Abstract Twenty years ago, Tibor Scitovsky questioned the assumption, embedded in neoclassical economics, that human happiness will be augmented if the level of consumption either rises or becomes more uniform over time. Evidence from the 1990?1993 World Values Survey suggests that his doubts were well?founded: although economic gains apparently make a major contribution to subjective well?being as one moves from societies at the subsistence level to those with moderate levels of economic development, further economic growth seems to have little or (...) no impact on subjective well?being. This transition seems to reflect a basic cultural change that results in the diminishing marginal utility of economic growth. (shrink)

In this article, I firstly discuss why a prioritarian clause can rescue the utilitarian doctrine from the risk of exacerbating inequality in the distribution of resources in those cases in which utility of income does not decline at the margin. Nonetheless, when in the presence of adaptive preferences, classic prioritarianism is more likely than utilitarianism to increase the inequality of resources under all circumstances, independently of the diminishing trend of utility. Hence, I propose to shift the informational (...) focus of prioritarianism from welfare to either social income or capabilities in order to safeguard those who are worse off. Following this, I argue that we may have reasons to limit the aggregative logic of priority-amended utilitarianism through one or more sufficiency thresholds, and that we can partially defuse the negative-thesis objection that is usually levelled against sufficientarianism, provided we interpret the threshold(s) as valid only as long as everyone is led above it. (shrink)

Nozick (1977) was a critique of the view of Austrian economics which rejected the notion of indifference in human action. This author claimed that this stance was incompatible with the notion of the supply of a good, and, also, with diminishing marginal utility, both of which were strongly supported by this praxeological school of thought. Block (1980) was an attempt to rescue the Austrian school from this brilliant intellectual challenge. Hoppe (2005; 2009) rejected Nozick’s challenge, and, also, (...) Block’s (1980) response. Block (2009a) and Block and Barnett (2010), defended Block’s (1980) analysis of indifference. The latest contribution to this ongoing discussion is Wysocki (2021) who maintains that Hoppe was correct in his rejection of Nozick, while Block was not. The present paper is a rejoinder to Wysocki (2021). (shrink)

Thomas Hurka has recently proposed a utilitarian theory which would effect a compromise between Average and Total utilitarianism, the better to deal with issues in population ethics. This Compromise theory would incorporate the principle that the value which an extra happy person contributes to a possible world is a decreasing function of the total population of that world: that happy people are of diminishing marginal value. In spite of its initial plausibility I argue against this principle. I show (...) that the Compromise theory is actually no improvement over the two original versions of utilitarianism; in particular, it is subject to almost all the objections which are fatal to Average utilitarianism, and more besides. And I attempt to dispell the appearance that intuition supports the Compromise theory as against Total utilitarianism, by arguing that the latter's Repugnant Conclusion, when properly understood, is not intuitively unacceptable. Total utilitarianism remains a plausible ethical theory, while both the Average and the Compromise theories should be definitely rejected. (shrink)

Thomas I-Iurka has recently proposed a utilitarian theory which would effect a compromise between Average and Total utilitarianism, the better to deal with issues in population ethics. This Compromise theory would incorporate the principle that the value which an extra happy person contributes to a possible world is a decreasing function of the total population of that world: that happy people are of diminishing marginal value. In spite of its initial plausibility I argue against this principle. I show (...) that the Compromise theory is actually no improvement over the two original versions of utilitaiianism; in particular, it is subject to almost all the objections which are fatal to Average utilitarianism, and more besides. And I attempt to dispell the appearance that intuition supports the Compromise theory as against Total utilitarianism, by arguing that the 1atter’s "Repugnant Conclusion," when properly understood, is not intuitively unacceptable. Total utilitarianism remains a plausible ethical theory, while both the Average and the Compromise theories should be definitely rejected. (shrink)

