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 contributing to determine 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)

This paper rigorously examines the primitive foundations of economic reasoning through an original framework based on symbolic logic. Extending previous work, it formalizes economic conceptions (\(\mathbb{C}\)), symbols (\(s_i\)), and introduces a structured language (\(\mathcal{L_{\mathbb{C}}}\)) to define their formation and interpretation. Organized as a continuous chain of declarations and illustrations, the paper offers a concise, systematic approach to understanding the philosophy of economic reasoning through formal representations.

This book concentrates upon how economic rationalities have been embedded into particular historical practices, cultures, and moral systems. Through multiple case-studies, situated in different historical contexts of the modern West, the book shows that the development of economic rationalities takes place in the meeting with other regimes of thought, values, and moral discourses. The book offers new and refreshing insights, ranging from the development of early economic thinking to economic aspects and concepts in the works of (...) classical thinkers such as Thomas Hobbes, John Locke and Karl Marx, to the role of economic reasoning in contemporary policies of art and health care. With economic rationalities as the read thread, the reader is offered a unique chance of historical self-awareness and recollection of how economic rationality became the powerful ideological and moral force that it is today. (shrink)

Much work in economics, the social sciences, and elsewhere takes as it starting oint a somewhat unrealistic conception of rationality- a conception that ignores or downplays both the temporal and the situated aspects of human reason. Biological reason, I shall argue, is better concieved as an iterated process of adaptive response made under extreme time pressure and exquisitely keyed to a variety of external structures and circumstances.

The ArgumentIn this paper I argue first that Marx's Critique of Political Economy employs “critique” in the Kantian meaning of the term—i.e., determining the domain of legitimate application of the categories involved and maintaining that outside these borders understanding is led into error and entangled in metaphysics.According to Marx, his predecessors in political economy transgressed these boundaries of application, and therefore conceived of all different modes of production as being essentially similar to commodity production, and thus implied that commodity production (...) and the bourgeois form of life corresponding to it are “natural” not historical and transitory. In Marx's conception there are no super-historical economic categories or laws.I argue moreover that Marx's methodology of reconstructing the “development” of socioeconomic entities and categories from their “germ” or “cell” also serves his critical intention. Whereas social theorists of the time referred with organic metaphors to human collectives, Marx referred with such metaphors to economic entities only. The difference is crucial, since the first carries deterministic consequences for the development of society while the latter does not: Social form and historical development in Marx are contingent and not necessary, historical and not natural, transitory and not eternal.I also stress that Marx's procedure of critique is internal. He uses only such assumptions, observations, and arguments as could in principle also be used by the scholars criticized. Nevertheless the outcome of the critique is not merely a new theory but an entirely different one — i.e., a historical conception of the discipline of political economy and of its laws. (shrink)

This bookis about the roots of managerial rationality. A theoretical base, founded on the concept of 'memetics' is developed in order to explain human thinking and human reason as products of cultural evolution. Cultural change and development are explained by simple, value-driven memetic mechanisms like 'ritualization' and 'extremization'.

Economic analysis presents climate change as a collective action problem, a market failure, or a problem about the allocation or distribution of property rights. Mark Sagoff argues that it is none of these. Economic theory cannot provide a useful way—either a model, method, or metaphor—to think about climate change. The reasons to reduce greenhouse gases are not economic, but ethical.

The European post-Marxist work Empire by Hardt and Negri points to the theological/metaphysical underpinnings of modernity and global capitalism in the medieval shift from Trinitarian orthodoxy to nominalism. Though Hardt and Negri reject religious or transcendental approaches to the social, their work shows remarkable resemblances with the ontological critique of modernity and economism mounted by John Milbank and Stephen Long among others. By contrast the considerable oeuvre of Ronald Preston on capitalism lacks a deep ontological critique. The return of ontology (...) to theological economics in recent contributions from Gorringe, Long, Milbank and Northcott marks a significant recovery of a more theological orthodoxy, but also a more thoroughgoing critique of economism whether in capitalist or socialist guise. It is moreover a critique which highlights the significance of the economic actions of churches and Christians. (shrink)

