Frequent and open interaction between venture capitalists and entrepreneurs is necessary for venture capital investments to occur. Increasingly, these investments are made across jurisdictions. The vast majority of these cross-border investments are carried out in a syndicate of two or more VCs, indicating the effects of intra-industry networks needing further analysis. Using China as a model, we provide a novel multidimensional framework to explain cross-border investments in innovative ventures across developed and emerging economies. By analyzing a unique international dataset, we (...) examine worldwide venture capital investment flows from 2000–2012 and consider the effects of geographical, cultural, and institutional proximity as well as institutional and relational trust. We find trust to mitigate the negative effects of geographical and cultural distance, where institutional trust is more relevant for investments in emerging economies, and relational trust is more relevant for investments in developed economies. (shrink)

We survey the literature that has explored the implications of decision-making under ambiguity for financial market outcomes, such as portfolio choice and equilibrium asset prices. This ambiguity literature has led to a number of significant advances in our ability to rationalize empirical features of asset returns and portfolio decisions, such as the failure of the two-fund separation theorem in portfolio decisions, the modest exposure to risky securities observed for a majority of investors, the home equity preference in international portfolio diversification, (...) the excess volatility of asset returns, the equity premium and the risk-free rate puzzles, and the occurrence of trading break-downs. (shrink)

Bruno Latour once argued that science laboratories actively modify the wider society by displacing crucial actors outside the laboratory into the “field.” This article turns this idea on its head by using the case of geothermal energy utilization to demonstrate that in many cases it is the experimental setup outside the laboratory that is there first, with the activities normally associated with a laboratory setting only being decided upon and implemented post hoc. As soon as the actors involved perceive unknowns (...) and uncertainties, these are relocated to various kinds of closed laboratories to be dealt with in a more controlled environment. This is done, for instance, by inviting stakeholders to laboratory-like settings or by analyzing the geochemical composition of fluids in laboratories. Thus, the risk-laden production of new knowledge by means of real-world experimentation amounts to a practice of relocating the context of discovery in society to laboratories of justification sometimes defined as such post hoc. Experimental processes in society can then be conceptualized as “real” experiments and laboratory activities as merely temporarily subordinated components of the larger experiment. (shrink)

The paper points out that in dynamic games a player may be better-off if other players do not know his choice of strategy. That is, a player may benefit by not revealing (or not pre-determining) the choice of his action in an information set he (thereby) hopes will not be reached. He would be better-off by exercising his ``right to remain silent'' if he believes –- as the empirical evidence shows –- that players display aversion to ``Knightian uncertainty''. In this (...) case, a player who behaves strategically, may wish to avoid revealing his strategy. This is true under various interpretations of the notion of ``strategy profiles''. (shrink)

Online financial service is an essential part of consumption services provided by companies in modern society. It is vital to figure out the underlying mechanisms that influence online financial service use of college students in China, which is seldom explored. Drawing on the theory of planned behavior, this study explores the effect of personality traits and its joint effect with attitude on online financial service use of college students. Moreover, we examined the interaction effects of key variables in TPB in (...) the context of online financial services. The results indicated that the materialism value of Chinese college students has no direct effect on their intention to use online financial services but exerts an indirect effect through their attitude toward online financial services. College students' attitudes and perceived behavioral control are associated with their subjective norms, and in turn, affect their use intention of online financial services. In addition, perceived risk and perceived usefulness of online financial services also affect use intention through attitude and perceived behavioral control. The discussion of key findings, implications, and conclusions are provided. (shrink)

Research about the role of religion in entrepreneurship and more broadly management is sparse. In this conceptual article, we complement existing entrepreneurship theory by examining entrepreneurship from an Islamic perspective. EIP is based on three interconnected pillars: the entrepreneurial, socio-economic/ethical, and religio-spiritual. We outline how Islam shapes entrepreneurship at the micro-, meso-, and macro-level, indicate how Islam may be considered an entrepreneurial religion in the sense that it enables and encourages entrepreneurial activity, review research streams interlinking Islam with entrepreneurship and (...) management and outline promising research approaches. (shrink)

Economic theory reduces the concept of rationality to internal consistency. As far as beliefs are concerned, rationality is equated with having a prior belief over a “Grand State Space”, describing all possible sources of uncertainties. We argue that this notion is too weak in some senses and too strong in others. It is too weak because it does not distinguish between rational and irrational beliefs. Relatedly, the Bayesian approach, when applied to the Grand State Space, is inherently incapable of describing (...) the formation of prior beliefs. On the other hand, this notion of rationality is too strong because there are many situations in which there is not sufficient information for an individual to generate a Bayesian prior. It follows that the Bayesian approach is neither sufficient not necessary for the rationality of beliefs. (shrink)

It is argued that, contrary to a rather prevalent view within economic theory, rationality does not imply Bayesianism. The note begins by defining these terms and justifying the choice of these definitions, proceeds to survey the main justification for this prevalent view, and concludes by highlighting its weaknesses.

