Rationality, Markets and Morals

Studies at the Intersection of Philosophy and Economics

 

Rationality, Markets, and Morals: RMM Band 0 (2009)

The advent of labo­ra­to­ry expe­ri­ments in eco­no­mics over the last few deca­des has pro­du­ced an enorm­ous lite­ra­tu­re devo­ted to describ­ing, test­ing and mode­ling eco­no­mic and social beha­vi­or. Mea­su­red by publi­ca­ti­ons and cita­ti­ons, the deve­lo­p­ment of social pre­fe­rence models to cap­tu­re decis­i­ons moti­va­ted by fair­ness and other social cri­te­ria, is one of the suc­cess sto­ries in this lite­ra­tu­re. But with this suc­cess, and may­be even becau­se of it, con­tro­ver­sies have ari­sen about what the models can and can­not do. In this note, we com­ment on some of the­se deba­tes. Our main the­me is that descrip­ti­ve models of beha­vi­or should be jud­ged with respect to their useful­ness. This is often negle­c­ted, part­ly becau­se the­re are no accept­ed mea­su­res and tests for the useful­ness of a model, while stan­dard pro­ce­du­res to test whe­ther a model is true are rea­di­ly available. A model that does not cap­tu­re a grain of truth‘ is unli­kely to be useful; howe­ver, the rela­ti­onship is not mono­to­nic in that a truer‘ model is not neces­s­a­ri­ly a more useful model.
It is assu­med that medi­cal gui­de­lines spe­ci­fy the appro­pria­te amount of a divi­si­ble good which each indi­vi­du­al should recei­ve. Indi­vi­du­al requi­re­ments and pro­ba­bi­li­ties that the tre­at­ment is suc­cessful if an appro­pria­te amount is recei­ved dif­fer. The same appli­es to the suc­cess pro­ba­bi­li­ties if indi­vi­du­als are ina­de­qua­te­ly trea­ted. If sup­p­ly is insuf­fi­ci­ent to ser­ve all with appro­pria­te amounts an allo­ca­ti­on decis­i­on is neces­sa­ry. We defi­ne pro­ba­bi­li­stic allo­ca­ti­on rules that allo­ca­te chan­ces of suc­cessful tre­at­ment to all indi­vi­du­als. We ana­ly­se a spe­ci­fic ran­dom allo­ca­ti­on rule that assigns maxi­mal equal gains of chan­ces. We cha­rac­te­ri­ze the equal gain rule axiomatically.
Awards are pre­va­lent in all socie­ties and at all times. So far, howe­ver, they have escaped the atten­ti­on of eco­no­mists. This paper pres­ents a first ana­ly­sis of awards, distin­gu­is­hing them from purely mone­ta­ry forms of rewards. Addi­tio­nal­ly, popu­lar noti­ons about the use and pre­va­lence of awards are addres­sed with descrip­ti­ve sta­tis­tics from the Inter­na­tio­nal Who’s Who.
Bygo­nes are bygo­nes‘ might seem to be an ana­ly­tic truth, lack­ing any sub­stan­ti­ve con­tent. Yet, eco­no­mists think that, when they sta­te that bygo­nes are bygo­nes, they are asser­ting some­thing inte­res­t­ing and important. Fur­ther­mo­re, others would argue that the state­ment bygo­nes are bygo­nes‘, when read appro­pria­te­ly, is fal­se. By inter­ro­ga­ting the state­ment ‚bygo­nes are bygo­nes‘ we iden­ti­fy a num­ber of key issues rela­ting to ratio­nal choice theo­ry and the tre­at­ment of inten­ti­ons, habits and pro­mi­ses. The more phi­lo­so­phi­cal dis­cus­sion of the things that eco­no­mists say (and what they might mean) is par­ti­cu­lar­ly appro­pria­te in hono­ring Hart­mut Kli­emt, much of who­se work has brought phi­lo­so­phy and eco­no­mics into clo­ser proximity.
Why have eco­no­mists had so litt­le meaningful to say about the 2008 cri­ses? Whe­re and when did the ‚sci­ence‘ get off the track? Can any­thing be done to res­to­re respec­ta­bi­li­ty to Eco­no­mics as a useful area of inquiry? This short essay exami­nes the­se questions.
The artic­le descri­bes a radi­cal­ly sim­pli­fy­ing model of opi­ni­on for­ma­ti­on pro­ces­ses. The model abs­tracts away almost ever­y­thing. A very com­mon reac­tion to such an approach is the objec­tion that important fac­tors are not included. The artic­le anti­ci­pa­tes ten objec­tions of this type and tri­es to show how to cope with them wit­hout giving up the radi­cal­ly sim­pli­fy­ing approach. The stra­te­gies that we use can be sum­ma­ri­zed to a cer­tain heu­ristics. Fol­lo­wing the prin­ci­ples of this heu­ristics will often allow at least a par­ti­al qua­li­ta­ti­ve under­stan­ding of real world phe­no­me­na. In many are­as we pro­ba­b­ly can­not hope for more.
