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)

The Pareto principle is a normative principle about preferences that advocates concordance with unanimous preference. However, people have perspectives not just preferences. Evaluating preferences...

How valuable is the market mechanism for practical morality? What is its moral standing? We can scarcely doubt that as individuals we do value tremendously the opportunity of using markets. Indeed, without access to markets most of us would perish, since we don't typically produce the things that we need to survive. If we could somehow survive without using markets at all, our quality of life would be rather abysmal. It is natural to feel that an institution that is so (...) crucial to our well-being must be valuable. And since moral evaluation can hardly be indifferent to our interests and their fulfillment, it might appear that there is nothing much to discuss here. The market's moral standing “has to be” high. (shrink)

Ever since its first publication in 1970, Amartya Sen's paper “The Impossibility of a Paretian Liberal” has served as the starting point for almost all discussions of liberty in social choice theory. However, a number of people, myself included, have argued that Sen's theorem rests on a misleading characterization of liberty . In a recent paper, addressed to a philosophical audience, Sen has provided a careful defence of his theorem against this charge. I shall argue that this defence does not (...) work. (shrink)

Sen's Liberal Paradox has received a good deal of attention in the literature. However, it is worth re-opening the discussion since the solutions offered so far have serious problems and since there is more to say about the nature of the problem displayed by the Liberal Paradox. I propose a new solution to the paradox in the following sense: First, I argue that its range of applicability is not very broad. Second, there is nothing paradoxical about a conflict of the (...) principles involved in the Liberal Paradox. (Nagel's thesis of the ``fragmentation of value'' is important to make this point.) Third, I make a recommendation about how to remove conflicts when they occur in a restricted class of cases. For the other cases, no recommendation of similar appeal is available. But in the light of the first point, the availability of a generally applicable recommendation was not to be expected. (shrink)

A claim that certain purely private matters should be beyond the reach of society's laws, moral rules, and other customs is central to the distinctive liberalism of John Stuart Mill. On Liberty, perhaps the most eloquent defense of individual liberty ever written, laments the hostility allegedly displayed in modern mass societies toward “the right of each individual to act [in private matters] as seems good to his judgement and inclinations”. In Mill's view, a free society must design its institutions with (...) due regard for what he terms “individuality.” That is, public authority, whether in the form of law, customary opinion, or economic power, must be self-limiting so that it does not interfere with the rights of individuals to choose as they like with respect to such private concerns as religious faith, reading materials, living companions, and consumption of drugs and alcohol. Individuals and voluntary groups should be permitted to do whatever they prefer within their private spheres even if everyone else in society dislikes what they do, is annoyed by them, and actually chooses not to be around them or to befriend them. (shrink)

In a recent discussion of Amartya Sen's concept of the capabilities of people for functioning in their society – and the idea of targeting people's functioning capabilities in evaluating the society – G. A. Cohen accuses Sen of espousing an inappropriate, ‘athletic’ image of the person (Cohen, 1993, pp. 24–5). The idea is that if Sen's formulations are to be taken at face value, then life is valuable only so far as people actively choose most facets of their existence: if (...) they fare well in the material stakes, for example, they must fare well as a result of active choice and effort, not because anyone else looks after them. ‘That’, says Cohen, ‘overestimates the place of freedom and activity in well-being’ (p. 25). (shrink)

Philip Pettit (2001) has suggested that there are parallels between his republican account of freedom and Amartya Sen's (1970) account of freedom as decisive preference. In this paper, I discuss these parallels from a social-choice-theoretic perspective. I sketch a formalization of republican freedom and argue that republican freedom is formally very similar to freedom as defined in Sen's “minimal liberalism” condition. In consequence, the republican account of freedom is vulnerable to a version of Sen's liberal paradox, an inconsistency between universal (...) domain, freedom, and the weak Pareto principle. I argue that some standard escape routes from the liberal paradox – those via domain restriction – are not easily available to the republican. I suggest that republicans need to take seriously the challenge of the impossibility of a Paretian republican. Footnotes1 I am grateful to Luc Bovens, Geoffrey Brennan, Keith Dowding, Philip Pettit, and Wlodek Rabinowicz for very helpful comments and discussion. (shrink)