This note argues that, under some circumstances, it is more rational not to behave in accordance with a Bayesian prior than to do so. The starting point is that in the absence of information, choosing a prior is arbitrary. If the prior is to have meaningful implications, it is more rational to admit that one does not have sufficient information to generate a prior than to pretend that one does. This suggests a view of rationality that requires a compromise between (...) internal coherence and justification, similarly to compromises that appear in moral dilemmas. Finally, it is argued that Savage's axioms are more compelling when applied to a naturally given state space than to an analytically constructed one; in the latter case, it may be more rational to violate the axioms than to be Bayesian. (shrink)

Can the general public learn to deal with risk and uncertainty, or do authorities need to steer people’s choices in the right direction? Libertarian paternalists argue that results from psychological research show that our reasoning is systematically flawed and that we are hardly educable because our cognitive biases resemble stable visual illusions. For that reason, they maintain, authorities who know what is best for us need to step in and steer our behavior with the help of “nudges.” Nudges are nothing (...) new, but justifying them on the basis of a latent irrationality is. In this article, I analyze the scientific evidence presented for such a justification. It suffers from narrow logical norms, that is, a misunderstanding of the nature of rational thinking, and from a confirmation bias, that is, selective reporting of research. These two flaws focus the blame on individuals’ minds rather than on external causes, such as industries that spend billions to nudge people into unhealthy behavior. I conclude that the claim that we are hardly educable lacks evidence and forecloses the true alternative to nudging: teaching people to become risk savvy. (shrink)

Axiomatic rationality is defined in terms of conformity to abstract axioms. Savage limited axiomatic rationality to small worlds, that is, situations in which the exhaustive and mutually exclusive set of future states S and their consequences C are known. Others have interpreted axiomatic rationality as a categorical norm for how human beings should reason, arguing in addition that violations would lead to real costs such as money pumps. Yet a review of the literature shows little evidence that violations are actually (...) associated with any measurable costs. Limiting axiomatic rationality to small worlds, I propose a naturalized version of rationality for situations of intractability and uncertainty, all of which are not in. In these situations, humans can achieve their goals by relying on heuristics that may violate axiomatic rationality. The study of ecological rationality requires formal models of heuristics and an analysis of the structures of environments these can exploit. It lays the foundation of a moderate naturalism in epistemology, providing statements about heuristics we should use in a given situation. Unlike axiomatic rationality, ecological rationality can explain less-is-more effects, formalize when one should move from ‘is’ to ‘ought,’ and be evaluated by goals beyond coherence, such as predictive accuracy, frugality, and efficiency. Ecological rationality can be seen as a formalization of means–end instrumentalist rationality, based on Herbert Simon’s insight that rational behavior is a function of the mind and its environment. (shrink)

Accounts of change in contemporary research in industry and the academy often note the increasing coexistence of market and academic norms and practices. This article suggests that, at least in industry, these conflicting norms and practices are often preserved by loose coupling between market pressures and the research organization. Based on a two-year case study, this article examines the imposition of tight coupling at an industry lab that had previously been able to maintain some of the norms and practices associated (...) with the academy. Tight market coupling limited the role of judgment in the governance of research. First, a market-based quantitative project selection system delegitimized expert judgment. As a result, projects with obvious market and technical uncertainties were more difficult to justify. Second, objective, market-based oversight also limited the role of expert judgment. Tracking the return on investment of scientists’ hours with time cards had the effect of discouraging time spent on learning or exploratory work. In many cases, researchers argued that displacement of judgment for a quantitative governance system caused work to shift away from research and toward product development. (shrink)

