The purpose of this paper is to examine the outcomes arising from ideologically driven health reforms, which confronted an enduring socialized model of public health care in New Zealand. The primary focus is on the narratives arising from the unprecedented strike action of junior doctors, symbolic of industrial unrest in the public health sector. Analysis revealed the way in which moral obligations ingrained in the professional identities of junior doctors can be both enacted and persistently challenged by ongoing and extensive (...) ideologically embedded reform. A socialized public healthcare system privileges cooperation and relies on a public service ethos, espousing commitment and goodwill of health professionals. The inverse tenets of a pursuit of efficiency through New Public Management validate an ideology of market principles which legitimate competitive and self-interested behavior. The value-based disconnect that occurred not only affected the goodwill and trust of junior doctors, but also destabilized their commitment to their work in a way that threatened the ongoing sustainability of the public health service. This paper suggests four areas in which research might help solve the ethical conundrums currently undermining a public health service. The suggested direction moves the emphasis on systems and activities toward the cognitive and emotional needs of healthcare professionals. (shrink)

This article provides a broad overview of the interplay among cognition, belief systems and institutions, fleshing out a position best characterized as 'cognitive institutionalism'. We argue that a deeper understanding of institutions, emergence, their working properties and their effect on economic performance should start with the analysis of cognitive processes. Exploring the nature of individual and collective learning the article suggests that the issue is not whether agents are perfectly or boundedly rational, but rather how human beings actually reason and (...) choose. We also show how a full treatment of the phenomenon of path dependence should look like; there is a path dependence at the cognitive level, at the institutional level and at the economic level and there are links among them. (shrink)

The stated aim of cryptocurrencies is to free the monetary system from the need to trust financial intermediaries, by relying on incentive design and technology. Many descriptive studies, however, have questioned cryptocurrencies’ delivery on the promise of trustlessness. This paper promotes a normative analysis of trust in cryptocurrencies by discussing (i) whether trust is in principle eliminable, and (ii) whether trustlessness is in itself a desirable goal. These issues are closely related, we argue, to the further issue of what kind (...) of institutions cryptocurrencies represent. We discuss the cognitive functions played by cryptocurrencies through the lens of the “extended mind” hypothesis in the philosophy of mind and hence conceive of cryptocurrencies as mind-extending institutions. As the models of institutional mind extension differ in the fiduciary bond they assume exists between individuals and institutional resources, we compare the reliance-based model of “scaffolding institutions” with the trust-based model of “cognitive institutions,” showing that the ineliminability and desirability of trust lead to seeing cryptocurrencies as instances of the latter. In the end, our discussion suggests that trust is a necessary component of cryptocurrencies’ cognitive functions and its promotion helps to perform such cognitive functions more effectively and sustainably. (shrink)

The question of church-state separation has haunted America since her founding. James Madison and select founding fathers suggest that religions and states are better off when they minimize (or altogether eliminate) their interactions. Many Muslims in Iran, for instance, believe the opposite – aligning state functions with religious motives results in the most effective state. In this paper, I propose a model of thinking about church-state separation in which states and religions must maintain epistemic vulnerability to allow legal, political, and (...) socio-religious change. Simply put, epistemic vulnerability is an attitude of susceptibility to new sources and instances of knowledge. I present institutions as sets of constraints which interact with shared mental models. In this way, I explain how cultural institutions limit and shape individuals’ susceptibility to new knowledge. The more accommodating a religion is to self-assessment when confronted with new knowledge aids in forming institutions that are reliable, efficient, and robust for groups to grow and adopt new ideas. This results in a model of state-religion that highlights the impact on epistemic vulnerability when either religious organizations or state governance expand their responsibilities outside of their proper functions. (shrink)

