Anti-preferences

This Article offers a critical evaluation of preference satisfaction as a frame for normative thinking. It begins with an internal critique of the way preferences work in normative economics, distinguishing among three elements: welfare; preferences; and choices. For preference satisfaction to work well, it must be able to bridge two gaps, one between choice and preferences, and another between preferences and welfare. In contexts where both those gaps are bridged, preference satisfaction offers a workable normative framework; where at least one of those gaps is unbridgeable, the framework should be treated with extreme caution if not jettisoned altogether. The Article then goes on to pursue an external critique, by asking what price we pay for using the preference satisfaction framework when it appears to perform well. The point of the critique is that even when preference satisfaction provides a good normative framework on its own terms, the framework obscures considerations that should not be ignored. By pursuing one concrete example, the Article shows how broad considerations regarding the implications of the regime of wage labor are absent from legal contemplation when labor law is imagined and shaped through the lens of preference satisfaction. The Article concludes with a speculation about how different theories of welfare might be employed in concert, rather than as alternatives. It suggests that a pluralism of theory is a way to expose the political stakes in the kinds of policy discussion where preference satisfaction is often a dominant way of thinking.

How Hayekian is Sunstein's behavioral economics?

I comment on Sunstein's paper proposing ‘Hayekian behavioural economics’. In essence, Sunstein is merely renaming a familiar approach to normative economics, initiated in Sunstein and Thaler's seminal 2003 paper. I argue that this approach cannot fairly be described as in the spirit of Hayek's work. Sunstein's approach is based on a ‘constructivist’ conception of rationality that Hayek consistently criticized. Although both Hayek and Sunstein address ‘knowledge problems’, the two problems are fundamentally different. I develop what I claim are truly Hayekian critiques of Sunstein's claim that fuel economy mandates can be more Hayekian than carbon taxes.

The Community of Advantage

This is an interview by the Erasmus Journal for Philosophy and Economics (EJPE) with Robert Sugden. The interview covers the intellectual trajectory of Sugden, from his early critique of Amartya Sen’s liberalism, to his interactions with James Buchanan and his contributions to behavioural economics. A major theme in the interview is Sugden’s development of a rival program of normative economics based on modern behavioural economics. The interview also discusses Sugden’s recent book The Community of Advantage which synthesizes many of the themes he worked on.