The debate over whether or not economics is value-free has focused on the fact-value distinction: “is” does not imply “ought.” This paper approaches the role of ethics in economics from a Thomistic perspective, focusing not on the content of economic analysis, but on the actions taken by economic researchers. Positive economics, when it satisfies Aristotle's definition of technique, enjoys a certain autonomy from ethics, an autonomy limited by a technique's dependence for guidance and justification on ethical reflection. The (...) modern isolation of technique from ultimate ends entails the risk of mistaking the proximate ends of economics for ultimate ends, especially when applying economic methods in new ways or to new social phenomena. (shrink)

This article explores both how the debtor became a key actor in contemporary society and relatedly how indebtedness went from being a deplorable, exceptional condition to be avoided to a normal everyday precondition of modern life. Personifying the credit side of futurity, possibilities, enjoyment or accumulation, the debtor is an ambivalent and precarious actor, never an end unto itself, but always a means to something else. The debtor is always embedded in cautionary tales. She or he needs to redeem and (...) discipline her-/himself to become economically sound and accepted within the free market order. In line with this, while crucial for the functioning of neoliberal society, the debtor has not been a project or focus of neoliberal theory. This article explores how the debtor – despite debt being a prominent part of neoliberalism, was not theorized by neoliberals but by their critics both within academia and in activist circles. (shrink)

Network analysis is increasingly appreciated as a methodology in the social sciences. In recent years, it is also receiving attention among historians of science. History of economics is no exception in that researchers have begun to use network analysis to study a variety of topics, including collaborations and interactions in scientific communities, the spread of economic theories within and across fields, or the formation of new specialties in the discipline of economics. Against this backdrop, a debate is emerging about (...) how network analysis can help address questions that are pertinent to the history of economics. With this paper, we want to push this debate one step forward by offering and discussing five reasons why network analysis should have a future in the history of economics. (shrink)

This book challenges the hegemonic view that economic calculation represents the ultimate rationality. The West legitimises its global dominance by the claim to be a rational, democratic, science-based and progressive civilisation. Yet, over the past decades, the dogma of economic rationality has become an ideological black hole whose gravitational pull allows no public debate or policy to escape. Political leaders of all creeds are held in its orbit and public language is saturated by it. This dogma has pervaded (...) all spheres of life, ushering the age of post-rationality, especially in English speaking countries. The authors discuss several aspects of post-rational global capitalism still dominated by the Anglosphere: hyper-competition, hyper-consumption, inequality, volatile global financial markets, environmental degradation and the unforeseen effects of the internet-mediated communication revolution. The book concludes by discussing some utopian and dystopian future scenarios and asking whether the West can transcend its crisis of rationality. (shrink)

(2005). Economic Rationality vs. Ethical Reasonableness: The Relevance of Law and Economics for Legal Ethics. Legal Ethics: Vol. 8, No. 1, pp. 107-116.

Network analysis is increasingly appreciated as a methodology in the social sciences. In recent years, it is also receiving attention among historians of science. History of economics is no exception in that researchers have begun to use network analysis to study a variety of topics, including collaborations and interactions in scientific communities, the spread of economic theories within and across fields, or the formation of new specialties in the discipline of economics. Against this backdrop, a debate is emerging about (...) how network analysis can help address questions that are pertinent to the history of economics. With this paper, we want to push this debate one step forward by offering and discussing five reasons why network analysis should have a future in the history of economics. (shrink)

