It has long been an interest of researchers in economics, sociology, organization studies, and economic geography to understand how firms innovate. Most recently, this interest has begun to examine the micro-processes of work and organization that sustain social creativity, emphasizing the learning and knowing through action when social actors and technologies come together in 'communities of practice'; everyday interactions of common purpose and mutual obligation. These communities are said to spark both incremental and radical innovation. -/- In the book, leading (...) international scholars critically examine the concept of communities of practice and its applications in different spatial, organizational, and creative settings. Chapters examine the development of the concept, the link between situated practice and different types of creative outcome, the interface between spatial and relational proximity, and the organizational demands of learning and knowing through communities of practice. More widely, the chapters examine the compatibility between markets, knowledge capitalism, and community; seemingly in conflict with each other, but discursively not. -/- Exploring the frontiers of current understanding of situated knowing and learning, this book is for all those interested in the economic sociology of organizational creativity and knowledge capitalism in general. (shrink)

Critics of commercial societies complain that the free-market system of property rights and freedom of contract tends to commodify relationships, thus eroding the bonds of personal and civic friendship. I argue that this thesis rests on a misunderstanding of both markets and friendship. As voluntary, reciprocal relationships, market relationships and friendship share important properties. Like all relations and activities that exercise important human capacities and play an important role in a meaningful life, market relations and activities are essentially structured and (...) supported by ethical norms and, in turn, support these norms. The so-called norms of the market, such as instrumentality and fungibility, come in varying degrees and characterize not only market, but also nonmarket, relationships, including friendship. Furthermore, although market relationships are primarily instrumental, the individuals involved are not. The virtues of markets have their counterparts in friendship, as do their vices. For these and other reasons, market societies are not only not inimical to friendship, they create a more secure matrix for civic and personal friendship, as well as for other important values such as art, science, or philosophy, than any other developed form of society. Key Words: commercial societies • friendship • moral norms • virtues • vices. (shrink)

In this article I seek to say what it is for something to count as a neglected disease. I argue that neglect should be defined in terms of efforts at prevention, mitigation and cure, and not solely in terms of research dollars per disability-adjusted life-year. I further argue that the trend towards multifactorialism and risk factor thinking in modern epidemiology has lent credibility to the erroneous view that the primary problem with neglected diseases is a lack of research. A more (...) restrictive contrastive model of disease is endorsed as better suited to the definition of neglected disease. (shrink)

Cap-and-trade systems for greenhouse gas emissions are an important part of the climate change policies of the EU, Japan, New Zealand, among others, as well as China (soon). However, concerns have been raised on a variety of ethical grounds about the use of markets to reduce emissions. In this paper we examine three types of concern. The first holds that emissions trading schemes are 'unethical'. We examine five ethical objections. These objections hold that emissions trading is unethical because it: involves (...) owning what should not be owned (objection 1), involves alienating responsibilities that should not be alienated (objection 2), necessarily worsens the condition of the vulnerable (objection 3), puts a price on the natural world (objection 4), and converts what ought to be a 'fine' into a 'fee' (objection 5). We find all five ethical objections unpersuasive. We then turn to consider a second kind of objection - namely that emissions trading schemes involve an unjust distribution of burdens and benefits. Finally, we consider the arguments adduced by those who question the effectiveness of emissions trading in reducing emissions. We conclude that only the objections based on distributional justice can be sustained. This points to reform of the carbon market system, rather than its elimination. (shrink)

Abstract This has been an unusually productive exchange. My critics largely accept my main theoretical claims about economic calculation and socialism. They have also started to do what advocates of the Misesian view should have been doing for decades: offer empirical evidence that that the calculation problem is serious. While I continue to believe that incentive problems explain most of the failures of socialism, I am slightly less confident than I was before. Fortunately, there are many unexploited sources of information (...) to help resolve the issue. (shrink)

Markets, law, and regulation are intimately intertwined. Thus, recent studies (by Morton Keller and Donald McCloskey et al.) of the intersection between public policy and the economy are both necessary and welcome. But the absence in these works of a nuanced conceptualization of the critical, constructive role of civil authority in the creation and maintenance of open, competitive markets, and the virtual absence of a concern for and understanding of the engines of real economic growth, results in scholarship that only (...) weakly articulates the profound linkage between civil authority, open markets, and economic growth. (shrink)