Recent progress in synthetic biology has enabled the development of novel therapeutic opportunities for the treatment of human disease. In the near future, first-in-human trials will be indicated. FIH trials mark a key milestone in the translation of medical SynBio applications into clinical practice. Fostered by uncertainty of possible adverse events for trial participants, a variety of ethical concerns emerge with regards to SynBio FIH trials, including ‘risk’ minimization. These concerns are associated with any FIH trial, however, due to the (...) novelty of the approach, they become more pronounced for medical applications of emerging technologies like SynBio. To minimize potential harm for trial participants, scholars, guidelines, regulations and policy makers alike suggest using ‘risk assessment’ as evaluation tool for such trials. Conversely, in the context of emTech FIH trials, we believe it to be at least questionable to contextualize uncertainty of potential adverse events as ‘risk’ and apply traditional risk assessment methods. Hence, this issue needs to be discussed to enable alterations of the evaluation process before the translational phase of SynBio applications begins. In this paper, we will take the opportunity to start the debate and highlight how a misunderstanding of the concept of risk, and the possibilities and limitations of risk assessment, respectively, might impair decision-making by the relevant regulatory authorities and research ethics committees, and discuss possible solutions to tackle the issue. (shrink)

Thomas Piketty’s Capital and Ideology offers a powerful critique of ideological justifications for inequality in capitalist societies. Does this mean we should reject capitalist institutions altogether? This paper defends some aspects of capitalism by explaining the epistemic function of market economies and their ability to harness capital to meet the needs of the relatively disadvantaged. We support this classical liberal position with reference to empirical research on historical trends in inequality that challenges some of Piketty’s interpretations of the data. Then (...) we discuss the implications of this position in terms of limits on the efficacy of participatory governance within firms and the capacity of the state to levy systematic taxes on wealth. (shrink)

This article explores whether and how long-term investors influence non-executive employees’ incentives. While long-term investors benefit from long-term investments that create value over time, employees tend to be averse to long-term investments. We conjecture that long-term investors foster employee-related CSR to motivate employees to engage in long-term investment projects. Consistent with this prediction, we find that long-term investor ownership is a strong driver of employee-related CSR. Additional analyses indicate that this result is not driven by self-selection or reverse causality. We (...) further show that employee-related CSR leads to increased long-term investments (R&D expenses and corporate innovation). Overall, our findings highlight that employee-related CSR is an important channel through which long-term investors encourage long-term investments. (shrink)

Decisions in the environmental and in particular the climate domain are burdened with uncertainty. Here, we focus on uncertainties faced by individuals when making decisions about environmental behavior, and we use the statistical sampling framework to develop a classification of different sources of uncertainty they encounter. We then map these sources to different public policy strategies aiming to help individuals cope with uncertainty when making environmental decisions.

This note focuses on George Soros's challenge to macroeconomics and finance theory that any valid methodology of social science must explicitly recognize fallibility in a Knightian sense. We use a simple algebraic example to sketch how extant models formalize fallibility. We argue that contemporary theory's epistemological and empirical difficulties can be traced to assuming away fallibility in a Knightian sense. We also discuss how imperfect knowledge economics provides a way to open mathematical models to such fallibility, while preserving economics as (...) an empirical science. (shrink)

The recent proliferation of new data and technologies enables increasingly finer personalization of products and prices in every domain. In insurance, this revives and enlarges old debates around fairness that have never been completely settled. We will argue that the commonly accepted “actuarial fairness” as based on the “individual cost of risk” derives in fact from a conflation: while it indicates the average cost for a group of insureds from the perspective of an insurance company—and is therefore sound from a (...) business profitability viewpoint—it is arguable whether it represents the “fair price” for the individual insured. We first show in a historical perspective the intertwinement of conceptions of fairness with knowledge, in order to point to the alternative to actuarial fairness for insurance. We then describe the intrinsic difference between the insured and the insurer when underwriting an insurance contract. Finally, we build on this distinction to discuss the meaning of fairness in insurance prices. We thus hope to re-center the debate around insurance fairness on its underlying solidarity mechanisms rather than technical and actuarial considerations. (shrink)

A portfolio-resampling procedure invented by Richard and Robert Michaud is a subject of highly controversial discussion and big scientific dispute. It has been evaluated in many empirical studies and Monte Carlo experiments. Apart from the contradictory findings, the Michaud approach still lacks a theoretical foundation. I prove that portfolio resampling has a strong foundation in the classic theory of rational behavior. Every noise trader could do better by applying the Michaud procedure. By contrast, a signal trader who has enough prediction (...) power and risk-management skills should refrain from portfolio resampling. The key note is that in most simulation studies, investors are considered as noise traders. This explains why portfolio resampling performs well in simulation studies, but could be mediocre in real life. (shrink)

The paper studies the impact of informational ambiguity on behalf of informed traders on history-dependent price behaviour in a model of sequential trading in financial markets. Following Chateauneuf et al., we use neo-additive capacities to model ambiguity. Such ambiguity and attitudes to it can engender herd and contrarian behaviour, and also cause the market to break down. The latter, herd and contrarian behaviour, can be reduced by the existence of a bid-ask spread.

