A powerful objection to impersonal moral theories states that they cannot accommodate the good of friendship. This paper focuses on the problem as it applies to consequentialism and addresses the recent criticism that even the most sophisticated forms of consequentialism are incompatible with genuine friendship. I argue that this objection fails since those who pose this challenge either seriously oversimplify consequentialism's theory of value, misunderstand its theory of practical reason, or put too much weight on the good of friendship itself. (...) I conclude by assessing a contemporary consequentialist response in order to suggest a workable conception of consequentialist friendship. (shrink)

Trust can be thought of as a three place relation: A trusts B to do X. Trustworthiness has two components: competence (does the trustee have the relevant skills, knowledge and abilities to do X?) and willingness (is the trustee intending or aiming to do X?). This chapter is about the willingness component, and the different motivations that a trustee may have for fulfilling trust. The standard assumption in economics is that agents are self-regarding, maximizing their own consumption of goods and (...) services. This is too restrictive. In particular, people may be concerned with the outcomes of others, and they may be concerned to follow ethical principles. I distinguish weak trustworthiness, which places no restrictions on B’s motivation for doing X, from strong trustworthiness, where the behaviour must have a particular non-selfish motivation, in finance the fiduciary commitment to promote the interests of the truster. I discuss why strong trustworthiness may be more efficient and also normatively preferable to weak. In finance, there is asymmetric information between buyer and seller, which creates a need for trustworthy assessment of products. It also creates an ambiguity about whether the relationship is one of buyer and seller, governed by caveat emptor, or a fiduciary relationship of advisor and client. This means that there are two possible reasons why trust may be breached: because the trustee didn’t realise that the truster framed the relationship as a fiduciary one, or because the trustee did realise but actively sought to take advantage of the trust. Correspondingly, there are two possible types of agent: normal people who are not always self-regarding and who are trust responsive (if they believe that they are being trusted then they are likely to fulfill that trust), and knaves, after Hume’s character who is always motivated by his own private interest. We can increase the trustworthiness of normal people by getting them to re-frame the situation as one of trust, so they will be strongly trustworthy (i.e. change of institutional culture), and by providing non-monetary incentives (the correct choice of incentive will depend on exactly what their non-selfish motivation is). Knaves need sanctions, which can make them weakly trustworthy. However, this is a delicate balance because sanctions can crowd out normative frames. We can also increase the trustworthiness of financiers by making finance less attractive to knaves; changing the mix of types in finance could help support the necessary cultural change. (shrink)

Economic Theory normally assumes the so-called homo economicus, a consequential model of rationality. We highlight the main features of this model in opposition to deontology: axiological homogeneity, maximization and agent neutrality. Amartya Sen’s criticism of standard consequentialism copes to those features, and includes commitment and duty in the economic rationality. We analyze his concept of preference to ascertain how far economic rationality can thus go in the direction of deontology. We conclude that, though diminished, the difference between them still remains.

El artículo defiende que los compromisos son tanto un tipo de acuerdo como un tipo de decisión. Los principales objetivos son: 1) identificar la estructura formal de las situaciones de compromiso en las que alguna decisión de compromiso es inevitable, incluyendo CDs que ponen en riesgo la integridad del decisor; 2) mediante las nociones de juicio básico y compulsivo propuestas por Amartya Sen, establecer cuándo una CD en una situación de compromiso podría estar moralmente justificada. Se concluye que las CDs (...) justificadas implican una contrición moral que ayuda a salvar la distancia entre deontología y consecuencialismo. (shrink)

Linguistic structures have recently started to attract attention from economists as determinants of economic phenomena. This paper provides the first comprehensive review of this nascent literature and its achievements so far. First, we explore the complex connections between language, culture, thought and behaviour. Then, we summarize the empirical evidence on the relationship between linguistic structures and economic and social outcomes. We follow up with a discussion of data, empirical design and identification. The paper concludes by discussing implications for future research (...) and policy. (shrink)