The 'Austrian' tradition is well-known for its definitive contributions to economics in the twentieth century. However, Austrian economics also offers an exciting research agenda outside the traditional boundaries of economics, especially in the management disciplines. This Element examines how Austrian ideas play a key role in expanding the understanding of fields like entrepreneurship, strategy, and organization. It focuses especially on the vital role that entrepreneurs play in guiding economic progress by shaping firms and their strategic behavior. In doing so, it (...) explains a wide range of contributions that Austrian economics makes to the understanding of key problems in management, while also highlighting many directions for future work in this inspiring tradition. (shrink)

As the transaction cost theory of the firm was taking shape in the 1970s, another important movement in economics was emerging: a revival of the ‘Austrian’ tradition in economic theory associated with such economists as Ludwig von Mises and F. A. Hayek . As Oliver Williamson has pointed out, Austrian economics is among the diverse sources for transaction cost economics. In particular, Williamson frequently cites Hayek , particularly Hayek’s emphasis on adaptation as a key problem of economic organisation . Following (...) Williamson’s lead, a reference to Hayek’s ‘The Use of Knowledge in Society’ has become almost mandatory in discussions of economic organisation . However, there are many other potential links between Austrian and transaction cost economics that have not been explored closely and exploited.This article argues that characteristically Austrian ideas about property, entrepreneurship, economic calculation, tacit knowledge, and the temporal structure of capital have important implications for theories of economic organisation, transaction cost economics in particular. Austrian economists have not, however, devoted substantial attention to the theory of the firm, preferring to focus on business-cycle theory, welfare economics, political economy, comparative economic systems, and other areas. Until recently the theory of the firm was an almost completely neglected area in Austrian economics, but over the last decade, a small Austrian literature on the firm has emerged. While these works cover a wide variety of theoretical and applied topics, their authors share the view that Austrian insights have something to offer students of firm organisation. (shrink)

Austrian economics focuses on markets but has much to say about organizations. In particular, Austrian insights on the structure of production, the heterogeneity and subjectivity of resources, the nature of uncertainty, the role of monetary calculation, and the function of the entrepreneur provide solid foundations for a distinctly Austrian theory of organizations. This chapter reviews these insights, discusses recent literature on Austrian economics and the theory of the firm, and suggests new directions for developing and extending an Austrian approach to (...) organizations. In doing so it answers the following questions: Why, do organizations, large and small, emerge and persist? How do they avoid the problem of economic calculation faced by socialist economies? Why do organizations take the shapes they do, why do their characteristics vary over time and across industries, and why do they succeed or fail? Are most organizations stable over time, or do organizations, like markets, adapt and learn? and How do entrepreneurs arrange assets and manage individuals within organizations? (shrink)

When we think of theories that attempt to root capitalism in nature, the one that comes most readily to mind is Social Darwinism. In this theory, nature - driven by Darwinian natural selection (the struggle for existence and the survival of the fittest) - is interpreted to imply, when applied to human activities, that extreme competition will allow the most "fit" competitors to rise to the top and to survive in this "struggle for existence," and this process of dog-eat-dog competition (...) leads to both material and social progress. Not only has this theory been shown to be seriously flawed, the putative social implications of Darwinian natural selection do not accord with the findings of contemporary neoDarwinists who maintain, for example, that the behavior of monkeys and apes reveals a blend of competition and cooperation and, generally, a close connection to human moral behavior. Adam Smith provides a more helpful view of the connection between nature and capitalism. He maintains that nature's wisdom, as seen in its harmony and balance, is displayed in economics and human nature. Competitive free enterprise, as a vehicle for exchange, functions within a cooperative context and exhibits virtues and values such as mutual help and benefit, trust, harmony, and friendship. I shall show that neoDarwinists agree with Smith's view that nature supports a connection between competition and cooperation, and they maintain that moral activity, rather than destructive dog-eat-dog competition, is necessary to achieve the goals of natural selection. (shrink)

In part 1 of the paper, I develop a Platonic business ethic, emphasizing Plato’s Republic. I approach business ethics from a virtue ethics position, and I attempt to show that a Platonic craftsmanship model infuses a corporation with a type of managerial wisdom and justice, molds temperate and courageous corporate characters, and entails a morally fine type of self-interest. I also show that it is basic to two influential management theories.In part 2, I use Amartya Sen’s Development as Freedom to (...) show that the craftsmanship model is central to the concept of development. This concept is important in ethical discussions of both globalization and transnational corporations. Thus, I attempt to globalize Platonic business ethics using a craftsmanship model.In my concluding remarks, I attempt to show that the Plato/Sen position on development can be illustrated by both American and non-American capitalist firms functioning in our globalized world. (shrink)