Economists reason causally. Like many other scientists, they aim at formulating justified causal claims about their object of study. This thesis contributes to our understanding of how causal reasoning proceeds in economics. By using the research on the causes of unemployment as a case study, three questions are adressed. What are the meanings of causal claims? How can a causal claim be adequately supported by evidence? How are causal beliefs affected by incoming facts? In the process of answering these (...) semantic, epistemic and dynamical questions, the richness of causal reasoning in economics is brought to the foreground. In the part on semantics, it is argued that the meaning of causal generalizations in policy-oriented economics is best captured by using the concept of ‘inferential relation’ rather than the one of ‘referential relation’. This part contributes to develop an inferentialist semantics by distinguishing among types of inferential relations. In the part on epistemology, it is argued that justification in sciences like economics often relies, and ought to rely, on evidential variety―i.e. the combination of evidence from multiple sources. An interpretation of independence among evidential sources is offered: two evidential sources are fully independent if and only if the reasons why they would be unreliable do not overlap. It is then shown that the variety-of-evidence thesis does not hold under extreme circumstances. The part on dynamics focuses on deviant-case study. A storyline is provided for what deviant-case study aims at and how it proceeds in what is characterized as an ‘eclectic science’. (shrink)

In the standard analysis of economic institutions--which include social conventions, the working rules of an economy, and entitlement regimes --economists invoke the same theories they use when analyzing individual behavior. In this profoundly innovative book, Daniel Bromley challenges these theories, arguing instead for "volitional pragmatism" as a plausible way of thinking about the evolution of economic institutions. Economies are always in the process of becoming. Here is a theory of how they become. Bromley argues that standard economic (...) accounts see institutions as mere constraints on otherwise autonomous individual action. Some approaches to institutional economics--particularly the "new" institutional economics--suggest that economic institutions emerge spontaneously from the voluntary interaction of economic agents as they go about pursuing their best advantage. He suggests that this approach misses the central fact that economic institutions are the explicit and intended result of authoritative agents--legislators, judges, administrative officers, heads of states, village leaders--who volitionally decide upon working rules and entitlement regimes whose very purpose is to induce behaviors that constitute the sufficient reasons for the institutional arrangements they create. Bromley's approach avoids the prescriptive consequentialism of contemporary economics and asks, instead, that we see these emergent and evolving institutions as the reasons for the individual and aggregate behavior their very adoption anticipates. These hoped-for outcomes comprise sufficient reasons for new laws, judicial decrees, and administrative rulings, which then become instrumental to the realization of desired individual behaviors and thus aggregate outcomes. (shrink)

The article is built around the analysis of The critique of instrumental reason by Horkheimer, applied to issues connected with the philosophy of economics. Positive economics is under-stood as an example of a discipline where the pragmatic paradigm has been implemented. Therefore, economics functions within the boundaries of what Horkheimer called instrumental rationality. The starting point is the intellectual source shared by economics and the Frankfurt School, namely Kant’s philosophy of rationality. In the first part of the article, three of (...) Kant’s ideas that are fundamental to economics are presented, and then the development of their application in philosophy of science, as seen by Horkheimer in 1947, is laid out. The second part of the article consists of enumerating various distinctive features of economics that set it apart from other social sciences and which constitute factors for which it can be considered a realm of the reign of ‘instrumental rationality’, with all the threats such an approach provokes. The above-mentioned features concentrate on treating humans in economics as a means, not as a goal. This aspect of the philosophy of science of the Frankfurt School (unlike its critique of capitalism as an economic system) has not been widely received. (shrink)

Many participants in the debate over the current state and recent developments of economics make claims that are unrefined, simplistic, often exaggerated. This is understandable: the stakes are high, the issues trigger emotional responses, and few participants are motivated or equipped to seek more nuanced analyses. To assert, or to deny, that economics as a scientific discipline or a particular part of it (such as a model) is about reality – or refers to reality, represents it, is true about it, (...) or is truthlike about it – is to make a very complex and highly ambiguous claim. 1 The disputants often make claims that have parallels in the philosophical controversy between scientific realists and their opponents, or at any rate those claims can be partly analyzed in terms of some of the arguments presented in this philosophical controversy. The question addressed here is whether realism about economics is a viable position. The argument proceeds by way of refuting a number of arguments against realism about economics. I suggest a genuine controversy over the factuality of any particular strand or piece of economics requires realism as a general interpretation of economics – or at any rate requires debunking the anti-realist arguments discussed below. “The issue of realism” as most economists would recognize it, is not exactly the issue of realism as philosophers recognize it. “The issue of realism” in economics is about realisticness as a property of theories , while (part of) the issue of realism in philosophy is about realism as a theory of theories . But some parts of the issue of realisticness (such as those related to reference and truth) in economics can be translated into aspects of the issue of realism as a theory of theories. Thus there is also an issue of realism (with no quotation marks) in economics. It is this issue of realism that has to be settled as a prerequisite for critical assessments of important forms of realisticness of economic theories. (shrink)

