Tocqueville pessimistically predicted that liberty and equality would be incompatible ideas. Robert Dahl, author of the classic _A Preface to Democratic Theory,_ explores this alleged conflict, particularly in modern American society where differences in ownership and control of corporate enterprises create inequalities in resources among Americans that in turn generate inequality among them as citizens. Arguing that Americans have misconceived the relation between democracy, private property, and the economic order, the author contends that we can achieve a society of real (...) democracy and political equality without sacrificing liberty by extending democratic principles into the economic order. Although enterprise control by workers violates many conventional political and ideological assumptions of corporate capitalism as well as of state socialism. Dahl presents an empirically informed and philosophically acute defense of "workplace democracy." He argues, in the light of experiences here and abroad, that an economic system of worker-owned and worker-controlled enterprises could provide a much better foundation for democracy, political equality, and liberty than does our present system of corporate capitalism. (shrink)

This paper discusses recent attempts by economists to analyze institutional structure using individualist methodology. It is argued that developments in game theory, as well as advances in the analysis of transactions costs, have proved surprisingly fertile in yielding insights into the nature and structure of institutions. The example of the university is used to illustrate the ways in which the economic approach to institutions can be applied. In particular, the nature of academic contracts and the non?profit status of universities are (...) related to the literature on contractual hazards. Although methodologically very different from sociological or historical analysis of institutions, it is argued that the new institutional economics may provide a bridge permitting greater contact between hitherto almost entirely separate disciplines. (shrink)

In a series of important papers, G.A. Cohen has developed a forceful argument for the claim that workers are rendered unfree by capitalist institutions. His argument poses a powerful challenge to those who think that capitalist institutions best promote freedom. Yet, formidable as it is, Cohen's argument can be shown to be flawed at several crucial points. It is not one argument, but three at least, and one of the goals of my criticism of Cohen on this question is to (...) distinguish and assess the various separate lines of reasoning that together make up his case for the unfreedom under capitalism of workers as a class. Cohen argues of workers that they are rendered unfree by the institution of private property on which the capitalist system depends, that they suffer a form of collective unfreedom under capitalism, and that they are forced to sell their labor power under capitalism. (shrink)

There are two principal philosophical conceptions of socialism, corresponding to two interpretations of the notion of a rational society. The first conception corresponds to an instrumental view of social rationality. Captured by the image of socialism as “one big workshop,” the instrumental view holds that social ownership of the means of production is rational because it promotes the optimal development of the productive forces. Social ownership is optimal because it eliminates the costs of coordination imposed by the conduct of economic (...) activities in formally independent enterprises, and, more generally, overcomes fetters on development that result from the control of resources by individuals whose particular interests imperfectly correspond to a general interest in productive advance. (shrink)

Tocqueville pessimistically predicted that liberty and equality would be incompatible ideas. Robert Dahl, author of the classic _A Preface to Democratic Theory,_ explores this alleged conflict, particularly in modern American society where differences in ownership and control of corporate enterprises create inequalities in resources among Americans that in turn generate inequality among them as citizens. Arguing that Americans have misconceived the relation between democracy, private property, and the economic order, the author contends that we can achieve a society of real (...) democracy and political equality without sacrificing liberty by extending democratic principles into the economic order. Although enterprise control by workers violates many conventional political and ideological assumptions of corporate capitalism as well as of state socialism. Dahl presents an empirically informed and philosophically acute defense of "workplace democracy." He argues, in the light of experiences here and abroad, that an economic system of worker-owned and worker-controlled enterprises could provide a much better foundation for democracy, political equality, and liberty than does our present system of corporate capitalism. (shrink)

This is a systematic evaluation of the main arguments for and against the market as an instrument of social organization, balancing efficiency and justice. It links the distinctive approaches of philosophy and economics to this evaluation.

Introduction Marxism is a set of ideas from which sprang particular approaches to economics, sociology, anthropology, political theory, literature, art, ...