I discuss the characters Don Quixote and Sancho Panza and their relationship in order to understand better the place of idealistictheory and realistic practice in business ethics. The realism of Sancho Panza is required to make the idealism of Don Quixote effective.Indeed, the interaction and development of these characters can serve as a model for both the effective communication between andblending of the idealistic moral theoretician and the practical businessperson. Specifically, I argue that a quixotified Sancho Panza,as a combination of (...) theoretical idealism and practical realism, is necessary for managerial statesmanship. I first consider the positionthat this concept is unrealistic. In the final section, however, I show that a number of leadership and business theorists believe thatmanagerial statesmanship requires a quixotified Sancho Panza. I also consider the question, what helps to make a quixotic vision forbusiness ethical, and what is its content? (shrink)

In Section I, I criticize the view, implied by the concept of rational economic man, that feelings are inherently opposed to rationality. I attempt to show that emotions or feelings are essential to the proper functioning of reason, rational objectivity, and practical rationality or rational decision making. In addition, I argue that emotions can help to resolve certain ethical dilemmas. In Section II, I consider business writers who criticize business for overemphasizing the head at the expense of feelings or the (...) heart. In Section III, I discuss the connection between material self-interest (as manifested in trade) – a concept of rational economic man – and business virtues. (shrink)

Since its introduction, multivariate pattern analysis, or ‘neural decoding’, has transformed the field of cognitive neuroscience. Underlying its influence is a crucial inference, which we call the decoder’s dictum: if information can be decoded from patterns of neural activity, then this provides strong evidence about what information those patterns represent. Although the dictum is a widely held and well-motivated principle in decoding research, it has received scant philosophical attention. We critically evaluate the dictum, arguing that it is false: decodability is (...) a poor guide for revealing the content of neural representations. However, we also suggest how the dictum can be improved on, in order to better justify inferences about neural representation using MVPA. 1Introduction 2A Brief Primer on Neural Decoding: Methods, Application, and Interpretation 2.1What is multivariate pattern analysis? 2.2The informational benefits of multivariate pattern analysis 3Why the Decoder’s Dictum Is False 3.1We don’t know what information is decoded 3.2The theoretical basis for the dictum 3.3Undermining the theoretical basis 4Objections and Replies 4.1Does anyone really believe the dictum? 4.2Good decoding is not enough 4.3Predicting behaviour is not enough 5Moving beyond the Dictum 6Conclusion. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:PLATO'S PARMENIDES AND ST. THOMAS'S ANALYSIS OF GOD AS ONE AND TRINITY SHERWIN KLEIN Fairleigh Dickinson University Hackensack, New Jersey IN HIS CRITICISM of the Neopfatonic interpretation of the Parmenides, Cornford says, "The fanguage throughout is as dry and prosaic as a textbook on algebra; there is little here to suggest that the One has any religious significance as there is in the other case to suggest (...) that x, y, and z are a trinity of unknown gods." 1 I agree with Cornfo11d that the Neopl1 atoniJc interpreta.tion is very speculative and seriously flawed. Nonethe1ess, the "negative theology" these interpreters attribute to Plato is instruic1tive. More than this, it can be shown that opinions like Cornford's are, to say the least, unimaginative. I intend to est1 ablish, in the first and main part of this artide, the logical agreement between the PJatonic and Thomistic analyses of an absoJuteiy simple unity. The argument at Parmenides 137b-142a, Blato's analysis of the absoluteJy one, prov ]des a basis for determining what God, as an absolutdy simple unity, is not. By applying this 'argument in the Parmenides to St. Thomas's discussion of God as one, I shaill show that what appears to be " as dry and prosai:c as a textbook on algebra " has, contrary to Cornfo11d, " religious significance." In the second part of this article, I shall use the arguments at Parmenides 157b-159b and 159b-160b to determine what can 1 Plato and Parmenides: Parmenides' Way of Truth and Plato's Parmenides, trans. with introduction and commentary by Francis MacDonald Cornford (London: Routledge and Kegan Paul, 1939), p. 131. 229 230 SHERWIN KLEIN be predicated of God, if St. Thomas's analysis of the Trinity is to aoco:rd with the articles of faith (God as an abso1utely simple unity as weU as a Trinity). Once again, we shall see the ":religious significance" of Plato's analysis and the irony of Cornfo11d's suggestion about the meaninglessness of applying Plato's analysis to " a trinity of unknown gods." I We should first he clear about how St. Thomas uses the term "one" as applied to God. In Q. n, A. 1 of the Prima Pars (The Unity of God),2 he distinguishes between one as "the negation of division" and one as "the principle of number." The first sense, which he calls the transcendental sense, applies to God; in this sense the one is opposed to the many as the undivided is :to the divided. Human beings cannot know what God is, but we can determine what God is not, e.g., not-many, the transcendental sense of being absolutely simple. (The human intdlect can only know the composite or tha,t which pertains to the composite; it cannot know that which is abso1ut ~ly sample or undivided.) St. Thomas says, "He is supremely undivided inasmuch as He is divided neither actually nor potentially by any mode of division; since He is altogether simple." 3 If we :compare the analysis of God as absolutely one or simple with the first hypothesis of the one in the Parmen~des, i.e., if the one is one, what can be predicated of it, then we shall notice an important similarity. If the one is simply one, none of the categories which can determine the nature of the one are predicable of it. Similarly, God as absolutely one or simple cannot be understood in,a positive manner (His nature is incomprehensible). However, He can be understood negatively. And what we can say negatively about God parallels 2 References are to the Summa Theologica in Basic Writings of Saint Thomas Aqu-Ynas, ed. Anton C. Pegis, vol. I (New York: Random House, 1945). a ST, I, q. 11, a. 4, c.; Pegis, p. 90. PLATO AND AQUINAS 231 Plato's determination of what is not predicable of the one as simple. To show what God is not, we must negate what does not apply to Him; this reveals the simplicity of God. If the one is one (in St. Thomas's transcendenta.l sense of "one " as simple ), says Plato, it cannot be many and, therefor:e, cannot have... (shrink)