Previous literature has shown contradictory results regarding the relationship between economic liberalism at the country level and firms’ engagement in corporate social action. Because liberalism is associated with individualism, it is often assumed that firms will engage in mostly symbolic rather than substantive social and environmental actions; in other words, they will practice “greenwashing.” To understand how cultural beliefs in the virtues of liberalism affect the likelihood of greenwashing, we disentangle the effects of the distinct and co-existing beliefs in the (...) virtues of economic liberalism. We begin by conducting an exploratory qualitative analysis of managers’ sentiments on this matter, based on a focus group methodology. We then use these investigative elements to articulate a comparison of the conflicting theoretical arguments: in liberal contexts, are firms, as social entities, inherently selfish or pro-active when it comes to CSA? We empirically test our hypotheses on a large-scale dataset. Finally, we show paradoxically that in countries where beliefs in the virtues of competition are strong, firms are more likely to greenwash, while in countries where beliefs in the virtues of individual responsibility are prominent, firms are more likely to focus on concrete actions. These findings suggest that in contexts where weak governments are seen as ideal, firms might feel the need to step into fill institutional voids, in contexts in which competitive mindsets dominate, this tendency is counterbalanced. (shrink)

Theories of institutions can be classified into two broad approaches: institutions-as-rules and institutions-as-equilibria. According to the first approach, institutions are conceived as rules that guide the actions of individuals engaged in social interactions. On the other hand, the second approach views institutions as behavioral patterns. In order to have a complete picture of institutions, we need to take both approaches into consideration. Individuals construct mental models to produce expectations about institutions, while institutions make individual expectations relatively compatible. The main purpose (...) of this paper is to develop a general framework within which it is possible to analyze coevolution of individual mental models and institutions. (shrink)

This paper examines two paths by which F. A. Hayek’s work has influenced the cognitive theory of institutions: cognition and cultural evolution. It argues that there is a relationship between the sensory order and the social order. The explanation of social order begins with the human mind. This is illustrated with ideas relating to understanding culture from a cognitive viewpoint. Human cognition makes cultural evolution an endogenous process. The paper draws on ideas of co-evolution of individuals’ mental models and their (...) actions. Mental models can be modified by feedback from altered perceived reality as a consequence of peoples’ altered actions. A key to understanding cultural evolution is an understanding of how individuals modify their mental models. (shrink)

(2013). Why humans are (sometimes) less rational than other animals: Cognitive complexity and the axioms of rational choice. Thinking & Reasoning: Vol. 19, No. 1, pp. 1-26. doi: 10.1080/13546783.2012.713178.

Through the application of machine learning techniques, this paper aims to estimate the importance of messages with ideological load during the elections held in Spain on May 24th, 2015 posted by Twitter’s users, as well as other variables associated with the publication of these types of messages. Our study collected and analysed 24,900 tweets associated to two of the main trending topics’ hashtags used in the election day and build a predictive model to infer the ideological orientation for the messages (...) which made use of these hashtags during Election Day. This approach allows us to classify the ideological orientation of all collected tweets, instead of only tweets that explicitly express their ideological or partisan preferences in the messages. Using the ideological orientation for all tweets predicted by our model, it was possible to identify how messages with a defined ideological load were pushed forward by users with leftist tendencies. We also observed a relationship between these messages and the partisan orientation of those who published them. (shrink)

This article develops an "ordonomic" approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to (...) organize mutually advantageous cooperation. Second, business ethics should teach the management competencies necessary to fulfill business's societal mandate. These competencies are optimization competence in the basic game of value creation, governance competence in the meta game of (political) rule setting, and the three discourse-related skills of orientation competence, reception competence, and communication competence necessary for engaging in the meta-meta game. Third, companies can help solve global problems through global corporate citizenship if they participate as political and moral actors in rule-setting processes and rule-finding discourse aimed at laying the foundation for value creation on a global scale. (shrink)

The literatures on bounded and ecological rationality are built on adaptationism—and its associated modular, cognitivist and computational paradigm—that does not address or explain the evolutionary origins of rationality. We argue that the adaptive mechanisms of evolution are not sufficient for explaining human rationality, and we posit that human rationality presents exaptive origins, where exaptations are traits evolved for other functions or no function at all, and later co-opted for new uses. We propose an embodied reconceptualization of rationality—embodied rationality—based on the (...) reuse of the perception-action system, where many neural processes involved in the control of the sensory-motor system, salient in ancestral environments have been later co-opted to create—by tinkering—high-level reasoning processes, employed in civilized niches. (shrink)