Despite decades of research, we still lack a clear explanation for the emergence and persistence of inequality. Here we propose and evaluate a marginal utility of inequality hypothesis that nominates circumscription and environmental heterogeneity as independent, necessary conditions for the emergence of intragroup material inequality. After coupling the Standard Cross-Cultural Sample with newly generated data from remote sensing, we test predictions derived from this hypothesis using a multivariate generalized additive model that accounts for spatial and historical dependence as (...) well as subsistence mode. Our analyses show that the probability a society will be stratified increases significantly as a function of proxies of environmental heterogeneity and environmental circumscription. This supports the hypothesis that increasing environmental heterogeneity and circumscription drives the emergence and persistence of inequality among documented societies across the globe. We demonstrate how environmental heterogeneity and circumscription produce situations that limit individuals’ options so that some may find it in their best interest to give up some autonomy for material gain, while others may find it in their best interest to give up some material resources for another individual’s time or deference. These results support the marginal utility of inequality framework and enable future explorations of the ecological conditions that facilitate the emergence of intragroup inequality through time and across the globe. (shrink)

Does the contemporary built environment—the ensemble of our humanly created surroundings—make us happy? This question prompts a consideration of the psychological dimensions of economic value, and of Tibor Scitovsky's revisions of standard economic theory. With Scitovsky as a starting point, a model of value based on modern complexity theory and a Maslow‐like rendition of human needs can account for some of the more important exceptions to the law of diminished marginal utility, including those that may undermine the built (...) environment in a market economy. (shrink)

[321] Over a year ago, with his essay “die klassische Werttheorie und die Theorie vom Grenznützen” [“The Classical Value Theory and the Theory of Marginal Utility ”],1 which appeared in this yearbook and in which he declared himself in favor of the rival, older value theory, which bases the value of goods on costs, Professor Dietzel inaugurated a polemic against the modern value theory of marginal utility. This attack was not an isolated case. Somewhat earlier it (...) had been started by the eminent Danish scholar Scharling in his essay, well-known to the readers of this yearbook, concerning “Werttheorien und Wertgesetze” [“Theories of Value and Laws of Value”].2 In Italy, A. Loria3 conducts it with an extraordinarily quarrelsome spirit. It is present even in France. Finally, it is right now carried on in America with particular interest and keen activity. The outbreak and the rapid spread of this controversy is not in the least surprising. It is the completely natural consequence of the scientific situation in which the theory of value presently finds itself. So long as the theory of. (shrink)

Some of us believe in giving priority to people who are badly off in designing social policies and in acting ourselves to help others. As Thomas Nagel puts it, the badly off should be first in the queue when benefits are distributed. This idea is one way of explaining moral views that are called ‘egalitarian.’ Egalitarian moral views can depend either on the idea of valuing equality itself or on the idea of giving priority to the interests of the badly (...) off. This paper is concerned with the second kind of egalitarianism.The purest form of the idea explains the priority in this way: a benefit for someone badly off can be more important morally, or can have more value, than a benefit of the same size for someone better off. This is to suppose that the priority in question cannot be explained by thinking in utilitarian terms and accepting the principle of diminishing marginal utility. (shrink)

Act Utilitarianisms divide into Total and Average versions. Total versions seem to imply Parfit’s “Repugnant Conclusion”. Average versions are proposed in part to avoid the Repugnant Conclusion, but these are subject to “Mere Addition” arguments as detailed by Hudson in “The Diminishing Marginal Value of Happy People”. Thus, various intermediate versions of utilitarianism, such as the one investigated by Hurka in “Value and Population Size”, take on interest. But Hudson argues that such compromise theories are subject to the (...) mere addition arguments, and are therefore no improvement over Average Utilitarianism. I disagree: some such compromise solutions escape Hudson’s Mere Addition arguments. (shrink)

I argue that the use of a social discount rate to assess the consequences of climate policy is unhelpful and misleading. I consider two lines of justification for discounting: (i) ethical arguments for a "pure rate of time preference" and (ii) economic arguments that take time as a proxy for economic growth and the diminishing marginal utility of consumption. In both cases I conclude that, given the long time horizons, distinctive uncertainties, and particular costs and benefits at (...) stake in the climate context, discount rates are at best a poor proxy for the normative considerations they are meant to represent. (shrink)

What value should we put on our chances of obtaining a good? This paper argues that, contrary to the widely accepted theory of von Neumann and Morgenstern, the value of a chance of some good G may be a nonlinear function of the value of G. In particular, chances may have diminishing marginal utility, a property that is termed chance uncertainty aversion. The hypothesis that agents are averse to uncertainy about chances explains a pattern of preferences often (...) observed in the Ellsberg paradox. While these preferences have typically been taken to refute Bayesian decision theory, it is shown that chance risk aversion is perfectly compatible with it. (shrink)