Since its introduction, multivariate pattern analysis, or ‘neural decoding’, has transformed the field of cognitive neuroscience. Underlying its influence is a crucial inference, which we call the decoder’s dictum: if information can be decoded from patterns of neural activity, then this provides strong evidence about what information those patterns represent. Although the dictum is a widely held and well-motivated principle in decoding research, it has received scant philosophical attention. We critically evaluate the dictum, arguing that it is false: decodability is (...) a poor guide for revealing the content of neural representations. However, we also suggest how the dictum can be improved on, in order to better justify inferences about neural representation using MVPA. (shrink)

I distinguish between two problems related to business ethics. (1) How can business ethics help morally conscientious business people to resolve moral problems in business? (2) Given the widespread belief that immorality, or at least amorality, is too prevalent in business, how can one discover both the sources of business amorality and immorality and make business as morally respectable an institution as possible? Philosophers who have concerned themselves with business ethics have emphasized (1), i.e., they consider the normative ethical principles (...) applicable to solving moral questions in business. Although some benefit can be derived from this approach, there are a number of problems with this position. I then argue that, in considering (2), we ought to analyze business life styles (ideals) that have determined the character of American business people, and show both their negative and positive moral consequences. This analysis reveals the morality, or lack of it, in modern American business, possible changes in business morality, and possible ways of developing a desirable and viable business ethic. In a sketchy way, I show how this project can be developed. (shrink)

The medium‐independence of computational descriptions has shaped common conceptions of computational explanation. So long as our goal is to explain how a system successfully carries out its computations, then we only need to describe the abstract series of operations that achieve the desired input–output mapping, however they may be implemented. It is argued that this abstract conception of computational explanation cannot be applied to so‐called real‐time computing systems, in which meeting temporal deadlines imposed by the systems with which a device (...) interfaces are constitutive of the computing tasks that a device performs. Instead, real‐time computing reveals the need for alternative conceptions of computational explanation, as well as computational implementation, that eschew medium‐independence. (shrink)

In this paper, I argue that an Aristotelian approach to business ethics would place theory and practice in business ethics in proper balance. I attempt to show this in two parts. In part one, I suggest that Aristotle’s balanced view of the relation between theory and practice in political philosophy can be applied to corporate life;Aristotle’s sophisticated ethical and political inquiries should help advocates of corporate culture to construct theories that are theoretically, practically, and ethically sound. In part two, I (...) argue that theory and practice are kept in proper balance in Aristotle’s discussion of phronesis or practical wisdom; therefore, Aristotelian phronesis should help to illuminate morally intelligent business conduct. (shrink)