This paper argues that Rawls’ principles of justice provide a normative foundation for stakeholder theory. The principles articulate (at an abstract level) citizens’ rights; these rights create interests across all aspects of society, including in the space of economic activity; and therefore, stakeholders – as citizens – have legitimate interests in the space of economic activity. This approach to stakeholder theory suggests a political interpretation of Boatright’s Moral Market approach, one that emphasizes the rights/place of citizens. And this approach to (...) stakeholder theory – in terms of citizens – raises a further question, what rights and obligations do economic agents have, beyond those attached to their roles as citizens? Rawls would reject additional rights and obligations of this sort for two reasons, one tied to freedom and one tied to pluralism. Rawls’ work therefore presses us to re-conceptualize the place of ethical claims in the economic context. (shrink)

I offer consequentialist and deontological arguments for a competitive market in human organs, from live as well as dead donors. I consider the objections that a market in organs will frustrate altruism, coerce the desperate, expose under-informed agents to unacceptable risks, exacerbate inequality, degrade those who participate in it, involve a kind of slavery, impose invidious costs, and impair third-party choice sets. I show that each of these objections is without merit and that, in consequence, the opposition to markets in (...) organs is an untenable endorsement of death, suffering and the suppression of freedom. (shrink)

The primary aim of the text is to introduce the reader to the relationship between economics and ethics and to the application of economic ethics in the evaluation of the market. The reader will gain insight into: * The ethical and methodological strategy of economics and criticism of the core assumptions that underpin the economic defense of free market operation. * The characteristics of different ethical theories (utilitarianism, duty and rights ethics, justice and virtue ethics) that can be used to (...) evaluate the free market. * How to apply economics in conjunction with ethical theories to evaluate economic trends and policies that promote the free operation of the market and are subject to public debate. These insights will help to develop the reasoning and analytical skills needed to criticize economic analysis as well as to apply ethical concepts to moral issues in economic policy. (shrink)

Increasingly in the modern world, incentives are becoming the tool we reach for when we wish to bring about change. In government, in education, in health care, between and within institutions of all sorts, incentives are offered to steer people's choices in certain directions. But despite the increasing interest in ethics and economics, the ethics of the use of incentives has raised very little concern. From a certain point of view, this is not surprising. When incentives are viewed from the (...) perspective of market economics, they appear to be entirely unproblematic. An incentive is an offer of something of value, sometimes with a cash equivalent and sometimes not, meant to influence the payoff structure of a utility calculation so as to alter a person's course of action. In other words, the person offering the incentive means to make one choice more attractive to the person responding to the incentive than any other alternative. Both parties stand to gain from the resulting choice. In effect, it is a form of trade, and as such, it meets certain ethical requirements by definition. A trade involves voluntary action by all parties concerned to bring about a result that is beneficial to all parties concerned. If these conditions were not met, the trade would simply not occur. And as inducements in a voluntary transaction, incentives certainly have the moral high ground over coercion as an alternative. (shrink)

This article challenges the traditional argument for the state that holds that because the market is unable to supply the rule-making, adjudicative, and enforcement services that are essential to life in society, the state must, and hence is morally justified. The author argues that the market's inability to supply these basic services proves only that the state must ensure that they are supplied, not that it must supply them itself. This implies that the traditional concept of the minimal state as (...) one that supplies only these basic services is flawed. The `remedial state' (one that regulates the private provision of these services) is actually the minimal state. Key Words: anarchy • libertarianism • minimal state • political obligation • protective agency • public goods. (shrink)

Markets are central institutions in societies such as ours, and it seems appropriate to ask whether markets treat individuals justly or unjustly and whether choices individuals make concerning their market behavior are just or unjust. After all, markets influence most important features of our lives from the environment in which we live to the ways in which we find pleasure and fulfillment. Within market life we collectively determine the shape of human existence.<1>.