John Stuart Mill provides a classic defense of individual and group rights to liberty with respect to purely private or self-regarding matters: The only part of the conduct of any one, for which he is amenable to society, is that which concerns others. In the part which merely concerns himself … directly, and in the first instance, … his independence is, of right, absolute.… From this liberty of each individual, follows the liberty, within the same limits, of combination among individuals; (...) freedom to unite, for any purpose not involving harm to others: the persons combining being supposed to be of full age, and not forced or deceived. (shrink)

Should social preferences conform to the principles of rationality we normally expect of individuals? Should they, for instance, conform to the consistency axioms of expected utility theory? This article considers one fragment of this question.

A group of economists has recently begun addressing questions at the intersection of ethics and economics. They are preparing new definitions of individual choice that combine self-interest and other-interest, new processes of interpersonal exchange that result in cooperation rather than conflict, and new measures of social well-being that include rights as well as outcomes. This article surveys that work, and suggests areas where conceptual inputs from business ethicists are clearly needed, and where multiple opportunities for interactive research are obviously present.

This is my argument for the claim that morality is very demanding indeed. In a nutshell: being consistent is harder than you think.

Economic approaches to both social evaluation and decision-making are typically Paretian or utilitarian in nature and so display commitments to both welfarism and consequentialism. The contrast between the economic approach and any rights-based social philosophy has spawned a large literature that may be divided into two branches. The first is concerned with the compatibility of rights and utilitarianism seen as independent moral forces. This branch of the literature may be characterized as an example of the broader debate between the teleological (...) and deontological approaches. The second is concerned with the possibility that substantial rights may be grounded in utilitarianism with the moral force of rights being derived from more basic commitments to welfarism and consequentialism. This branch of the literature may be characterized as an exploration of the flexibility of the teleological approach, and, in particular, its ability to give rise to views more normally associated with the deontological approach. This essay is concerned with the second branch of the literature. (shrink)

This paper discusses justice-constrained libertarian claims that were proposed as a way to circumvent the impossibility of the Paretian liberal. Since most of the results are negative in character, we suggest an alternative route: A requirement on the structure of individual orderings should be combined with the idea that under particular circumstances individual decisiveness should be controlled by higher-order principles.

Este artículo pone en cuestión la adecuación de los enfoques convencionales de la Calidadde Vida e intenta realizar una contribución al debate existente acerca de la revisión, integración o mejora de las métricas del bienestar tal como son usadas tradicionalmente en la bibliografía de indicadores estadísticos. Como una alternativa, este estudio basa sus principales supuestos en el Enfoque de la Capacidad de Amartya Sen. La principal hipótesis es que los análisis del bienestar que se basan en mediciones puramente monetarias o (...) que olvidan la importancia del valor intrínseco de la libertad impiden adquirir imágenes adecuadas de las auténticas condiciones de vida de la gente en las complejas sociedades contemporáneas y, de ese modo, perjudican el diseño de la política pública. Esta hipótesis es verificada y comprobada tanto a través de una discusión teórica como también por medio de un análisis empírico de datos estadísticos de la OCDE. Lo que nuestras conclusiones indican es la gran importancia de incrementar la libertad para conseguir mejores resultados sociales e individuales. (shrink)

This article is an axiomatic approach to the problem of ranking game forms in terms of the predictability they offer to individuals. Two criteria are proposed and characterized, the CardMin and the CardMax. Both compare game forms on the basis of the number of distinct outcomes that can result from the choice of a CardMin (resp. CardMax) strategy. The CardMin (resp. CardMax) strategy is defined as a strategy leading to the smallest (resp. highest) number of different outcomes. In both cases, (...) the lower these numbers the better the game form. (shrink)

Much of economics is built on the assumption that individuals are driven by self-interest and economic development is an outcome of the free play of such individuals. On the few occasions that the existence of altruism is recognized in economics, the tendency is to build this from the axiom of individual selfishness. The aim of this paper is to break from this tradition and to treat as a primitive that individuals are endowed with the ‘cooperative spirit’, which allows them to (...) work in their collective interest, even when that may not be in their self-interest. The paper tracks the interface between altruism and group identity. By using the basic structure of a Prisoner's Dilemma game among randomly picked individuals and building into it assumptions of general or in-group altruism, the paper demonstrates how our selfish rationality interacts with our innate sense of cooperation. The model is used to outline circumstances under which cooperation will occur and circumstances where it will break down. The paper also studies how sub-groups of a society can form cooperative blocks, whether to simply do better for themselves or exploit others. (shrink)