I explore certain interconnections and commonalities among technology, corporations, and contemporary globalization in order to best understand the dangerous ethical and social consequences that accrue from them. I begin by discussing the notion of means becoming ends. Technology as means and corporate instrumental values tend to become endsin-themselves. I then suggest that technologist’s and corporate manager’s quantitative methods are ill-equipped to deal with questions of intrinsic value or ends, which are qualitative. Moreover, “development,” a key term in globalization discussions, is (...) often defined quantitatively (in economic terms) rather than qualitatively. I argue that this view is too narrow. Next, I discuss limiting autonomy as an important issue common to technology, corporations, and contemporary globalization. Material progress as a goal common to technology, corporations, and contemporary globalization is also considered. Technological mistakes and a neo-liberal, laissez-faire economy are said to be self-corrective, and this feature is used to support the notion of material progress. I argue that this has proved to be too optimistic. In the last section, I use certain contemporary leadership theorists to criticizeKenneth Galbraith’s and Peter Drucker’s views on corporate governance by technocratic specialists. I also discuss recent developments of the concept of technological assessment and related work by TU Delft researchers. (shrink)

The purpose of this dissertation is to develop and defend a method of elimination for determining justifiable basic normative ethical principles. The method is developed by considering Books I and X of Aristotle's Nicomachean Ethics and Plato's Meno. The method requires consideration on two different "levels." Aristotle and Plato use regulative endoxic premises as the evaluative criteria of the method. Such premises, which ideally are based upon universal agreement, guide an inquiry of our sort, i.e., determine the elimination or nonelimination (...) of the alternatives. Concerning the second "level," an adequate list of alternative possible solutions should be presented, and some principle or technique should be provided for determining such an adequate list. On the basis of the above premises, alternatives are evaluated in such a way that lack of accordance with any one of the relevant premises--assuming that there is more than one--is sufficient for the elimination of an alternative. The only alternative that is not eliminated by any of the premises provides the solution to the problem. The Aristotle chapter shows how regulative endoxic premises can be used, in an "ideal" sense, for choosing between two or more alternatives that generally accord with the premises. ;Our discussion of Aristotle and Plato shows that they do use this method and illustrates, in some detail, both how the method is used and specific variations of it. Our philosophers use different principles or techniques for determining the plausible alternatives. Aristotle chooses alternatives which are endoxic opinions. Plato uses the opinions of interlocutors, which are often endoxic, but he basically relies on a type of shared or cooperative rational inquiry to determine increasingly more adequate opinions, and, consequently, the plausible opinions that ought to be considered. On this "level," we attempt to show that the Platonic technique is more adequate than the Aristotelian procedure. ;Probably the most controversial feature of our method is the employment of regulative endoxic premises. Our final chapter is concerned with further clarification and defense of these premises. We attempt to show that regulative endoxic premises are different from and more adequate than the more objectionable opinions called conventionally moral opinions. We, then, attempt to provide a justifiable account of the differential value, in our method, in the evidential force of regulative endoxic premises and substantive endoxic opinions, and attempt to determine how adequate regulative endoxic premises relative to a specific inquiry can be identified. We argue that these premises provide the conditions necessary for the possibility of successful inquiry within, what I call, the ordinary ethical standpoint, and that the basic presupposition of this standpoint is an acceptable assumption. ;Two alternatives to our position concerning the defense of regulative endoxic premises are considered: They are intuitively self-evident. They are analytic truths based upon an appeal to ordinary usage. is readily seen to be objectionable. is, apparently, the position of Hare. We argue that Hare's position, which maintains that the probative force of regulative endoxic premises is based upon their analytic nature, is quite debatable, and does not, therefore, provide a viable alternative to our position. We also object to Hare's view of his regulative endoxa, viz., universalizability and prescriptivity. (shrink)

Plato's paradigm for statesmanship in the Statesman, the weaving of temperate and courageous properties, provides the contemporary business ethics theorist with an aid for determining certain problems and solutions with regard to business leadership. The history of American business values manifests the destructive, and especially unethical, effects of deviating from this paradigm by over-emphasizing one or the other of the above types of qualities. However, with the aid of Plato's model for leadership in the Statesman and suggestions from Peters and (...) Waterman's In Search of Excellence, progress can be made towards constructing an adequate model for corporate leadership, especially from an ethical standpoint. (shrink)

Book reviewed in this article: How We Die. By Sherwin B. Nuland. New York: Alfred A. Knopf.