Economic sociologists have developed and applied theories and concepts in close connection with broadly economic phenomena, including, recently, embeddedness and actor network theory. Key to these theories is understandings of action given uncertainty in which actors develop calculative capabilities, and an emphasis on markets with boundaries and interstices as essential properties. This article reflects upon the connections between Parsons' and Smelser's economic sociology and that of contemporary authors including Granovetter, Callon and White. As a strange other to economics and to (...) sociology, economic sociology can develop research questions in considering arbitrage generally, rather than only restricted to financial markets. (shrink)

It is a commonplace that the discipline of economics has contributed to the current crisis, above all, because economic methodologies are charged with fatally inflating debt risk, such that collapse was the inevitable result. But what might be said of the role of law within this constellation? Much ink has been consumed detailing legal shortcomings within regulatory regimes for the financial services. However, a full accounting has yet to be made of the broader fault which may also be attributed to (...) the premises of modern and increasingly post-national law, especially as they coalesce with a broader abdication of political responsibility for crisis. This contribution begins this accounting, investigating the processes by which law has transformed itself into an economic technology within post-national regimes in its contemporary quest for material legitimacy. Above all, in its idolatry of the factual, law has itself become a power locus—especially within the European Union—that similarly pre-empts the politics within which social and economic stability might be defined and achieved. (shrink)

If we are to believe the proponents of the Theory of Practice and of Rational Choice, the gap between these two paradigmatic approaches cannot be bridged. They rely on ontological premises, theories of motivations and causal models that stand too far apart. In this article, I argue that this theoretical antinomy loses much of its edge when we take as objects of sociological investigation processes of historical change, that is, when we try to specify in theoretical terms how and in (...) which conditions historical actors enact and endorse shifts in patterns of relations as well as shifts in the symbolic and cognitive categories that make these relations significant. I substantiate this argument in light of the distinction between two temporalities of historical change: first, the long waves of gradual change and, second, the short waves of moments of breaks and ruptures. Along the way, I develop an argument about the conditions of emergence of self-limiting norms and the centrality of epistemic beliefs in situations of high disruption. (shrink)

The Precautionary Principle is typically construed as a conservative decision rule aimed at preventing harm. But Martin Peterson (JME 33: 5–10, 2007; The ethics of technology: A geometric analysis of five moral principles, Oxford University Press, Oxford, 2017) has argued that the principle is better understood as an epistemic rule, guiding decision-makers in forming beliefs rather than choosing among possible acts. On the epistemic view, he claims there is a principle concerning expert disagreement underlying precautionary-based reasoning called the ecumenical principle: (...) all expert views should be considered in a precautionary appraisal, not just those that are the most prominent or influential. In articulating the doxastic commitments of decision-makers under this constraint, Peterson precludes any probabilistic rule that might result in combining expert opinions. For combined or consensus probabilities are likely to provide decision-makers with information that is more precise than warranted. Contra Peterson, I argue that upon adopting a broader conception of probability, there is a probabilistic rule, under which expert opinions are combined, that is immune to his criticism and better represents the ecumenical principle. (shrink)

Although it may seem from its formalism that game theory must have sprung from the mind of John von Neumann as a corollary of his work on computers or theoretical physics, it should come as no real surprise to philosophers that game theory is the articulation of a historically developing philosophical conception of rationality in thought and action. The history of ideas about rationality is deeply contradictory at many turns. While there are theories of rationality that claim it is fundamentally (...) social and aims at understanding and molding all facets of human psychological life, game theory takes rationality to be essentially located in individuals and to concern only the means to achieve predetermined ends. Thus, there are some thinkers who have made important contributions to this history who do not appear in the story of game theory at all, among them, Plato, Kant, and Hegel. There is, however, a clear trail to follow linking theories of instrumental rationality from Aristotle to the nineteenth-century marginalist economists and ultimately to von Neumann and Morgenstern and contemporary game theorists, that historically grounds game theory as a model of rational interaction. (shrink)

