In a school choice problem, each school has a priority ordering over the set of students. These orderings depend on criteria such as whether a student lives within walking distance or has a sibling at the school. A priority ordering provides a ranking of students but nothing more. I argue that this information is sufficient when priority is based on merit but not when priority is based on criteria such as walking distance. I propose an extended formulation of the problem wherein a ‘priority matrix’, indicating which criteria are satisfied by each student-school pair, replaces the usual priority orderings.

Behavioural public policy (BPP) has come under fire by critics who claim that it is illiberal. Some authors recently suggest that there is a type of BPP – boosting – that is not as vulnerable to this normative critique. Our paper challenges this claim: there's no non-circular way to draw the distinction between nudge and boost that would make the normative difference required to infer the permissibility of a policy intervention from its type-membership. We consider two strategies: paradigmatic examples and causal mechanisms. We conclude by sketching some suggestions about the right way to approach the normative issues.

A defining characteristic of a liberal democratic society is the assignment of basic rights and liberties that protect each person's private sphere. Hence, social choice made in a liberal democratic society must at the very least be consistent with the exercise of each person's basic rights. However, even when everybody agrees to this basic principle, there could still remain irreconcilable social conflict and disagreement when it comes to the specific assignment of basic rights. This is especially so in a pluralistic society where there is a clash among radically different and incompatible world views. Philosophers have now started to focus on this issue, which now goes by the name 'perspectival diversity'. This paper extends the basic social choice theoretic framework of liberal rights by enlarging the domain to include individual perspectives alongside individual preferences. In this new framework, different individuals are able to see or perceive the same social alternative differently based on their own unique perspectives. The formal results of the paper imply that generating a viable social choice that is consistent with the assignment of basic rights can quickly break down once we start to increase the level of perspectival diversity in society.

Recent debates on the nature of preferences in economics have typically assumed that they are to be interpreted either as behavioural regularities or as mental states. In this paper I challenge this dichotomy and argue that neither interpretation is consistent with scientific practice in choice theory and behavioural economics. Preferences are belief-dependent dispositions with a multiply realizable causal basis, which explains why economists are reluctant to make a commitment about their interpretation.

The standard, Bayesian account of rational belief and decision is often argued to be unable to cope properly with severe uncertainty, of the sort ubiquitous in some areas of policy making. This paper tackles the question of what should replace it as a guide for rational decision making. It defends a recent proposal, which reserves a role for the decision maker’s confidence in beliefs. Beyond being able to cope with severe uncertainty, the account has strong normative credentials on the main fronts typically evoked as relevant for rational belief and decision. It fares particularly well, we argue, in comparison to other prominent non-Bayesian models in the literature.

How should consumers exercise their basic economic powers? Recently, several authors have argued that consumption to bring about social change must be democratic. Others maintain that we may consume in ways that we believe promote positive change. This paper rejects both accounts and provides a new alternative. It argues that, under just institutions, people may consume as they like as long as they respect the institutions’ rules. Absent just institutions, significant moral constraints on consumption exist. Still, it is permissible, if not obligatory, for people to pursue non-democratic, genuinely positive, change within whatever moral constraints exist.

Proponents of evidence-based policy (EBP) call for public policy to be informed by high-quality evidence from randomized controlled trials. This methodological preference aims to promote several epistemic values, e.g. rigour, unbiasedness, precision, and the ability to obtain causal conclusions. I argue that there is a trade-off between these epistemic values and several non-epistemic, moral and political values. This is because the evidence afforded by standard EBP methods is differentially useful for pursuing different moral and political values. I expand on how this challenges ideals of value-freedom and -neutrality in EBP, and offer suggestions for how EBP methodology might be revised.

The distinction between brute luck and option luck is fundamental for luck egalitarianism. Many luck egalitarians write as if it could be used to specify which outcomes people should be held responsible for. In this paper, I argue that the distinction can’t be used this way. In fact, luck egalitarians tend to rely instead on rough intuitive judgements about individual responsibility. This makes their view vulnerable to what’s known as the neutrality objection. I show that attempts to avoid this objection are unsuccessful. I conclude that until it provides a better account of attributing responsibility, luck egalitarianism remains incomplete.

Building on an overview of dual systems theories in behavioural economics, the paper presents a methodological assessment in terms of the mechanistic explanations framework that has gained prominence in philosophy of the neurosciences. I conclude that they fail to meet the standards of causal explanations and I suggest an alternative ‘dual functions’ view based on Marr’s methodology of computational neuroscience. Recent psychological and neuroscience research undermines the case for a categorization of brain processes in terms of properties such as relative speed. I defend an interpretation of dualities as functional, without assigning them to specific neurophysiological structures.

Whereas many others have scrutinized the Allais paradox from a theoretical angle, we study the paradox from an historical perspective and link our findings to a suggestion as to how decision theory could make use of it today. We emphasize that Allais proposed the paradox as a normative argument, concerned with ‘the rational man’ and not the ‘real man’, to use his words. Moreover, and more subtly, we argue that Allais had an unusual sense of the normative, being concerned not so much with the rationality of choices as with the rationality of the agent as a person. These two claims are buttressed by a detailed investigation – the first of its kind – of the 1952 Paris conference on risk, which set the context for the invention of the paradox, and a detailed reconstruction – also the first of its kind – of Allais’s specific normative argument from his numerous but allusive writings. The paper contrasts these interpretations of what the paradox historically represented, with how it generally came to function within decision theory from the late 1970s onwards: that is, as an empirical refutation of the expected utility hypothesis, and more specifically of the condition of von Neumann–Morgenstern independence that underlies that hypothesis. While not denying that this use of the paradox was fruitful in many ways, we propose another use that turns out also to be compatible with an experimental perspective. Following Allais’s hints on ‘the experimental definition of rationality’, this new use consists in letting the experiment itself speak of the rationality or otherwise of the subjects. In the 1970s, a short sequence of papers inspired by Allais implemented original ways of eliciting the reasons guiding the subjects’ choices, and claimed to be able to draw relevant normative consequences from this information. We end by reviewing this forgotten experimental avenue not simply historically, but with a view to recommending it for possible use by decision theorists today.

