SA#1: Law has been codified and is enforced by a legitimate authority, it is the part of law that is appropriate to collectively enforce per Weber. Morals represent the ideas that a collective body of people believe are right or wrong, but have not necessarily been enacted into law. Whether or not something is morally wrong and whether or not something should be subjected to legal sanction are related, but separate, questions.
SA#2: Kant says collective coercion is only appropriate in cases where restricting the freedom of action of people increases the autonomy of humans in general. Mill says the only justification for restricting freedom of action is the assurance that if the action wasn’t restricted, the person would harm someone else. According to Mill, it is improper to restrict the freedom of action to prevent people from harming themselves, Kant is not explicit about this.
Thursday, March 5, 2009
RP?
I have been looking at review sheet #1 short answers and was wondering if anyone knew which document "RP p. 6a" is? This is for question 7 and 9.
Study Guide 2 Q. 8 and 9
8.) The fact that healthcare is a far cry from a perfect market sets up a chain of perverse incentives. What are these incentives?
Their is no free entry one cannot simply open a hospital. This gives health providers a degree of market power that compromises the competitive market - raises prices. Health care also offers "substantive positive externalities" The value to society of mass vaccinations far exceeds the profits that can be captured by the doctor or drug company. If vaccinations and other public health measures were left to private supply and demand, society would seriously underinvest. Society invests in other public health measures that markets underprovide. The health care system also depends heavily on extra-market norms—the fact that physicians and nurses are guided by ethical constraints and professional values that limit the opportunism that their specialized knowledge and power might otherwise invite.
9.) Explain how asymmetric info interferes with a market.
Asymmetric - a situation in which one party in a transaction has more or superior information compared to another. A situation in which the seller knows more than the buyer.(or reversed) Bad because one party can take advantage of another hence immoral behavior. Also creates a moral hazard, ex. one can commit arson because he has fire insurance.
Their is no free entry one cannot simply open a hospital. This gives health providers a degree of market power that compromises the competitive market - raises prices. Health care also offers "substantive positive externalities" The value to society of mass vaccinations far exceeds the profits that can be captured by the doctor or drug company. If vaccinations and other public health measures were left to private supply and demand, society would seriously underinvest. Society invests in other public health measures that markets underprovide. The health care system also depends heavily on extra-market norms—the fact that physicians and nurses are guided by ethical constraints and professional values that limit the opportunism that their specialized knowledge and power might otherwise invite.
9.) Explain how asymmetric info interferes with a market.
Asymmetric - a situation in which one party in a transaction has more or superior information compared to another. A situation in which the seller knows more than the buyer.(or reversed) Bad because one party can take advantage of another hence immoral behavior. Also creates a moral hazard, ex. one can commit arson because he has fire insurance.
Wednesday, March 4, 2009
Review sheet #2, Short answer question #4
I know that Price Targeting has to do inflating price by convincing customers to pay what they can actually afford for something rather than what it actually costs to make. For example a starbucks cup of espresso. But what does he mean for the second part of the question when he asks, " To what 'LEAKS' is it prone?"
Review sheet #2 short answers
Here are some good quotes that may give some guidance on the short answers for review sheet #2 questions 1-3.
1. “To what level of performance are employers entitled? Optimal performance, or some lower level? But that does not necessarily mean that the employer has a right to a maximum or optimal level of performance, a level above and beyond a certain level of acceptability. If the person is producing what is expected, knowledge of drug use on the grounds of production is irrelevant since, by this hypothesis, the production is satisfactory.
2. “First it must be understood that one cannot justify the position that shareholder concerns take precedence over all other groups simply by appeal to the fact that shareholders are the legal owners of the corp. In that case, all one has done is provide a definition of the term shareholder; one has yet to provide a morally relevant reason for privileging the interests of that group. The natural tack at this point is to assert that a legal owner has property rights that allow her to dispose of her property in any manner she see fit. According to Maitland, shareholders have taken a risk in placing their money in the hands of the corporation, and are thereby due compensation in the form of having their interests given privilege over those of other parties. While the workers investment in a corp is not of the same sort as the shareholders, it constitutes a risk nevertheless, and so there workers position is not dissimilar to that of the shareholder. More importantly, shareholders tend to think of themselves not as owners of the corporation, but rather as investors in it. For the vast majority of shareholders, dabbling in the stock market is something chosen for its high rate of return, not in order to become a corporate owner. Thus, it is hard to understand how the investor himself, management, and the company’s employees.