The notion of risk plays a central role in economics, finance, health, psychology, law and elsewhere, and is prevalent in managing challenges and resources in day-to-day life. In recent work, Duncan Pritchard (2015, 2016) has argued against the orthodox probabilistic conception of risk on which the risk of a hypothetical scenario is determined by how probable it is, and in favour of a modal conception on which the risk of a hypothetical scenario is determined by how modally close it is. (...) In this article, we use Pritchard’s discussion as a springboard for a more wide-ranging discussion of the notion of risk. We introduce three different conceptions of risk: the standard probabilistic conception, Pritchard’s modal conception, and a normalcy conception that is new (though it has some precursors in the psychological literature on risk perception). Ultimately, we argue that the modal conception is ill-suited to the roles that a notion of risk is required to play and explore the prospects for a form of pluralism about risk, embracing both the probabilistic and the normalcy conceptions. (shrink)

Both I and Belnap, motivated the "Belnap-Dunn 4-valued Logic" by talk of the reasoner being simply "told true" (T) and simply "told false" (F), which leaves the options of being neither "told true" nor "told false" (N), and being both "told true" and "told false" (B). Belnap motivated these notions by consideration of unstructured databases that allow for negative information as well as positive information (even when they conflict). We now experience this on a daily basis with the Web. But (...) the 4-valued logic is deductive in nature, and its matrix is discrete: there are just four values. In this paper I investigate embedding the 4-valued logic into a context of probability. Jøsang's Subjective Logic introduced uncertainty to allow for degrees of belief, disbelief, and uncertainty. We extend this so as to allow for two kinds of uncertainty— that in which the reasoner has too little information (ignorance) and that in which the reasoner has too much information (conflicted). Jøsang's "Opinion Triangle" becomes an "Opinion Tetrahedron" and the 4-values can be seen as its vertices. I make/prove various observations concerning the relation of non-classical "probability" to non-classical logic. (shrink)

This paper aims to develop a framework for distributing risks. Based on a distinction between risks with reversible losses and risks with irreversible losses, I defend the following composite allocation principle: first, irreversible risks should be allocated on the basis of needs and only after some threshold level has been achieved can the remaining risks distributed in such a way that the total disvalue of these losses is minimized. An important advantage of this allocation framework is that it does not (...) require the aggregation of incommensurable values into one measure. (shrink)

Increasing the “truth per dollar” of money spent on science is one legitimate long-run goal of the economics of science. But before this goal can be achieved, we need to increase our knowledge of the successes and failures of past and current reward structures of science. This essay reviews what economists have learned about the behavior of scientists and the reward structure of science. One important use of such knowledge will be to help policy-makers create a reward structure that is (...) more efficient in the future. (shrink)

This research examined whether youth's forecasted risk taking is best predicted by a compensatory (namely, subjective expected utility) or non-compensatory (e.g., single-factor) model. Ninety youth assessed the importance of perceived benefits, importance of perceived drawbacks, subjective probability of benefits, and subjective probability of drawbacks for 16 risky behaviors clustered evenly into recreational and health/safety domains. In both domains, there was strong support for a noncompensatory model in which only the perceived importance of the benefits of engaging in a risky behavior (...) predicted youths' forecasted engagement in risky behavior. The study overcomes earlier methodological weaknesses by fully decomposing participants' assessments into importance and probability aspects for both benefits and drawbacks. As such, the findings provide clear evidence in support of a boundedrationality perspective on youth decision making regarding risk taking. (shrink)