Despite the prevalence of the terms utilitarianism and utilitarian in the health care and health policy literature, anecdotal evidence suggests that authors are often not fully aware of the diversity of utilitarian theories, their principles, and implications. Further, it seems that authors often categorically reject utilitarianism under the assumption that it violates individual rights. The tendency of act utilitarianism to neglect individual rights is attenuated, however, by the diminishing marginal utility of wealth and the disutility of a (...) protest by those who are disadvantaged. In practice, act utilitarians tend to introduce moral rules and preserve traditional rules. At the same time, the tenability of rule utilitarianism is limited because it ultimately collapses into act utilitarianism or a deontological theory. Negative utilitarianism is a viable utilitarian variant only if we accept complete aversion to suffering, ie, if we disregard any forgone opportunities to increase pleasure. Finally, the adoption of preference utilitarianism requires us to accept the subjectivity of individual claims which may be perceived as unfair. (shrink)

Perhaps the most salient feature of Rawls's theory of justice which at once attracts supporters and repels critics is its apparent egalitarian conclusion as to how economic goods are to be distributed. Indeed, many of Rawls's sympathizers may find this result intuitively appealing, and regard it as Rawls's enduring contribution to the topic of economic justice, despite technical deficiencies in Rawls's contractarian, decision-theoretic argument for it which occupy the bulk of the critical literature. Rawls himself, having proposed a “coherence” theory (...) of justification in metaethics, must regard the claim that his distributive criterion “is a strongly egalitarian conception” as independently a part of the overarching moral argument. The alleged egalitarian impact of Rawls's theory is crucial again in normative ethics where Rawls is thought to have developed a major counter-theory to utilitarianism, one of the most popular criticisms of which has been its alleged inadequacy in handling questions of distributive justice. Utilitarians can argue, however, as Brandt recently has, that the diminishing marginal utility of money, along with ignorance of income-welfare curves, would require a utility-maximizing distribution to be substantially egalitarian. The challenge is therefore for Rawls to show that his theory yields an ethically preferable degree of equality. (shrink)

When assessing the cost effectiveness of health care programmes, health economists typically presume that distant events should be given less weight than present events. This article examines the moral reasonableness of arguments advanced for positive discounting in cost-effectiveness analysis both from an intergenerational and an intrapersonal perspective and assesses if arguments are equally applicable to health and monetary outcomes. The article concludes that behavioral effects related to time preferences give little or no reason for why society at large should favour (...) the present over the future when making intergenerational choices regarding health. The strongest argument for discounting stems from the combined argument of diminishing marginal utility in the presence of growth. However, this hinges on the assumption of actual growth in the relevant good. Moreover, current modern democracy may be insufficiently sensitive to the concerns of future generations. The second part of the article categorises preference failures (which justify paternalistic responses) into two distinct groups, myopic and acratic. The existence of these types of preference failures makes elicited time preferences of little normative relevance when making decisions regarding the social discount rate, even in an intrapersonal context. As with intergenerational discounting, the combined arguments of growth and diminishing marginal utility offer the strongest arguments for discounting in the intrapersonal context. However, there is no prima facie reason to assume that this argument should apply equally to health and monetary values. To be sure, selecting an approach towards discounting health is a complex matter. However, the life-or-death implications of any approach require that the discussion not be downplayed to merely a technical matter for economists to settle. (shrink)

Even where willingness-to-pay as a measure of welfare impact is adjusted for diminishing marginal utility, welfare economics is shown to favour policies that add to the life expectancy or that enhance the quality of life of persons who are already better-off. I propose an alternative, Equal Respect methodology, under an axiomatic claim that at the point of decision the prospective life years of all individuals are of equal intrinsic social value. This justifies equal valuation of risk mitigation (...) across all persons; similarly, all appraised impacts should be scaled to accord equal respect to difficult but no-less-valuable lives. (shrink)

Overview of the main issues about value pluralism.