As environmental issues have become increasingly prominent around the world, corporate environmental responsibility has begun to attract more attention. As the decision-makers of firms, top executives play an important role in the environmentally ethical behavior of their corporations. Few studies, however, have explored the motivations behind corporations’ environmentally responsible behavior from the perspective of how CEOs’ early experiences shape their decisions. This paper explores the impact that CEOs who experienced the Send-down movement have on their companies’ environmentally responsible behavior and (...) the boundary conditions of this impact from the perspective of the imprinting theory. Based on the data of listed Chinese companies from 2009 to 2020, we have found that CEOs who were themselves “Sent-down youth” have a positive impact on corporate environmental responsibility. For firms with a higher proportion of state ownership and CEOs with Chinese Communist Party membership, the relationship between experience with the Send-down movement and corporate environmental responsibility is strengthened, whereas a higher level of market competition weakens the relationship. This article enriches and deepens the research on the imprinting theory, and it also has certain practical implications for firms that hire top executives with unique types of early experiences to promote business ethics improvement. (shrink)

Summary The analysis of social and economic phenomena has a long Gestalt-theoretical tradition but is currently seen rather as a niche subject. In this article, recent important approaches are presented that explicitly or implicitly refer to Gestalt-theoretical considerations. The particular relevance of narratives is pointed out. In addition, further analytical challenges are discussed.

This paper explores the role of ideology in attempts to influence public policy and in business representation in the EU–China solar panel anti-dumping dispute. It exposes the dynamics of international activity by emerging-economy multinationals, in this case from China, and their interactions in a developed-country context. Theoretically, the study also sheds light on the recent notion of ‘liability of origin’, in addition to the traditional concept of ‘liability of foreignness’ explored in international business research, in relation to firms’ market and (...) political strategies and their institutional embeddedness in home and host countries. Through a qualitative analysis of primary and secondary materials and interview data with key protagonists, we provide a detailed evolution of the case, the key actors involved and their positions, arguments and strategies. This illustrates the complexities involved in the interaction between markets and ideologies in the midst of debates regarding different forms of subsidy regimes for renewable energy, free trade versus protectionist tendencies by governments, and the economic and sustainability objectives of firms and societies. The case shows how relative newcomers to the EU market responded to overcome a direct threat to their business and became, with support from their home government, active participants in the public debate through interactions with local commercial partners and non-governmental organisations. Firms adopted relatively sophisticated strategies to reduce their liabilities vis-à-vis host-country institutions and local stakeholders, including collective action, to increase their legitimacy and reputation, and counter ideologically based attacks. We also discuss implications and limitations. (shrink)

Why would decision makers adopt heuristics, priors, or in short “habits” that prevent them from optimally using pertinent information—even when such information is freely-available? One answer, Herbert Simon’s “procedural rationality” regards the question invalid: DMs do not, and in fact cannot, process information in an optimal fashion. For Simon, habits are the primitives, where humans are ready to replace them only when they no longer sustain a pregiven “satisficing” goal. An alternative answer, Daniel Kahneman’s “mental economy” regards the question valid: (...) DMs make decisions based on optimization. Kahneman understands optimization not differently from the standard economist’s “bounded rationality.” This might surprise some researchers given that the early Kahneman, along with Tversky, have uncovered biases that appear to suggest that choices depart greatly from rational choices. However, once we consider cognitive cost as part of the constraints, such biases turn out to be occasional failures of habits that are otherwise optimal on average. They are optimal as they save us the cognitive cost of case-by-case deliberation. While Kahneman’s bounded rationality situates him in the neoclassical economics camp, Simon’s procedural rationality echoes Bourdieu’s “habitus” camp. To abridge the fault line of the two camps, this paper proposes a “two problem areas hypothesis.” Along the neoclassical camp, habits satisfy wellbeing, what this paper calls “substantive satisfaction.” Along the Bourdieu camp, habits satisfy belonging, love, and bonding with one’s environment, what this paper calls “transcendental satisfaction.”. (shrink)

A model is “any representation or concept that helps us to understand the world whenever common sense or direct observations are inadequate.” Common sense and direct observation often prove inadequate to the complexities of the twenty-first-century cities. Thus, models abound in urban life and governance. However, a model is not only a tool for control but a way of defining a situation. Framing the city so as to render it susceptible to interpretation and intervention is an exercise not merely with (...) scientific or technological value but with rhetorical power. The tradition of comprehensive urban models, beginning with the advent of computers and culminating in the self-analyzing “smart city,” I argue, sidelines this rhetorical power in favor of a tone of scientific authority that, while justifiable in technical domains, does not legitimately scale to the level of a political community. Making good on the civic potential of Big Data thus requires recontextualizing properly scientific enterprises within an adequate political philosophy of the city, allowing for the construction of cultural urban models that set human freedom at the core of its inner workings. (shrink)