3. “The conclusion is that congestion charging not only improves efficiency, it also redistributes money by raising more tax from the rich.”we pay for what we use, pricing should reflect damage
1. “To what level of performance are employers entitled? Optimal performance, or some lower level? But that does not necessarily mean that the employer has a right to a maximum or optimal level of performance, a level above and beyond a certain level of acceptability. If the person is producing what is expected, knowledge of drug use on the grounds of production is irrelevant since, by this hypothesis, the production is satisfactory.
2. “First it must be understood that one cannot justify the position that shareholder concerns take precedence over all other groups simply by appeal to the fact that shareholders are the legal owners of the corp. In that case, all one has done is provide a definition of the term shareholder; one has yet to provide a morally relevant reason for privileging the interests of that group. The natural tack at this point is to assert that a legal owner has property rights that allow her to dispose of her property in any manner she see fit. According to Maitland, shareholders have taken a risk in placing their money in the hands of the corporation, and are thereby due compensation in the form of having their interests given privilege over those of other parties. While the workers investment in a corp is not of the same sort as the shareholders, it constitutes a risk nevertheless, and so there workers position is not dissimilar to that of the shareholder. More importantly, shareholders tend to think of themselves not as owners of the corporation, but rather as investors in it. For the vast majority of shareholders, dabbling in the stock market is something chosen for its high rate of return, not in order to become a corporate owner. Thus, it is hard to understand how the investor himself, management, and the company’s employees.
3. “The conclusion is that congestion charging not only improves efficiency, it also redistributes money by raising more tax from the rich.”we pay for what we use, pricing should reflect damage
Review Sheet #1 Defintions
If anyone else has answers to any long answers or short answers, please post here (Joey is sending out the correct password to the class, the former one was incorrect) or email to the class. Thanks! We will continue to contribute to this blog throughout the night as long as others do.
oligopony: group of sellers that control market price
oligopsony: group of buyers that control market price
non sequitur: a statement that does not follow logically from what
preceeded it
caveat emptor/cavet venditor: let the buyer beware/let the seller beware
stockholders v. creditors: a stockholder invests in a share of a
company, whereas a bank loans money with the expectation of being paid
back and has no ownership in company
fiduciary responsibility: a good faith responsibility
problem of agency: problem that arises when an agent is supposed to act
on behalf of a principle in a fiduciary relationship as a result of
people inherently working in their own best interest
Mohist: Chinese school of philosophy based on the ideas of Mozi. Belief
in equal care for all individuals and that the motivation behind doing
good deeds is equally as important as doing good deeds.
Consequentialism: moral theory that believes you must judge the
morality of an action based on the consequences of it. If an action
produces a good outcome, it is a moral one.
Ethics: branch of philosophy that explores the nature of moral virtue
and evaluates human actions. Ethics seeks to study morality through a
rational, secular outlook that is grounded in notions of human
happiness or wellbeing.
Egoism: attitude that moral behavior should be directed towards one’s
own personal interests.
Deontology: moral theory that bases the rightness or wrongness of an
act from the character of the action itself, not on its outcome.
Virtue ethics: moral theory that judges “morality” in terms of
individual people, not on individual actions or the consequences of
those actions.
Utilitarianism: moral philosophy that what is “good” is determined by
its contribution to the overall good of all people.
Capitalism: An economic system that depends on the private ownership of
the means of production and on competitive forces to determine what is
produced. It is incompatible with regulated markets.
Biocentric v. homocentric: focus on the well being and rights of all
living things as opposed to a view that humans re the center of reality
and only considers the rights and well being of humans.
“Mock participation”: the appearance of being engaged in and believing
in an activity, when in actuality the “mock participator” does not. An
example is the “Give me a W!” cheer done by Wal Mart employees.
Privity of contract- doctrine that only the parties to a contract have
rights or obligations under that contract.
