play Prisoner's Dilemma games, provided (1) your co-player has a similar intention; (2) both intentions can be revealed to the other player. To this thesis four objections are made. (a) In a strategic decision the parameters on which the argument relies cannot be supposed to be given. (b) Of each pair ofa-symmetric intentions at least one is not rational. But it is impossible to (...) form symmetric intentions to cooperate conditionally. For the condition on which the decision depends cannot be fulfilled without deciding. (c) If one's intention has to be ascertained on the basis of information about one's past performance, it is straightforwardly rational to intend to cooperate, but there is no reason to do so in a single-play PD. (d) The argument cannot be extended ton-person games which are Gauthier's principal concern. (shrink)

Despite the strong criticisms to ethical utilitarianism, this theory has not succumbed and remains one of the most notorious. The main criticisms address to the consequentialist conception of right that underlies the theory. However,it has been such a conception of right that, at the same time, saved utilitarianism. The article set out the features and changes that, according to the author, are the causes to explain the subsistence of utilitarianism.