What Good Markets Are Good ForTowards a Moral Justification of Free Markets
Virtues and Their Role in Making Markets Contribute to Well-Being (C)
Given what we know about the ultimate goal of markets (project A) and about well-being / human flourishing (project B), this third part of our project (C) investigates what virtues are required from key market actors to make the positive relationship between markets and human flourishing come through.
“Game theory, human nature and free markets” – Eric van Damme about his contribution to this project
Virtue Ethics and Organizations
Virtue ethics commonly focuses on human behavior. However, in this project it is assumed that organizations and governments can as well behave in a virtue-like, or for that matter a vice-like, manner. This is for example in line with the way Acemoglu & Davidson (2010) talk about ‘extractive’ vs. ‘inclusive’ government institutions, in fact implying a ‘virtue-discourse’ on a macro-level.
So we we look at the role of virtues at different levels:
- the personal level;
- the intermediate level of business-organization;
- the macro-level of governments.
On the personal level we look into the virtuous behavior, or lack thereof, of managers and other persons acting in the market. We also investigate on a more aggregate level what virtue / value patterns and what virtue-inspired institutional arrangements are needed to make markets contribute to well-being or human flourishing.
The leading questions of this project are as follows:
C2. What can we learn from social psychology and management studies about the impact of virtues and vices, as they become manifest in various styles of leadership, on human flourishing in and through companies?
Methodologies used in this project are:
- Game theory (C1)
- Behavioral economics (C1)
- Critical assessment of state of the art insights in various fields of economics (C1)
- Factor analysis/ Principal Component Analysis (C2)
- Regression analysis (C2)
- Binary logit/probit model (C2)