Over the years I’ve written many papers defending an idiosyncratic version of interest-relative epistemology. This book collects and updates the views I’ve expressed over those papers. -/- Interest-relative epistemologies all start in roughly the same way. A big part of what makes knowledge important is that it rationalises action. But for almost anything we purportedly know, there is some action that it wouldn’t rationalise. I know what I had for breakfast, but I wouldn’t take a bet at billion to one (...) odds about it. Knowledge has practical limits. The first idiosyncratic feature of my version of interest-relative epistemology is how those limits are identified. Other interest-relative philosophers typically say that the limits have to do with stakes; in high stakes situations knowledge goes away. That’s no part of my view. I think knowledge goes away in long odds situations. High stakes situations are almost always are long odds situations, for reasons to do with the declining marginal utility of money. But the converse isn’t true. On my view, knowledge often goes away in cases where it is trivial to check before action. This idea, that interests matter in long odds cases, and not just in high stakes cases, is the main constant in what I’ve written on interest-relativity over the years. -/- But there are three other respects in which the view I’m going to set out and defend in this book is very different from the view I set out in older papers. -/- I used to identify the practical limits on knowledge with cases where relying on the purported knowledge would get the wrong answer. I focused, that is, on the outputs of inquiry. Knowledge goes away if relying on it would lead one to make a mistake. I now think I was looking at the wrong end of inquiry. Knowledge goes away if the thinker starts conducting an inquiry where the purported knowledge is an inappropriate starting point, and inappropriate for the special reason that it might be false. Now one way we can tell that something is a bad starting point is that starting there will mean we end up at the wrong place. But it’s not the only way. Sometimes a bad starting point will lead to the right conclusion for the wrong reasons. As the Nyāya philosophers argued, rational inquiry starts with knowledge. If it would be irrational to start this inquiry with a particular belief, that belief isn’t knowledge. -/- Not all inquiries are practical inquiries, but many are. And practical inquiries are usually going to be at the center of attention in this book. But what is someone trying to figure out when they conduct a practical inquiry? I used to think that they were trying to figure out which option maximised expected utility, and to a first approximation identified knowledge with those things one could conditionalise on without changing the option that maximised expected utility. As noted in the previous paragraph, I no longer think that we can identify knowledge with what doesn’t change our verdicts. But more importantly, I no longer think that expected utility maximisation is as central to practical inquiry as I once did. There are some theoretical reasons from game theory that raise some doubts about expected utility maximisation. Weak dominance reasoning is part of our theory of rational choice, and can’t be modelled as expected utility maximisation. Perhaps some kinds of equilibrium seeking are parts of practical inquiry, and can’t be modelled as expected utility maximisation. But there are also very practical reasons to think that practical inquiry doesn’t aim at expected utility maximisation. When there are a lot of very similar options - think about selecting a can from a supermarket shelf - and it’s more trouble than it’s worth to figure out which of them maximises expected utility, it’s best to ignore the differences between them and just pick. As I’ll argue in Chapter 6, this makes a big difference to how interests and knowledge interact. -/- In the version of interest-relativity that I’m defending here, everything in epistemology is interest-relative. Knowledge, rational belief, and evidence are all interest-relative. But they are all interest-relative in slightly different ways. The main aim here is to defend the interest-relativity of knowledge. A common objection to interest-relative theories of knowledge is that they can’t be extended into theories of all the things we care about in epistemology. Here I try to meet that challenge. The way I do so is a little messy. It would be nice if there was some part of epistemology that’s interest-invariant, as I used to think, or if all the interest-relative notions were interest-relative in the same way, as other interest-relative epistemologists argue. For better or worse, that’s not the view I’m defending. Interests matter throughout epistemology, and we just have to go case by case to figure out how and why they matter. (shrink)

What question are decision theorists trying to answer, and why is it worth trying to answer it? A lot of philosophers talk as if the aim of decision theory is to describe how we should make decisions, and the reason to do this is to help us make better decisions. I disagree on both fronts. The aim of the decision theory is to describe how a certain kind of idealised decider does in fact decide. And the reason to do this (...) is that this idealisation, like many other idealisations, helps generate explanations of real-world behaviour. We shouldn't do what these ideal deciders do, or try to be more like them, because a lot of what they do only makes sense because of the differences between us and them. Still, sometimes those differences are small enough that they can be ignored in explanations, and that's when decision theory is useful. (shrink)

We paraphrase Descartes’ famous dictum in the area of AI ethics where the “I doubt and therefore I am” is suggested as a necessary aspect of morality. Therefore AI, which cannot doubt itself, cannot possess moral agency. Of course, this is not the end of the story. We explore various aspects of the human mind that substantially differ from AI, which includes the sensory grounding of our knowing, the act of understanding, and the significance of being able to doubt ourselves. (...) The foundation of our argument is the discipline of ethics, one of the oldest and largest knowledge projects of human history, yet, we seem only to be beginning to get a grasp of it. After a couple of thousand years of studying the ethics of humans, we (humans) arrived at a point where moral psychology suggests that our moral decisions are intuitive, and all the models from ethics become relevant only when we explain ourselves. This recognition has a major impact on what and how we can do regarding AI ethics. We do not offer a solution, we explore some ideas and leave the problem open, but we hope somewhat better understood than before our study. (shrink)