Psychologists have a long tradition of studying human behavior, strengths and weaknesses, biases and limitations. Economists have constructed normative frameworks that capture the most important elements of human decision-making and developed powerful tools to determine individual and strategic choices in a variety of situations. Only recently have their strengths been combined and economic models enriched with key ingredients found in psychological studies.This volume covers four of the most important themes in this interdisciplinary field: feelings, inconsistencies, limitations and biases. Each (...) chapter contributes to a more comprehensive and accurate modelling and description of human behavior. Its four parts cover: the origins, formation, and evolution of beliefs; consistency, commitment, and intertemporal separability of dynamic choices; attention, preference formation, and risk evaluation in limited cognition; and affective behaviour, specifically the role of emotions in decision making. (shrink)

Abstract: Collective Intentionality is essential to the understanding of how we act as a "team". We will offer an overview on the contemporary debate on the sense of acting together. There are some theories which focus on unconscious processes and on the capabilities we share with animals (Tomasello, Walther, Hudin) and others which concentrate on the voluntary, conscious processes of acting together (Searle, Tuomela, Bratman, Gilbert). Collective intentionality represents also a relevant issue for economic theories. The theories of team (...) reasoning move from the assumption that agents can sometimes behave according to beliefs and preferences attributed to a group or a team. We will point out the role of institutions as created by collective intentionality (Searle) for understanding coordination and cooperation. (shrink)

Today the economic diagram is employed universally in teaching and research by professional economists. Yet the history of its construction shows that much that has been regarded as distinctive of twentieth-century visual culture was prefigured in the nineteenth. This paper will place the construction of the first economic diagrams by Alfred Marshall in the context both of contemporary visual technologies developed in other moral sciences, and of his wider theory of industrial production. The paper will argue that an (...) understanding of the background to the historical graphs, constructed by the Cambridge political economist from the late 1860s onwards, will necessitate a revision of the narrative of modern visual reasoning, as recently advanced by Lev Manovich. (shrink)

Economics has long been the ‘dismal science’. The crisis in classical political economy at the end of the nineteenth century produced radically differing intellectual responses: Marx’s reconstitution of value theory on the basis of his dialectical method, the marginalists’ development of subjective value theory, and the historical school’s advocacy of inductive and historical reasoning. It is against this background that economics was established as a discrete academic discipline, consciously modelling itself on maths and physics and developing its focus on (...) theorising exchange. This entailed extraordinary reductionism, with humans regarded as rational, self-interested actors, and class, society, history and ‘the social’ being excised from economic analysis. On the basis of this narrowing of its concerns, particularly from the 1980s onwards, economics has sought to expand its sphere of influence through a form of imperialism which seeks to apply mainstream economic approaches to other social sciences and sees economics as ‘the universal grammar of social science’. The implications of this shift are discussed in Ben Fine and Dimitris Milonakis’s two volumes, where they analyse the fate of the social, the political and the historical in economic thought, and assess the future for an inter-disciplinary critique of economic reason. (shrink)

This article aims to defend a novel account of pluralism in economics. First, it argues that what justifies pluralism is its epistemological benefits. Second, it acknowledges that pluralism has limits, and defends reasonable pluralism, or the view that we should only accept those theories and methods that can be justified by their communities with reasons that other communities can accept. Clearly, reasonable pluralism is an ideal, which requires economists of different persuasions to respect certain norms of communication while evaluating each (...) other’s theories. The article ends with a discussion of the conditions under which reasonable communication becomes possible. (shrink)