Ethically inauthentic: when a person divides their moral values into
that of the businessman and that of the citizen. An ethically
inauthentic person might justify doing something that they would
normally condemn as unethical by the fact that they are doing it for
“business”.
Power of eminent domain: state’s power to seize private property with
due monetary compensation.
Tragedy of the commons: dilemma in which multiple individuals can
destroy a shared limited resource by acting in their own self interest,
even when it is not in the best interest of anyone for the resource to
be destroyed.
Nemo dat principle: The principle that one cannot give (or sell) what
one does not actually possess.
Stakeholder analysis vs stakeholder synthesis: stakeholder analysis is
the process through which stakeholders are identified and the positive
and negative impacts of an action on each are identified, but not
actually integrated into the decision making process. Stakeholder
synthesis actually incorporates this analysis into decision making and
implementation.
Ethical relativism: philosophy that an ethical decision must be judged
by the morals of the culture the decision was made in.
Stakeholder (wide vs. narrow): the narrow definition of a stakeholder
includes groups who are vital to the survival and success of the
corporation. The wide definition of a stakeholder includes groups who
are in any way affected by the corporation.
oligopony: group of sellers that control market price
oligopsony: group of buyers that control market price
non sequitur: a statement that does not follow logically from what
preceeded it
caveat emptor/cavet venditor: let the buyer beware/let the seller beware
stockholders v. creditors: a stockholder invests in a share of a
company, whereas a bank loans money with the expectation of being paid
back and has no ownership in company
fiduciary responsibility: a good faith responsibility
problem of agency: problem that arises when an agent is supposed to act
on behalf of a principle in a fiduciary relationship as a result of
people inherently working in their own best interest
Mohist: Chinese school of philosophy based on the ideas of Mozi. Belief
in equal care for all individuals and that the motivation behind doing
good deeds is equally as important as doing good deeds.
Consequentialism: moral theory that believes you must judge the
morality of an action based on the consequences of it. If an action
produces a good outcome, it is a moral one.
Ethics: branch of philosophy that explores the nature of moral virtue
and evaluates human actions. Ethics seeks to study morality through a
rational, secular outlook that is grounded in notions of human
happiness or wellbeing.
Egoism: attitude that moral behavior should be directed towards one’s
own personal interests.
Deontology: moral theory that bases the rightness or wrongness of an
act from the character of the action itself, not on its outcome.
Virtue ethics: moral theory that judges “morality” in terms of
individual people, not on individual actions or the consequences of
those actions.
Utilitarianism: moral philosophy that what is “good” is determined by
its contribution to the overall good of all people.
Capitalism: An economic system that depends on the private ownership of
the means of production and on competitive forces to determine what is
produced. It is incompatible with regulated markets.
Biocentric v. homocentric: focus on the well being and rights of all
living things as opposed to a view that humans re the center of reality
and only considers the rights and well being of humans.
“Mock participation”: the appearance of being engaged in and believing
in an activity, when in actuality the “mock participator” does not. An
example is the “Give me a W!” cheer done by Wal Mart employees.
Privity of contract- doctrine that only the parties to a contract have
rights or obligations under that contract.
Ethically inauthentic: when a person divides their moral values into
that of the businessman and that of the citizen. An ethically
inauthentic person might justify doing something that they would
normally condemn as unethical by the fact that they are doing it for
“business”.
Power of eminent domain: state’s power to seize private property with
due monetary compensation.
Tragedy of the commons: dilemma in which multiple individuals can
destroy a shared limited resource by acting in their own self interest,
even when it is not in the best interest of anyone for the resource to
be destroyed.
Nemo dat principle: The principle that one cannot give (or sell) what
one does not actually possess.
Stakeholder analysis vs stakeholder synthesis: stakeholder analysis is
the process through which stakeholders are identified and the positive
and negative impacts of an action on each are identified, but not
actually integrated into the decision making process. Stakeholder
synthesis actually incorporates this analysis into decision making and
implementation.
Ethical relativism: philosophy that an ethical decision must be judged
by the morals of the culture the decision was made in.
Stakeholder (wide vs. narrow): the narrow definition of a stakeholder
includes groups who are vital to the survival and success of the
corporation. The wide definition of a stakeholder includes groups who
are in any way affected by the corporation.
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