in Undetermined Table d’Hôte Ingar Brinck: Investigating the development of creativity: The Sahlin hypothesis 7 Linus Broström: Known unknowns and proto-second-personal address in photographic art 25 Johan Brännmark: Critical moral thinking without moral theory 33 Martin Edman: Vad är ett missförhållande? 43 Pascal Engel: Rambling on the value of truth 51 Peter Gärdenfors: Ambiguity in decision making and the fear of being fooled 75 Göran Hermerén: NIPT: Ethical aspects 89 Mats Johansson: Roboethics: What problems should be addressed and why? 103 (...) Johan Laserna: Ambivalenta bilder 113 Anna-Sofia Maurin: Metaphysical explanation 161 Kevin Mulligan: Is preference primitive? 169 John D. Norton: How does your garden grow? 181 Johannes Persson & Annika Wallin: The distinction between internal and external validity 187 Johanna Seibt: Becoming our selves 197 Paul Slovic, Robin Gregory, David Frank, and Daniel Vastfjall: Confronting the collapse of humanitarian values in foreignpolicy decision making 209 Peter Sylwan: Det eviga livet 215 Claudine Tiercelin: Chance, love and logic: Ramsey and Peirce on norms, rationality and the conduct of life 221 Epilog 257 Frank Ramsey. (shrink)

What does it mean to be an aesthetic beholder? Is it different than simply being a perceiver? Most theories of aesthetic perception focus on 1) features of the perceived object and its presentation or 2) on psychological evaluative or emotional responses and intentions of perceiver and artist. In this chapter I propose that we need to look at the process of engaged perception itself, and further that this temporal process of be- coming a beholder must be understood in its embodied, (...) contextual and dynamic speci- ficity. Through both phenomenological and neuroscientific explorations I analyze what is characteristic about a more “aesthetic stance” and argue that there is a certain asym- metry between beholder and beheld, which has to do with a disengagement of goal- directed action, and which allows for other kinds of perceptual involvement than in a more “practical stance”. It is a multi-disciplinary project integrating a sensorimotor no- tion of aesthetic affordances, 18th century philosophy, and large-scale brain network findings. What ensues is a new dynamic framework for future empirical and theoretical research on aesthetic perception. (shrink)

I argue that many of the priority rankings that have been proposed by effective altruists seem to be in tension with apparently reasonable assumptions about the rational pursuit of our aims in the face of uncertainty. The particular issue on which I focus arises from recognition of the overwhelming importance and inscrutability of the indirect effects of our actions, conjoined with the plausibility of a permissive decision principle governing cases of deep uncertainty, known as the maximality rule. I conclude that (...) we lack a compelling decision theory that is consistent with a long-termist perspective and does not downplay the depth of our uncertainty while supporting orthodox effective altruist conclusions about cause prioritization. GPI Working Paper No. 2-2019. (shrink)

The goal of this article is to show that instrumental rationality and utility that have been used in economics for many years does not work well. What is presented in the article is how significant the influence of utilitarianism has been on economics and why the economists get rid of humans’ goals and motivations. It is shown in the article that the human who decides in present is absolutely different from the human who decides over time. Many economists neglected this (...) problem because they wanted to have an effective and simple model. Becker’s economic method is presented as a dead end to which economics has been brought to. It is impossible to connect different selves of one human being by using the utility measure. The works of Schelling and J.S. Mill are used to explain this impossibility. The conclusion of this article is that instrumental rationality and utility have affected economics significantly. But, this simplified view on human nature is no longer valid. Hence, economics needs to think not only about the means but also about the human goals. Economics needs to rebuff relativism and show people how to achieve well-being. If we want to help people with their self-governance, we will have to choose reason over emotions. (shrink)

Adverse environmental and economic impacts of Icelandic volcano triggered discussions about nature’s astounding and unpredictable fury, alongside the inadequacy of human ingenuity and science to deal with factors that are totally independent and practically impossible to control.The first part of this article discusses questions related to understanding of deep uncertainty and possibility of effectively combining qualitative and quantitative analysis. Apparently the problem of incorporating surprise, critical threshold and abrupt changes is well studied in finance, but its poor application led to (...) the latest financial crisis. It would be far more complicated when applied to complex or “wicked” events like deforestation, the conservation of endangered species, industrial pollution and climate change. The authors identify a range of problems in global idea of ‘sustainability’ and explore complexity of uncertainty. The second part reviews innovative approach that pretends to reconcile the needs of local communities with the protection of the natural world. (shrink)