In con­trast to tra­di­tio­nal phi­lo­so­phy, Haber­mas does not view his ‘post­me­ta­phy­si­cal thought’ as a con­cep­ti­on of rea­li­ty that claims to be true. Actual­ly, howe­ver, his ‘post­me­ta­phy­si­cal thought’ is a meta­phy­si­cal dua­lism, which stands in oppo­si­ti­on to the meta­phy­si­cal natu­ra­lism pro­po­sed by other con­tem­po­ra­ry phi­lo­so­phers. In a spe­ci­fic way, he draws upon the Kan­ti­an idea of the con­sti­tu­ti­ve func­tion of reason. He holds, as other con­s­truc­ti­vists, an idea­li­stic meta­phy­sics that leads him to the con­s­truc­tion of an epis­te­mic dua­lism, con­tras­ting the objec­ti­ve world of the natu­ral sci­en­ces with the ‘Lebens­welt’. It turns out that he is unable to sol­ve the pro­blems con­nec­ted with this view. Meta­phy­si­cal rea­lism, which avo­ids the­se pro­blems, is rejec­ted by him. His ‘post­me­ta­phy­si­cal thought’, Haber­mas tells us, does not pre­su­me to deci­de what is reasonable or not in reli­gious tea­chings. The core of reli­gious expe­ri­ence, he sug­gests, is ‘opaque’ and the­r­e­fo­re immu­ne to cri­ti­cism. Faith and know­ledge are, as it seems, incom­men­sura­ble, so that a reasonable cri­tique of reli­gi­on is impos­si­ble. Thus, he cons­ents to an arbi­tra­ry rest­ric­tion of the use of reason, as pro­po­sed also by Joseph Ratzinger.
The aim of this paper is to con­tri­bu­te to ans­we­ring the con­cep­tu­al ques­ti­on whe­ther the­re can be weak-wil­led non-human ani­mals. After some preli­mi­na­ry cla­ri­fi­ca­ti­ons con­cer­ning the phe­no­me­non of weak­ne­ss of will three dif­fe­rent accounts are exami­ned for the con­di­ti­ons a being has to ful­fill in order to be in a posi­ti­on to dis­play weak­ne­ss of will. It is argued that the­se con­di­ti­ons are very strong and that the­re are good reasons to assu­me that, e.g., only lan­guage users can be weak-wil­led. This is taken as an inde­pen­dent argu­ment for Davidson’s the­sis that non-human ani­mals which are not lan­guage users can­not act intentionally.
An indi­vi­dua­li­stic social onto­lo­gy attri­bu­tes men­tal sta­tes mere­ly to indi­vi­du­als, and denies the exis­tence of coll­ec­ti­ve atti­tu­des such as we-inten­ti­ons. Fur­ther­mo­re, if coll­ec­ti­ves can­not be bea­rers of minds, then coll­ec­ti­ve men­tal sta­tes can­not ser­ve as expl­ana­to­ry fac­tors. In my paper, I first show that we-inten­ti­ons do ser­ve con­sidera­ble expl­ana­to­ry pur­po­ses within deve­lo­p­men­tal psy­cho­lo­gy. I then pro­po­se an account of wein­ten­ti­ons as com­ple­xes of inten­ti­ons of dif­fe­rent indi­vi­du­als. The­se inten­ti­ons are of a distinct kind: de-re-inten­ti­ons, groun­ded in exter­nal objects in a spe­ci­fic situa­ti­on. This groun­ding is achie­ved by embo­di­ed cogni­ti­on, through appro­pria­te sen­so-moto­ric acti­vi­ties. I con­clude that my account of we-inten­ti­ons is com­pa­ti­ble with an indi­vi­dua­li­stic social ontology.
A basic con­vic­tion in moral non-cogni­ti­vism is: only hypo­the­ti­cal norms may be jus­ti­fied. Hart­mut Kli­emt argues for a mode­ra­te vari­ant: the­re are only hypo­the­ti­cal jus­ti­fi­ca­ti­ons of norms whe­ther the norms are hypo­the­ti­cal or cate­go­ri­cal in kind. In this paper the con­cept of ‚hypo­the­ti­cal jus­ti­fi­ca­ti­on‘ is ana­ly­zed. It is argued that hypo­the­ti­cal jus­ti­fi­ca­ti­ons are not of the kind that we should look for in nor­ma­ti­ve ethics.

Journal Information

RMM is an interdisciplinary publication focusing on issues of rationality, market mechanisms, and the experimental method of reasoning into moral subjects. It provides a forum for dialogue between philosophy, economics, and related disciplines, encouraging critical reflection on the foundations and implications of economic processes.

Search Articles

Volumes

Rationality, Markets, and Morals: RMM Band 0 (2009)

Rationality, Markets, and Morals: RMM Band 1 (2010)

Rationality, Markets, and Morals: RMM Band 2 (2011)

Rationality, Markets, and Morals: RMM Band 3 (2012)

Rationality, Markets, and Morals: RMM Band 4 (2013)

Rationality, Markets, and Morals: RMM Band 5 (2014)

Rationality, Markets, and Morals: RMM Band 6 (2015)