Recent work on the evolution of utility has brought the blunt instrument of kin selection closer to the cluttered scalpel kit of social science. The concept of diminishing marginal utility can help streamline the latter. Reconciling ultimate causes with proximate inclinations, however, will be easier for the case of assistance from grandparents than assistance to them.

The pivotal point in the Austrian literature on homogeneity, choice and indifference was constituted by Nozick’s On Austrian Methodology. Nozick provoked a long debate on the above notions within Austrianism. The aim of this paper is to elaborate such an account of homogeneity that would take the sting out of Nozick’s challenge and allow for non-trivial formulation of the law of diminishing marginal utility. Hence, we shall first take a closer look at the debate on indifference within (...) the Austrian camp, while defending and building upon the Hoppean account vis-à-vis Block’s criticism. Our justification of the Hoppean position shall consist in showing that his account of the correct description of an action is not an ad hoc move aimed at solving just one problem of indifference but is highly intuitive and widely applicable. We conclude by restating the above-mentioned law, thus demonstrating that the Nozickian objection can be successfully replied. (shrink)

Why disdain replicated art? If art is valuable because it evokes experiences of beauty, they should be comparable. In chapter 11 of the Elephant in the Brain, Simler and Hanson argue we actually care about the extrinsic properties of art—e.g. who made it—to signal our intelligence and taste. Here I defend a different explanation for the evidence cited by S&H: the extrinsic properties of art are central to what constitutes art, play a bigger role fixing the value of art than (...) S&H allow, and the potential for diminishing marginal utility on the value of the intrinsic properties of art—seeing the original Mona Lisa is rare; seeing a copy isn’t—explains why we assign such value to the extrinsic properties of art. And thus we have a non-signaling explanation of art consumption, which may or may not complement signaling theory. (shrink)

Scale-based models of weighing reasons face challenges concerning the context sensitivity of weight, the aggregation of weight, and the methodology for determining what the weights of reasons are. I resolve these challenges.

South Africa is a highly distributively unequal country, and its inequality continues to be largely along racial lines. Such circumstances call for assessment from the perspective of contemporary theories of distributive justice. Three such theories—Rawlsian justice, utilitarianism, and luck egalitarianism—are described and applied. Rawls' difference principle recommends that the worst off be made as well as they can be, a standard which South Africa clearly falls short of. Utilitarianism recommends the maximization of overall societal well-being, a goal which South Africa (...) again fails to achieve given its severe inequality and the fact of the diminishing marginal value of money—that a given amount of money tends to produce more utility for a poor person than it does for a rich person. The final theory, luck egalitarianism, aims to make distributions sensitive to individual exercises of responsibility. This view also objects to South Africa's inequality, this time on the basis that the poor are overwhelmingly worse off through no fault or choice of their own. These major theories of distributive justice therefore all propose large-scale redistribution to the benefit of the (predominantly black) poor. Perhaps more surprisingly, all three views also provide support for socio-economic affirmative action, as opposed to South Africa's race-based Black Economic Empowerment. (shrink)

Recent research predicts the narrowing of the gender gap concerning new media use. This article presents the results of a quantitative study of the gender gap in Flanders. Significant gender differences were found with men having more access to, and making more use of computers, the Internet and e-mail. In general, females reported more negative attitudes towards new media than men did. Thus, it appears that, despite American research indicating the opposite, in Flanders the gender gap is still very much (...) in evidence. To contextualize the relationship between gender, computer anxiety, and attitudes a multiple regression analysis was carried out on socio-demographic variables and computer-related items. The results showed that, although gender remains a significant factor, it is computer experience which is the strongest predictor of computer anxiety and attitudes. (shrink)

Volume 26, Issue 4, December 2019, Page 389-392.

Volume 26, Issue 4, December 2019, Page 380-384.