Corporations cannot exist, scholars rightly note, without being constituted by government. However, many take a further step, claiming that corporations are normatively distinct from other market actors because of this governmental provenance. They are mistaken. Like corporations, markets and contracts also require government for their creation. Governmental provenance does not distinguish corporations normatively because our coercive social institutions are pro tanto justified in re-arranging both corporate and non-corporate market activities on behalf of social and political values. The corporation is distinct only practically and prudentially, in that it represents a more proximate instrument for effecting morality in the economy.

Richard Thaler and Cass Sunstein (T/S) have defended ‘nudges’ aimed at smoking, overeating, etc. as a ‘means’ paternalism that leaves its targets ‘better off as judged by themselves’. Their libertarian critics have charged that these behaviours are often perfectly rational and that the nudges would ‘impose’ on their targets ‘ends’ that they reject. This paper argues that whether or not the behaviours are rational is difficult to say, but the critics are right in claiming that T/S fail to take seriously their targets’ true preferences. This is evident, in particular, in Sunstein's recent reply to an ‘autonomy objection’ to nudging. The upshot is that the nudging paternalism T/S support cannot be defended as a means paternalism that is deferential to its targets’ own ends or values. The only way to defend it is via a ‘prudential’ paternalism that, given the preferences of many of its targets, will often be ‘ends’ paternalism.

According to an influential argument in business ethics and economics, firms are normatively required to maximize their contributions to social welfare, and the way to do this is to maximize their profits. Against Michael Jensen's version of the argument, I argue that even if firms are required to maximize their social welfare contributions, they are not necessarily required to maximize their profits. I also consider and reply to Waheed Hussain's ‘personal sphere’ critique of Jensen. My distinct challenge to Jensen seems to me fatal to any view according to which firms are normatively required to maximize their profits.

One view of practical reasoning is that it involves the weighing of reasons. It is not clear, however, how the weights of reasons combine, especially given the logical and substantive relations among different reasons. Nor is it clear how the weighing of reasons relates to decision theoretic maximization of expected value. This paper constructs a formal model of reasons and their weight in order to shed light on these issues. The model informs philosophical debates about reasons, such as the question of whether reasons or values are more fundamental and the opposing doctrines of atomism and holism about reasons.

Economists and philosophers disagree about the concept of choice used in economics. Some behavioural economists argue that economic models of choice will improve as they become more and more psychologically realistic. Don Ross argues that this argument fails because its hidden assumption – that the economic concept of choice is the same as the psychological counterpart – is false. Ross conjectures that the economic concept of choice concerns a population-scale pattern of behavioural changes in response to incentives. We conduct a survey experiment to test two predictions that Ross’s conjecture generates. The statistical analysis of our data confirms our predictions, although with some qualifications. In interpreting our results, we distinguish two versions of commonsensible realism, strong and weak, and propose the weak one as a plausible explanation of our results. Weak commonsensible realism also produces further testable hypotheses. Some methodological implications of our study are discussed.

Popper’s ‘Situational Analysis’ (SA) constitutes his methodological proposal for the social sciences. We claim that the two hallmarks of SA are: (i) that scientists assume they possess a ‘wider’ view of the problem-situation than actors do, and (ii) use the model as an ideal ‘benchmark’ scenario to identify the deviation of actors’ actual behaviour from the former. We argue that SA is not a generalization of the neoclassical theory of individual behaviour but captures instead the methodology adopted by modern behavioural economists. Last, we argue that SA highlights a way of acquiring knowledge that has gone unnoticed in the literature.

While Bayesian methods are widely used in economics and finance, the foundations of this approach remain controversial. In the contemporary statistical literature Bayesian Ockham’s razor refers to the observation that the Bayesian approach to scientific inference will automatically assign greater likelihood to a simpler hypothesis if the data are compatible with both a simpler and a more complex hypothesis. In this paper I will discuss a problem that results when Bayesian Ockham’s razor is applied to nested economic models. I will argue that previous responses to the problem found in the philosophical literature are unsatisfactory and develop a novel reply to the problem.

Decision theorists have suggested that it is sometimes appropriate to represent the value of certain options as intervals of real numbers. In this note I show that doing so is incompatible with some deeply held intuitions about rational choice.

One of the most prevalent rationales for public healthcare policies is a human right to healthcare. Governments are the typical duty-bearers, but they differ vastly in their capacity to help those vulnerable to serious health problems and those with severe disabilities. A right to healthcare is out of the reach of many developing economies that struggle to provide the most basic services to their citizens. If human rights to provision of such goods exist, then governments would be violating rights without doing anything wrong. I argue that such variable ability to provide healthcare depends not only on financial resources, but on institutional capacity, and that the latter represents a more fundamental challenge to the existence of a human right to healthcare than previously recognized. This challenge does not imply that government has no obligations to protect and improve the health of their citizens, but that it is best to think of such obligations as generated by conventional rights, namely rights arising from local legal and social conventions, which require governments to pursue health-related moral goals such as reducing suffering, closing opportunity gaps for the disadvantaged, and preventing the spread of contagious diseases. We need not think of such moral goals in terms of human rights.