This paper argues that a certain kind of alienation from labour can be analyzed and explained in the theoretical framework that is dominant in current economics. Given a neoclassical model of a labour market, the intrinsic value that different kinds of labour may have for people can be represented as a source of utility (in the technical sense). It can then be shown that in capitalist economies, basing one’s supply decisions on this intrinsic value is predictably costly. So in the (...) long run, rational agents can be – and will be – expected to make their labour supply decisions based only on considerations of income and leisure time. In the resulting picture, rational agents are indifferent with regard to different qualitatively specific kinds of labour. I draw on the theory of efficiency wages to show that this picture lies at the root of contemporary problems like involuntary unemployment and injustice. (shrink)

The alliance of pure market economies with democratic polities has traditionally been a problematic one. It is argued that orthodox theoretical conceptualizations of market behaviour and the application of such theory to our communal lives have entrenched an incoherent alliance. In particular, the reductive mechanism characteristic of both neo-classical economic theory and its deployment in our socio-economic order has severely undermined the telic agency required for the autonomy or self-rule definitive of an authentic democratic order. Such reduction is observed to (...) function through the disabling of the cognitive capacity of consumers and by disempowering the agency of workers such that coercion is misconceived as freely agreed contract. (shrink)

Geographic Indications (GIs) are a form of trademark protection afforded to products that are historically the product of a particular place and production process by restricting use of the name to products that actually come from the place in question; “Champagne” can only come from that region of France, for example. GIs are often proposed as a way to protect indigenous cultural products from Western appropriation: a global GI regime would ensure that “Mysore” silk sarees were produced in India, and (...) thus ensure that the traditional producers of these goods would be the beneficiaries of purchases of them. Such a strategy would return both economic value and cultural recognition to the producers of these goods. -/- In this paper, I argue that the move to branding culture puts the source indicating function of trademarks radically into question, thereby increasing the risks associated with an expansion of GIs. Increasingly, consumers consume brands not for the products they designate, but for the affiliation with the brands themselves. Since the benefits of source protection to indigenous communities depend upon a consumer’s desire to have a product actually from that source community, if consumers care more about the brand designation than the actual source, those benefits will be more difficult to realize. Instead, the logic of trademarks in late capitalism will tend to push geographic source protections toward becoming de facto IP rights in culture. -/- After an introductory section, the second section of the paper theorizes trademarks as part of a process of commodification in order to suggest that the logic of the process leads to an emphasis on brands themselves as sources of value, rather than the products to which they refer. The third section uses this theoretical frame to discuss the risk that geographic source protections will tend to reduce cultural diversity, both by tending to promote exoticized images of cultures, and by increasing the importance of standardization. The fourth section situates these concerns in the larger context of David Harvey’s work on capitalist accumulation, in order to underscore how the reification of culture discussed in the third section can be used as a tool by cultural elites to suppress dissent and treat the source protection as intellectual property rights in culture. The concluding section offers some policy suggestions for ways to ameliorate these risks. (shrink)

An exposition of Karl Marx’s argument in the Grundrisse for the logical development of money, this essay is divided into three parts. Since Marx is concerned to distinguish himself and his method from that of the seventeenth century political economists, I begin my paper with a brief reflection on “the scientifically correct method” or the “theoretical method” (Grundrisse 101 and 102). The second part of this paper considers how Marx justifies beginning his reflection with the concept of production in general. (...) To understand the importance that Marx attributes to production, one must also appreciate the way in which distribution, exchange, and consumption belong to the sphere of production. In the remaining pages of this section of my paper, then, I attempt to reconstruct Marx’s argument for the way in which these concepts (distribution, exchange, and consumption) are to be understood in relation to the sphere of production. (shrink)

"Capital is moved as much and as little by the degradation and final depopulation of the human race, as by the probable fall of the earth into the sun. Apres moi le deluge! is the watchword of every capitalist and of every capitalist nation" (Marx, CAPITAL Vol 1, 380-381).

I argue that women in traditional marriages are a vulnerable source for kidneys and this vulnerability gives rise to exploitative donation arrangements made within families. In so doing, I critique Alan Wertheimer’s account of the impact that emotional closeness between participants in an agreement has on the wrongfulness of exploitation. I propose a regulated market scheme that is not only less exploitative than our current donation scheme, but also resolves a variety of other moral problems that typically arise in real (...) and imagined kidney sale scenarios, problems that render markets “noxious,” according to Debra Satz. (shrink)

The version of the invisible hand argument in Adam Smith's Theory of Moral Sentiments differs in important respects from the version in The Wealth of Nations. Both are different, in turn, from the version invoked by Milton Friedman in Free to Choose. However, all three have a common structure. Attention to this structure can help sharpen our sense of their essential thrust by highlighting the questions (about the nature of economic motivation, the structure of markets, and conceptions of the public (...) interest) to which answers of certain kinds would have to be available for any of the versions to succeed. (shrink)