The introduction of the euro gave a unique opportunity to empirically disentangle two components of utility: intrinsic value, a rational component central in economics, and the numerosity effect (going by numbers while ignoring units), a descriptive and irrational component central in prospect theory and underlying the money illusion. We measured relative risk aversion in Belgium before and after the introduction of the euro, and could consider changes in intrinsic value while keeping numbers constant, and changes in numbers while keeping (...) intrinsic value constant. Intrinsic value significantly affected risk aversion, and the numerosity effect did not. Our study is the first to confirm the classical hypothesis of increasing relative risk aversion while avoiding irrational distortions due to the numerosity effect. (shrink)

There is a standard belief that the modern theory of marginal utility originated in the UK with Jevons, Germany with Gossen, Austria with Menger and France with Walras. In this new book, John Chipman introduces new English translations of important writings from German economists such as Rau, Hildebrand, Roscher and Knies showing that the introduction of this concept originated with them. This ground breaking book comes with a long introduction from John Chipman analysing the theory.

Patient autonomy and distributive justice are fundamental ethical principles that may be at risk in liver transplant units where decisions are dictated by the need to maximise the utility of scarce donor organs. The processes of patient selection, organ allocation and prioritisation on the wait list have evolved in a constrained environment, leading to high levels of complexity and low transparency. Regarding paternalism, opaque listing and allocation criteria, patient factors such as passivity, guilt, chronic illness and sub-clinical encephalopathy are (...) cited as factors that may inhibit patient engagement. Regarding justice, established regional, gender and race based inequities are described. The paradox whereby hepatologists both advocate for individual patients and discharge their duty of stewardship to apportion organs according to larger utilitarian principles is explored. Competing subjective factors such as physicians’ perception of moral responsibility, the qualitative nature of expert medical assessment and institutional or personal loyalty to re-transplantation candidates are described. Realistic limits of self-determination and justice are discussed, and possible future directions in terms of patient involvement proposed. (shrink)

While the history of science in Polish language has a long history, both intellectual and institutional, it became less visible internationally following the fall of the Iron Curtain. This article looks into the institutional state of history-of-science writing in Poland, and discusses several key focal points that emerged in recent years. By distinguishing between the core history of science, written at institutions devoted to this discipline, and broader academic discussions concerning science's past, I claim that, in recent decades, more important (...) topical and theoretical innovation has come from what we can term the “esoteric” circle (referring to Ludwik Fleck)—that is, scholars who do not identify themselves as historians of science. Given that those scholars from abroad who are interested in Polish history of science are in fact general historians, we get a strong impression that we are witnessing a deeper turn in the field, one with diminishing specialization and greater attention paid to situating science in a broader range of societal processes. (shrink)

Violations of expected utility theory are sometimes attributed to imprecise preferences interacting with a lack of learning opportunity in the experimental laboratory. This paper reports an experimental test of whether a learning opportunity which engenders accurate probability assessments, by enhancing understanding of the meaning of stated probability information, causes anomalous behaviour to diminish. The data show that whilst in some cases expected utility maximising behaviour increases with the learning opportunity, so too do systematic violations. Therefore, there should be (...) no presumption that anomalous behaviour under risk is transient and that discovered preferences will be appropriately described by expected utility theory. (shrink)

When examining the relevance of Bentham’s thinking to debates on cultural value, we should look, first of all, at the significance of utility as an independent ethical principle. Bentham finds the term ‘utility’ in the philosophy of David Hume, condemns Hume’s use of this term as ambiguous, and establishes utility as an independent ethical principle that is opposed to Hume’s preference for delicacy of sentiment and good taste. I argue that Hume is averse to the very thing (...) that Bentham places at the centre of his ethics, namely a reckoning that we can all make with how pleasure shapes our sense of self. Bentham places us under an obligation to work out what our pleasures mean for us, how they situate us in the world, and how others will respond to what gives us the most pleasure. This working hypothesis on what gives each of us the most pleasure, must be conveyed in neutral, non-judgemental terms. Bentham espouses simple amusements, including games of push-pin and solitaire, as examples of how a recalculation of the possibilities for increasing pleasure and diminishing pain can take place, in defiance of cultural evaluations of what is ‘high’ and ‘low’. These distinctions of high and low culture are only one example of how definitions of culture affect the social organization of pleasure, within a broader conception of cultural value. Bentham asks whether definitions of cultural value are equitable and just, when seen in relation to the ethical aim of prolonging pleasure and diminishing pain. (shrink)

