Implication of Sen’s Concept of Commitment for the Economic Understanding of the Corporation
Abstract
In a classic paper, Amartya Sen proposed that human reasons for action be conceptualized in terms of three distinct forms of motivation: self-interest, sympathy and commitment. This article explores the implications of the concept of commitment for the economic understanding of the corporation. It argues that commitment can help to explain the deliberative features of corporate governance — features that the traditional economic approach inadequately explains or passes over entirely