I examine John Rawls' objection to libertarianism that it permits economic shares to be distributed in a morally arbitrary way. This argument was dropped largely for two reasons. First, talk of "arbitrariness" has been vague and associated with implausible views about moral desert, collective assets, and noumenal selves. Second, several criticisms which Robert Nozick made 25 years ago have gone unanswered. In this essay, I reconstruct the arbitrariness argument, giving it a new, Kantian interpretation, and I show that the new (...) version is intuitively plausible and avoids Nozick's major objections. (shrink)

There are strong Lockean considerations that count in favor of a global basic income program. This paper articulates a conception of equal share left-libertarianism that is supported by the rights of full self-ownership and world-ownership. It is argued that an appropriately constructed global basic income program would be a key institution for promoting the rights of full self-ownership and world-ownership.

The philosophical tradition of liberal political thought has come to see tolerance as a crucial element of a liberal political order. However, while much has been made of the value of toleration, little work has been done on individual-level motivations for tolerant behavior. In this article, we seek to develop an account of the rational motivations for toleration and of where the limits of toleration lie. We first present a very simple model of rational motivations for toleration. Key to this (...) model is an application of David Ricardo’s model of trade to thinking about toleration. This model supports the claim that we always have reasons to be as tolerant as possible. We then explore why we do not always see tolerant attitudes in the actual world, and point to some potential preconditions for toleration that the initial model does not capture. Subsequently, we examine a more detailed model that allows us to investigate more carefully the conditions under which tolerant behavior can be rewarded. We conclude by arguing that a consideration of self-interested motivations for toleration is essential to the success of a robust theory of toleration for a diverse society, but that even this approach has its limitations. (shrink)

According to an often repeated definition, economics is the science of individual choices and their consequences. The emphasis on choice is often used – implicitly or explicitly – to mark a contrast between markets and the state: While the price mechanism in well-functioning markets preserves freedom of choice and still efficiently coordinates individual actions, the state has to rely to some degree on coercion to coordinate individual actions. Since coercion should not be used arbitrarily, coordination by the state needs to (...) be legitimized by the consent of its citizens. The emphasis in economic theory on freedom of choice in the market sphere suggests that legitimization in the market sphere is “automatic” and that markets can thus avoid the typical legitimization problem of the state. In this paper, I shall question the alleged dichotomy between legitimization in the market and in the state. I shall argue that it is the result of a conflation of choice and consent in economics and show how an independent concept of consent makes the need for legitimization of market transactions visible. Footnotes1 For helpful comments and suggestions I am most grateful to Marc Fleurbaey, Alain Marciano, Herlinde Pauer-Studer, Thomas Pogge, Hans Bernhard Schmid, to seminar or conference participants in Aix-Marseille, Tutzing, Paris, and Amsterdam, and to two anonymous referees. (shrink)

Differences in socioeconomic and infrastructural elements among nations, differing conceptions about childhood, and the failure to distinguish between child work and child labor render a simple ban on child labor abroad idealistic and impractical.

This paper analyzes the proposed use of combinatorial derivatives markets for event prediction, especially for catastrophic events such as terrorism, war, or political assasination. Following a presentation of the philosophical principles underlying these politico-economic tools, I examine case studies (U.S. DoD proposals) that evaluate their advantages and disadvantages in terms of both efficacy and moral considerations. I conclude that these markets are both fatally flawed due to internal conceptual contradictions and morally problematic.

This article points out the challenges to current models for media ethics that arise from the private ownership of public media, and it proposes a new model that integrates Adam Smith's free-market theory and his system of moral reasoning. The model creates moral obligations to maintain the integrity of a system for anyone who profits from it. This model renews an appeal for the contemporary notion of transparency and is built on an analogy between the system of the free market (...) for creating wealth and the system of the free press for producing reliable market information. (shrink)

The ‘marketplace of ideas’ is an influential metaphor with widespread currency in debates about freedom of speech. We explore a number of ways competition between ideas might be described as occurring in a marketplace and find that none support the use of the metaphor. We suggest that an alternative metaphor, that of the ‘garden of ideas’, may offer more productive insights into issues surrounding the regulation of speech.