The Social Marginalization...In the “enterprise restructuring” process begun in the late 1990s, China’s medium and small-scale state-owned enterprises rapidly converted themselves, through massive sell-offs, mergers and the forming of share-holding cooperatives, into private enterprises, while the larger-scale SOEs strove to reinvent themselves as “modern enterprise systems” through the issuance of shares, by company mergers and sell-offs, or via declarations of bankruptcy. During this process, SOE workers who had retained their jobs and also those who had been “laid off” in the (...) restructuring staged frequent and repeated collective protest actions. Using primary data, this paper seeks to portray the profound social marginalization of workers that has occurred during the SOE restructuring process, and it identifies this factor as being the primary cause of the increase in workers’ collective protests in China in recent years. In the author’s view, the rights to which Chinese workers are entitled under the country’s labor laws have been steadily eroded and diminished by the impact of enterprise restructuring. In a clear case of “closing the stable door after the horse has bolted,” the central government began issuing instructions to safeguard workers’ rights only when the restructuring process had been underway for several years. The wholesale loss of their rights has triggered intense indignation on the part of the workers, and the groundswell of collective protest actions around the country nowadays represents a heart-felt cry for help by an increasingly socially marginalized constituency of many millions. (shrink)

In late-nineteenth-century economics, there was an epoch-defining shift from the labour theory of value to the marginal utility theory of value. According to the latter, the economic value of some circumstance (obtaining some good, some service, and so on) is its subjective utility at the margin. Thus, while there is an absolute sense in which I prefer having water to having diamonds, at the present moment I value one more unit of diamonds more than I value one (...) more unit of water. That is why I am willing to pay a higher price for a bowl of diamonds than a bowl of water of the same size, even though water is ‘more valuable’ in a sense. While the marginalists resolved a large array of anomalies that had troubled the labour theory of value, they also believed that utility should be measurable if their theory was to be scientifically respectable. Taking this shift as his starting point, Ivan Moscati has provided a well-written, thorough, and insightful account of the history of utility measurement from 1870 to 1985. (shrink)

David Shoemaker has claimed that a binary approach to moral responsibility leaves out something important, namely instances of marginal agency, cases where agents seem to be eligible for some responsibility responses but not others. In this paper we endorse and extend Shoemaker’s approach by presenting and discussing one more case of marginal agency not yet covered by Shoemaker or in the other literature on moral responsibility. Our case is that of Kenneth Parks, a Canadian man who drove a (...) long way to his mother-in-law’s and killed her in a state of somnambulism. We support our claim about Parks’ marginal responsibility in three steps: we first deny that Parks acts involuntarily as traditionally claimed in the legal literature; we then propose to extend Shoemaker’s analysis of marginal responsibility based on quality of will so as to include two other dimensions: the moral status of the agent and the actual causal effects of their actions; finally, we distinguish Parks’ marginal responsibility from four other existing concepts: “tracing”, diminished responsibility, causal responsibility, and moral disapproval without responsibility. (shrink)

Using an international sample of environmental and social firm-level ratings between 2007 and 2019, we form synthetic overlapping region-based equity portfolios to examine the impact of screening stringency on abnormal returns and specific risk. While previous literature analyzes this relationship in a bidimensional setting, inferences made in this study are additionally robust to regional levels of market efficiency. Our results suggest that (1) screening stringency displays an inverted curvilinear relationship with risk-adjusted returns and (2) the impact on specific risk is (...) strictly increasing. Thus, portfolios that employ marginal and substantial screening incur the cost of responsible investing. However, moderate screening has the benefit of increasing performance without the burden of financing the least responsible corporations. (shrink)

In this paper, I examine how advocates seek to improve the well-being of recipients who reside in organizations or systems of care in which factors influencing risk and jeopardy prevail. I use data from multiple action research projects to frame what I call ‘the advocate's compromise’: in systems and organizations regulating people who are considered vulnerable or dependent the advocate must advance collaborative relationships with care providers and supervisors so they become allies in advancing the well being of their charges. (...) I place the advocate's compromise in context by amplifying a theory of diminished status, which offers a rationale for advocacy in social work. By identifying variation in its forms I illuminate the richness of advocacy practice in which the compromise is readily observable. In considering the context influencing the practice of advocacy in social work, I elaborate central aspects of the compromise, and reveal some of its ethical demands. Finally, I delineate principal strategies and tactics I have observed advocates employ to make the compromise a useful tool, particularly in total institutions, so incremental and limited advancements can make marginal improvements to a recipient's well-being without threatening the regulatory regime of care or supervision. (shrink)