This book presents a detailed economic analysis of professional football at club level, using a combination of economic reasoning and statistical and econometric analysis. Most of the original empirical research reported in the book is based on English club football. A wide range of international comparisons help emphasize both the broader relevance as well as the unique characteristics of the English experience. Specific topics include: the links between football clubs' financial strength and competitive balance and uncertainty of (...) outcome; the determinants of professional footballers' compensation; measuring the football manager's contribution to team performance, the determinants of managerial change, and its effects on team performance; patterns of spectator demand for attendance; predicting match results, betting on football, and the market in football clubs' company shares. The book concludes with an extended discussion of the major economic policy issues currently facing football's legislators and administrators worldwide. (shrink)

Critics of Rawls's A Theory of Justice frequently envision his original position as containing a human consciousness. Thus, the re- strictions Rawls introduces for this ‘individual’—the lack of particular circumstantial and personal information—is considered a potential problem. The very ways in which Rawls circumscribes the knowledge available in this position is thought to compromise the personhood of the individual there, and hence as well the conclusions reached (that is, Rawls’s two principles). This paper will argue that, on the contrary, the (...) lack of full personhood is a critical part of Rawls’s modeling strategy, and that Rawls borrowed this particular sense of modeling from eco- nomics. It is well known that Rawls worked to verse himself in economic theory, and it is difficult to overlook its use in Theory. It will be argued that it is through parallels with economic reasoning that Rawls’s original position model can be most fruitfully understood. (shrink)

Cost-benefit analysis--applying economic reasoning to increasingly complex health policy decisions--continues to be a source of vehement disagreement among its practitioners. re than merely technical issues in measurement and accounting are involved; basic social values embedded in different intellectual traditions are coming into conflict. The "human capital" and "willingness-to-pay" approaches can each aid policy formulation, but neither can substitute for open political process.

The first work to seriously and successfully bridge twentieth century economics and philosophy. Subroto Roy draws these two disciplines together and examines the intellectual roots of economics.

This eagerly anticipated new book from Tony Lawson contends that economics can profit from a more explicit concern with ontology than has been its custom. By admitting that economics is not exactly a picture of health at the moment, Lawson hopes that we can move away from the bafflingly intransigent belief that economics is at its core reliant upon mathematical modelling. This maths-envy is the reason why economics is in a state of such disarray. Far from being a polemic against (...) the mainstream, this excellent new book is concerned that if economics is to be saved from itself then there must be a realistic dialogue between the classical heterodox fields. Of interest to philosophers, sociologists and social scientists as well as economists, this comprehensive, logical book is a vital contribution to an important debate. (shrink)

How has reason, believed since the Enlightenment to be the ally of freedom in the search for a better, more humanly satisfying world, been reduced to a technical rationality that has actually impoverished the bases of human freedom? What might be the options and obligations for sociologists who wish to restore reason to its proper status? -/- Working within the tradition of C. Wright Mills and Jurgen Habermas, Frank Hearn sets out to answer these questions. He surveys the treatment of (...) the relation between reason and freedom in both the classical tradition (especially the writings of Saint-Simon, Comte, Durkheim, Marx, Weber, and Freud) and an increasingly significant segment of social thought and criticism (and, for example, in the contrasting visions of Daniel Bell and Christopher Lasch.) He then analyses both the concrete social and historical forms of expression taken by what Mills calls 'rationality without reason' and their impact on individual autonomy and the freedoms associated with democratic politics. Finally, he develops Mills's and Habermas's claims that the cultivation of democratic publics and a critical social theory committed to a vibrant public life are indispensable to the protection and revitalization of the values of reason and freedom and of the practices they entail. -/- This book updates and enriches Mills's influential argument by demonstrating its affinity with critical theory, by showing its contributions to a critical understanding of the classical tradition, and by showing its implications for contemporary social, political, and economic developments. (shrink)