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Satisfaction in action: Hume's endogenous theory of preferences and the virtues of commerce

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  • Matson, Erik W.

Abstract

Hume's theory of preferences would, from a contemporary point of view, be labelled an endogenous theory. He sees preferences largely as comparative desires that are formed and affected by the psychological process of sympathy. His view of preferences relates to his economic philosophy. Despite his understanding of preferences, Hume is, unlike some other thinkers with related perspectives like Thorstein Veblen, optimistic about the prospects of commercial society, claiming in one of his essays that the ages of commerce and refinement are both the happiest and the most virtuous. An important reason for his optimism lies in the fact that he understands happiness or well-being to largely consist in the process of actively pursuing one's preferences, not simply in the state of having one's preferences satisfied.

Suggested Citation

  • Matson, Erik W., 2021. "Satisfaction in action: Hume's endogenous theory of preferences and the virtues of commerce," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 849-860.
    • Handle: RePEc:eee:jeborg:v:183:y:2021:i:c:p:849-860
    DOI: 10.1016/j.jebo.2020.11.018
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    References listed on IDEAS

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    Cited by:

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    2. Erik W. Matson & Daniel B. Klein, 2022. "Convention without convening," Constitutional Political Economy, Springer, vol. 33(1), pages 1-24, March.

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    More about this item

    Keywords

    David Hume; Endogenous preferences; Sympathy; Economic philosophy; Commercial society;
    All these keywords.

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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