Sunday, May 28, 2023

How do (should?) economists study repugnance?

 Here's a recent paper by Peter Cserne that looks at different ways that economists study repugnance:

Cserne, P. (2023). Economic analyses of repugnant market transactions: A modest typology. Journal of Institutional Economics, 1-14. doi:10.1017/S1744137423000139

"Abstract: Economic accounts of repugnance concern two broad questions: the rationalisation of sentiments of repugnance (do emotional and visceral reactions of repugnance track valid reasons for not engaging in or condemning certain (trans)actions?) and institutional design (how to institute, regulate, or restrict markets in response to reasonable objections). If repugnance expresses valid practical reasons for regulating or limiting markets, our institutions should acknowledge and express these. If attitudes of repugnance are not rationalisable in the sense of instrumental or moral values, we should disregard or eventually counteract or reduce them. Focusing on a special case of repugnance, when commodification, i.e., the sale of goods or services for money meets societal disapproval, this paper identifies three characteristic ways to combine conceptual, empirical, and normative arguments and map repugnance into a disciplinary ‘epistemic frame’ of economics: repugnance as taste; repugnance as proxy for market failures or moral reasons; repugnance as hypocrisy or contingent cultural fact. Correspondingly, economists advise to (1) work around; (2) make sense of; and (3) explain away people's sentiments of repugnance."

...

"In recent decades, the economic discourse on repugnance has become rich and dense. While the moral limits of markets have been discussed in philosophy and various social and policy sciences for centuries, in the last decades, repugnance as a possible limit to markets has been increasingly subject to technical economic analysis as well (Khalil and Marciano, Reference Khalil and Marciano2018; Roth, Reference Roth2007; Tirole, Reference Tirole2017: 33–50). To be sure, from a longer historical perspective, economists have always been concerned with moral sentiments, including repugnance.

...

"Regarding the moral limits of markets, there is a range of (a) substantive views. For the purposes of this paper, we roughly distinguish three stances: commodification, anti-commodification, and anti-anti-commodification. These are expressed in different (b) conceptual categories: as moral preferences; moral externalities or merit goods; and hypocrisy or cultural facts. Together, they allow to express the substantive concerns in (c) analytical frameworks, in other words, they provide the technical terms for economists to, respectively: work around; rationalise, i.e., make sense of; and explain away people's repugnance. Thus, I suggest distinguishing three substantive stances on repugnance in economics, combining conceptual choices and normative commitments into analytical frameworks.

"First, economists may conceptualise repugnance as a taste or (moral) preference. Following the dictum de gustibus non est disputandum (Stigler and Becker, Reference Stigler and Becker1977), they engage in technical normative analysis and institutional design in an engineering mode (Roth, Reference Roth2002). Normatively, they orient themselves in favour of commodification, i.e., extending the scope of markets. Correspondingly, their analytical strategy is to propose policies to ‘work around’ social sentiments of repugnance.

"Second, economists may conceptualise repugnance in terms of (moral) externality or merit goods, i.e., as versions of or proxies for market failures. In doing so, they make sense of sentiments of repugnance, in terms of ordinary economic analysis. Correspondingly, they propose policies to justify limiting or regulating markets. They engage in the rationalisation of anti-commodification sentiments in terms of public reasonableness.

"Third, economists may conceptualise repugnance as an expression of hypocrisy or as a cultural fact of no independent normative weight. Normatively, they engage in demystifying repugnance either by naturalising it or philosophically debunking sentiments of repugnance as unreasonable ‘romance’; their analytical strategy could be characterised as anti-anti-commodification insofar as they aim to explain away anti-commodification arguments as irrelevant for policy debates around institutional design."

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