This article explores Amartya Sen’s understanding of freedom, and performs two central functions, one classificatory and the other substantive in nature. First, I situate his reflections within canonical understandings of liberty, finding an irreducible pluralism incorporating positive liberty in ‘capability’ alongside negative and republican liberty in ‘process’, which is subsequently unified in the notion of ‘comprehensive outcomes’. Secondly, I attempt to find a normative referent for the intrinsic value of choice, and thereby indirectly that of freedom, in his account. In (...) contrast to the liberal subjectivity one might – I believe, mistakenly – attribute to Sen’s deployment of neoclassical economic frameworks, I instead argue for a re-interpretation of his account, inspired by the sociological literature on embodiment. Here, an ‘encumbered’ subject must inherit and transcend a normative totality to become an agent in the fullest sense. (shrink)

In the emerging literature on judgment aggregation over logically connected proposi- tions, expert rights or liberal rights have not been investigated yet. A group making collective judgments may assign individual members or subgroups with expert know- ledge on, or particularly affected by, certain propositions the right to determine the collective judgment on those propositions. We identify a problem that generalizes Sen's 'liberal paradox'. Under plausible conditions, the assignment of rights to two or more individuals or subgroups is inconsistent with the (...) unanimity principle, whereby unanimously accepted propositions are collectively accepted. The inconsistency can be avoided if individual judgments or rights satisfy special conditions. (shrink)

Social choice theory is the study of collective decision processes and procedures. It is not a single theory, but a cluster of models and results concerning the aggregation of individual inputs (e.g., votes, preferences, judgments, welfare) into collective outputs (e.g., collective decisions, preferences, judgments, welfare). Central questions are: How can a group of individuals choose a winning outcome (e.g., policy, electoral candidate) from a given set of options? What are the properties of different voting systems? When is a voting system (...) democratic? How can a collective (e.g., electorate, legislature, collegial court, expert panel, or committee) arrive at coherent collective preferences or judgments on some issues, on the basis of its members' individual preferences or judgments? How can we rank different social alternatives in an order of social welfare? Social choice theorists study these questions not just by looking at examples, but by developing general models and proving theorems. (shrink)

Being autonomous depends on the kind of relations we enjoy in the different domains of our lives, but the impact of decision-making and the power exercise that takes place in the political sphere, makes political relations crucial to our development and enjoyment of autonomy. This dissertation develops a novel view of political participation by interrogating its connection to our personal autonomy. According to this view, our political relations are partially constitutive of our personal autonomy, which in other words means there (...) is a political aspect of our autonomy. The kind of political relations we should hold to fully enjoy our autonomy is what I call Relations of Mutual Recognition. It is the mutual recognition of each agent’s autonomous standing—translated into a proper distribution of political power— that will face dominating political relations. The basis for that domination comes from our democracies’ power imbalances that condition influence over political decision-making to each individual’s economic, social or cultural standing. Consequently, there are political conditions for our autonomy to thrive. Relations of Mutual Recognition require two main conditions: non-domination and control. I take these two neo-republican ideals and redefine them to shape what a proper distribution of political power amounts to. Political participation comes in precisely to identify a way to challenge power imbalances. Therefore, my definition of political participation, which I call Collective Self-Government, requires a particular sort of implementation. Accordingly, I suggest a deliberative and inclusive arrangement that involves direct and innovative forms of decision-making, and more importantly, grants relevant shares of authority to all actors, i.e., common citizens, legislators, technocrats, etcetera. This project could rightly belong to both a relational approach to autonomy and be labelled as a version of deliberative democracy. However, relational accounts focus on our social relations, whilst I claim that we cannot be “less” or non-autonomous in the political sphere and still enjoy an autonomous life. Likewise, the participatory focus—in the sense of inclusion of all actors—of this proposal more accurately turn it into either a participatory version of deliberative democracy or a deliberative version of participatory democracy. (shrink)