Abstract

De gustibus non est disputandum. This maxim reflects a fundamental problem both for the study of markets and for the concern with morals. The problem is the intractability of tastes coupled with their indispensability for both positive and normative economics. Tastes are indispensable in positive microeconomic theory because, under the label ‘preferences,’ they, together with expectations, determine choice and behavior. Tastes are equally indispensable to welfare economics' conception of morally permissible arrangements, because these arrangements must reflect compromises between competing and conflicting preferences