Altruism, Morality, and Economic Theory

236 Pages·1975·5.57 MB·English

by  Edmund S. Phelps

Altruism, Atom/ity, {lid Economic Theory

Altruism,
Morality,
and Economic Theory
Edited by Edmund S. Phelps
Russell Sage Foundation New York
PUBLICATIONS OF RUSSELL SAGE FOUNDATION
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lishes books or pamphlets resulting from these activities. Publication
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agreement by the Foundation, its Trustees, or its staff with the
interpretations or conclusions of the authors.
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230 Park Avenue, New York, New York 10017
© 1975 Russell Sage Foundation. All Rights Reserved.
Library of Congress Catalog Card Number: 74-79448
Standard Book Number: 87154-659-0
Printed in the United States of America.
The Contributors
Kenneth J. Arrow Roland N. McKean
Professor of Economics Professor of Economics
Harvard University University of Virginia
William Baumol Thomas Nagel
Joseph Douglas Green '95 Professor Professor of Philosophy
of Economics Princeton University
Princeton University
Wilfried -Pauwels
Bruce R. Bolnick Lecturer in Economics
Assistant Professor of Economics University of Antwerp
Duke University
Edmund S. Phelps
Professor of Economics
James M. Buchanan
Columbia University
Professor of Economics
Virginia Polytechnic Institute &
Amartya K. Sen
State University
Professor of Economics
London School of Economics
Guido Calabresi
John Thomas Smith Professor Karl Shell
of Law Professor of Economics
Yale University University of Pennsylvania
William S. Vickrey
Peter Hammond
McVickar Professor of Political
Lecturer in Economics
University of Essex Economy
Columbia University
Edward F. McClennen Burton A. Weisbrod
Professor of Philosophy Professor of Economics
University of Western Ontario University of Wisconsin

Contents
Preface IX
Introduction Edmund S. Phelps 1
PART 1
Gifts and Exchanges Kenneth]. Arrow 13
Economics of Trust, Altruism, Roland N. McKean 29
and Corporate Responsibility
Business Responsibility and William j. Baumol 45
Economic Behavior
Comment Guido Calabresi 57
Comment Thomas Nagel 63
PART 2
The Samaritan's Dilemma james M. Buchanan 71
The Indeterminacy of Game-Equilibrium Edmund S. Phelps 87
Growth in the Absence of an Ethic
A Mathematical Note Wilfried M. A. Pauwels 107
Charity: Altruism or Cooperative Peter Hammond 115
Egoism?
viii • ALTRUISM, MORALITY, AND ECONOMIC THEORY
Comment Edward F. McClennen 133
Comment Karl Shell 141
PART 3
Private Philanthropy and William Vickrey 149
Public Finance
Toward a Theory of the Voluntary Burton A. Weisbrod 171
Non-Profit Sector
in a Three-Sector Economy
Toward a Behavioral Theory Bruce R. Bolnick 197
of Philanthropic Activity
Comment Amartya Sen 225
Index 229
Preface
The self-interest model has had sweeping success over recent decades in the
study of both economics and politics. Yet the inner ambiguities and limitations
of that model could not indefinitely escape notice and examination. Self interest
in some interpretation is some of the story some of the time, never the whole
story. On March 3 and 4, 1972, a number of social scientists met at Russell Sage
Foundation to speculate and theorize on the roles that altruism and morality in
a society may play in shaping human behavior and institutions within it.
The nine papers presented at the conference are by economists. The
commentaries on them were drawn from representatives of other disciplines,
primarily philosophy and law. This volume is a rough. approximation to the
proceedings of the conference. An introduction by the editor has been added to
announce some of the main themes and to bring out some of the interrelations
among the papers.
The contributors are grateful to Russell Sage Foundation for its sponsorship
of the conference and of this volume. Particular thanks go to Orville Brim, Jr.,
former president of the Foundation, to Eleanor Bernert Sheldon, now president
of the Social Science Research Council, and to Hugh F. Cline, now president of
Russell Sage Foundation. The editor is also grateful to William Baumol for
allowing the use of his paper in place of one of the original conference papers
subsequently withdrawn.
E.S.P.
New York
May 1974
ix