This paper presents the experimental results of a “Transcontinental Ultimatum Game” implemented between India and France. We use a standard ultimatum game, but in one treatment Indian subjects made offers to French subjects (ItoF treatment) and, in another treatment, French subjects made offers to Indian subjects (FtoI treatment). We observed that FtoI treatment bargaining mostly ended up with unequal splits of money in favor of French, while nearly equal splits were the most frequent outcome in ItoF treatment interactions. The experimental (...) results are organized through a standard social reference model, modified for taking into account the different marginal value of money for bargainers. In our model bargaining is driven by relative standings comparisons between players, occurring in terms of real earnings (that is monetary earnings corrected for a purchasing power factor) obtained in the game. The norm of equity behind the equalization of real earnings is called local equity norm, and contrasted to a global equity norm which would encompass the wealth of players beyond the game. According to what we observed, no beyond-game concern seems to be relevantly endorsed by subjects. (shrink)

Philosophical views of responsibility often identify responsible agency with capacities like rationality and self-control. Yet in ordinary life, we frequently hold individuals responsible who are deficient in these capacities, such as children or people with mental illness. The existing literature that addresses these cases has suggested that we merely pretend to hold these agents responsible, or that they are responsible to a diminished degree. In this paper, I demonstrate that neither of these approaches is satisfactory, and offer an alternative focused (...) on the role relationships play in determining whether it is appropriate to hold someone responsible. I argue that relationships are sources of normative expectations about how parties in that relationship ought to behave, and that we can be responsible in virtue of being subject to these norms. This is so, not only for those who are impaired or immature, but for all of us. (shrink)

Perceived discrimination has consistently been shown to be associated with diminished mental health, but the psychological processes underlying this link are less well understood. The present series of four studies assessed the role of a history traumatic events in generating a proliferation of discrimination stressors and threat appraisals, which in turn predict psychological distress (depressive and posttraumatic stress symptoms) (mediation model), or whether prior traumatic events sensitize group members, such that when they encounter discrimination, the link to stress-related symptoms is (...) heightened (moderation model). Each of the studies assessed a different marginalized group in Canada, including Indigenous peoples, Blacks, Jews, and a diverse sample of women. Participants completed measures assessing history of traumatic events, perceived explicit and ambiguous discrimination, discrimination threat appraisals, and symptoms of depression and posttraumatic stress. The four populations varied in their experiences, with Indigenous peoples encountering the highest levels of trauma, discrimination, and psychological distress symptoms. A mediated model was evident among Indigenous peoples and women, possibly reflecting the role of systemic processes that engender discrimination when traumatic events are experienced. There was evidence for a moderating role of a history of traumatic events on the relations between discrimination and depressive symptoms among Jewish and Black participants. Although the hypothesized synergistic effects of traumatic experiences were noted when assessing the relation between perceived discrimination and depressive symptoms among Jews, the presence of trauma blunted these relations among Blacks. The results suggest that trauma-informed approaches to addressing stress-related processes and psychological outcomes need to consider the unique social context of members of various socially marginalized groups. (shrink)

This paper merges the non-expected utility approach (Tversky and Kahneman, J Risk Uncertain 5:297–323, 1992 and Quiggin, J Econ Behav Organ 3:323–343, 1982) into Akerlof’s (Quart J Econ 84:488–500, 1970) model of Market for Lemons. We derive the results for different probability weighting functions and analyze the phenomenon of market failure in light of non-expected utility maximization. Our main finding suggests that when the proportion of traded lemons is high (low), the problem of market failure is mitigated (enhanced). (...) In addition, for the case of Cumulative Prospect Theory, we show that (a) the higher the loss aversion is, the more pronounced is the market failure; (b) gain-domain elevation is negatively related to the extent of market failure; and (c) the value function is (i) negatively monotonic in the gain-domain diminishing sensitivity parameter when the market is characterized by a high proportion of “peaches,” and (ii) positively monotonic in the loss-domain diminishing sensitivity parameter when the market is characterized by a high proportion of “lemons.”. (shrink)