Volumul ”Sustenabilitatea educației doctorale în economie și afaceri” valorifică ideile și cercetările doctoranzilor de la Universitatea “Alexandru Ioan Cuza” din Iași, școala doctorală de economie și administrarea afacerilor. Lucrările au fost prezentate, prin postere sau în plen, în conferința finală a proiectului SESYR, finanțat prin programul european Jean Monnet. Structurarea volumului în patru subcapitole generice are ca scop valorificarea domeniilor considerate prin filosofia proiectului:managementul proiectelor, antreprenoriat si angajabilitate pentru tinerii cercetători. O colecție de 24 de articole având 35 de autori, (...) oferă un mediu de dezbatere științifică provocatoare pentru publicul cititor din domeniul economic. Focalizarea subiectelor din articolele prezente pe motivațiile de cercetare ale doctoranzilor și postdoctoranzilor face ca acest volum să reprezinte un debut publicistic pentru unii autori iar pentru alții, o consolidare a vocației. Diseminarea pasiunilor în astfel de contexte consolidează colaborarea și deschiderea spre noi subiecte investigative. Volumul este destinat studenților, cercetătorilor și profesorilor și îl propunem ca reper bibliografic pentru dezvoltarea altor idei de cercetare și inovare în arealul nostru tematic. (shrink)

The concept of time discounting introduces weights on future goods to make these less valu- able. Famously, both the specic functional form of time discounting and its normative sta- tus are contested. To address these problems, this paper provides a measurement-theoretic framework of representation for time discounting. The general representation theorem char- acterises time discounting factors as ratio-scale representations of dierences in temporally extended prospects. This framework of representation is used to reconsider interpretations of time discounting factors such as time (...) preferences, uncertainty and preference change. It also allows to compare these interpretations with regards to their normative appeal, the kinds of reductionism regarding time and preference they imply and the specic functional form of time discounting they suggest. Farther, multiple-self interpretations of decision-makers become available, such that a time discounting factor represents the degree of connectedness between temporal selves in a person. (shrink)

After Marx, dissenting economics almost always used 'the labour theory' as a theory of value. This paper develops a modern treatment of the alternative labour theory of property that is essentially the property theoretic application of the juridical principle of responsibility: impute legal responsibility in accordance with who was in fact responsible. To understand descriptively how assets and liabilities are appropriated in normal production, a 'fundamental myth' needs to be cleared away, and then the market mechanism of appropriation can be (...) understood. On the normative side, neoclassical theory represents marginal productivity theory as showing that (a metaphorical version of) the imputation principle is satisfied ('people get what they produce') in competitive enterprises. Since that shows the moral commitment of neoclassical economics to the imputation principle, the labour theory of property is presented here as the actual non-metaphorical application of the imputation principle to property appropriation. The property-theoretic analysis at the firm level shows how the neoclassical (and much heterodox) analysis in terms of 'distributive shares' wholly misframed the basic questions. Finally, the paper shows how the imputation principle (modernised labour theory of property) is systematically violated in the present wage labour system of renting persons. The paper can be seen as taking up the recent challenge posed by Donald Katzner for a dialogue between neoclassical and heterodox microeconomics. (shrink)

Jamie Morgan's commentary (Morgan, 2016) on my paper 'The Labour Theory of Property and Marginal Productivity Theory' (Ellerman, 2016) and Ted Burczak's later comments (Burczak, 2016) raise a number of issues that surely will occur to other readers and that need to be addressed. I take the occasion to expand upon the arguments and to explore some related issues. In the narrative that unfolds, Frank H. Knight plays the role of the sophisticated defender of the system of renting, hiring and (...) employing human beings. He was quite clear that the social role of economics is to develop an idealised model, the competitive free enterprise model, and then to frame the normative discussion in terms of that model. Knight would agree with the whole thread of heterodox 'criticism' that the actual economy falls far short of the ideal – which is why I largely eschewed the descriptive shortcomings of ideal model as a purported model of the actual economy. Instead my paper focused on developing a critique of the key part of the idealised model, the marginal productivity theory of distribution under competitive conditions. That critique is based on the usual juridical principle of imputing legal responsibility in accordance with factual responsibility – the principle whose property-theoretic application is the modern treatment of the labour theory of property. Historically, heterodox economics faced a fork in the road in the 19th century: whether to criticise 'the system' by developing the inchoate 'labour theory' as a theory of value or a theory of property. Marx and much of left-wing economics took the labour-theory-of-value road, whereas my paper is part of a modern attempt – Thomas Hodgskin (1832) being an earlier attempt – to take the labour-theory-of-property road. As we will see, much of the debate still revolves around these two roads. Read David Ellerman's original paper "The Labour Theory of Property and Marginal Productivity Theory" › Read Jamie Morgan's commentary on David Ellerman's paper ›. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)