The aim of this paper is to evaluate the extent of the practice of using informal payments for accessing the services of public clinics or hospitals across Europe and to explain the prevalence of this corrupt practice using the framework of institutional theory. To achieve this, a multi-level mixed-effect logistic regression on 25,744 interviews undertaken in 2020 with patients across 27 European Union countries is conducted. The finding is that the practice of making informal payments remains a prevalent practice, although (...) there are large disparities in the usage of this practice in different European countries. However, informal payments by patients are more likely when there is a lower institutional trust and a higher degree of asymmetry between formal and informal institutions. The resultant proposal is that policy makers need to address the institutional environment to tackle such informal payments. How this can be achieved is outlined. (shrink)

Institutions are often regarded either as rules or as equilibria sustained by self-interested agents. I ask how these two theories can be combined. According to Philip Pettit’s _Virtual Control Theory_, they explain different things: rules explain why regularities persist; self-interest why they are resilient. Thus, his theory reconciles the two theories by adjusting their domains of application. However, the available evidence suggests that rules and self-interest often combine as sources of motivation. Because of this, it is better to integrate the (...) theories rather than to reconcile them. Inspired by Cristina Bicchieri’s theory of social norms, I incorporate the notion of rule-following into a game-theoretic account of institutions. According to the resulting _Rules-and-Equilibrium Theory_, institutions are rule- or norm-governed social practices. The theory does not only explain their persistence and resilience, but also their fragility, which provides another reason for preferring the proposed integration to Pettit’s reconciliation. (shrink)

The folk conception of money as an object is not a promising starting point to develop general, explanatory metaphysical accounts of the social world. A theory of institutions as rules in equilibrium is more consistent with scientific theories of money, is able to shed light on the folk view, and side-steps some unnecessary puzzles.

An important part of what it means for agents to be situated in the everyday world of human affairs includes their engagement with economic practices. In this paper we employ the concept of cognitive institutions in order to provide an enactive and interactive interpretation of market and economic reasoning. We challenge traditional views that understand markets in terms of market structures or as processors of distributed information. The alternative conception builds upon the notion of the market as a ‘scaffolding institution’. (...) Introducing the concept of market as a ‘socially extended’ cognitive institution we go beyond the notion of scaffolding to provide an enactive view of economic reasoning that understands the market participant in terms of social interactive processes and relational autonomy. Markets are more than inert devices for information processing; they can be viewed as ‘highly scaffolded’, where strong constraints and incentives predictably direct agents’ behavior. Building on this idea we argue that markets emerge from (a) the economic interaction of both supply and demand sides, in continual and mutual interplay, and (b) more basic social interactions. Consumer behavior in the marketplace is complex, not only determining the market price, but also extending the consumer’s cognitive processes to reliably attain a correct evaluation of the good. Moreover, this economic reasoning is socially situated and not something done in isolation from other consumers From a socially situated, interactive point of view buying or not buying a good is something that enacts the market. This shifts the status of markets from external institutions that merely causally affect participants’ cognitive processes to social institutions that constitutively extend these cognitive processes. On this view the constraints imposed by social interactions, as well as the possibilities enabled by such interactions, are such that economic reasoning is never just an individual process carried out by an autonomous individual, classically understood. In this regard, understanding the concept of relational autonomy allows us to see how economic reasoning is always embodied, embedded in, and scaffolded by intersubjective interactions, and how such interactions make the market what it is. (shrink)

In this article it is argued that there are notable parallels between all of the different strands within ethics on the one hand, and accountancy on the other that, in teaching, can be drawn upon to enhance students’ understanding of the latter. Accountancy, part of economics, draws on utilitarian ethics, but not solely so. Accounting, in addition, draws on deontological and communitarian strands in ethics. The article suggests that the teaching of accounting – especially to non-economists – would benefit substantially (...) from highlighting and developing these parallels. (shrink)