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Why my doctor is a Kantian and my car mechanic is an Aristotelian: bringing marketplace ethics into the classroom

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  • Jonathan B. Wight

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Abstract

This article makes the case for bringing ethics more explicitly into the economics classroom. It outlines a theory of pluralist ethical institutions, explains how these may solve certain problems in markets and relates them to a model of human behaviour proposed by Adam Smith. Markets operate not only on the foundation of outcome incentives tied to contracts and property rights, but also on the basis of Kantian duty and Aristotelian virtue. These latter concepts explain the development of deeper trust, which reduces transaction costs and risks. Trust can be achieved through reputational effects in repeat trade and from sharing sentiments and principles. Smith’s moral sentiments model describes how individuals come to develop the self-control needed to obey social norms and laws relating to honesty and treating others with respect. The article provides examples of markets that are enhanced by non-consequentialist ethical institutions, as well as some of the constraints imposed by them. It thus provides a strong case for dealing with ethics in standard economics courses and it makes some suggestions for how this can be done simply and effectively.

Suggested Citation

  • Jonathan B. Wight, 2024. "Why my doctor is a Kantian and my car mechanic is an Aristotelian: bringing marketplace ethics into the classroom," Advances in Economics Education, Edward Elgar Publishing, vol. 3(1), pages 24-42, July.
  • Handle: RePEc:elg:aeejrn:v:3:y:2024:i:1:p24-42
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    More about this item

    Keywords

    Ethics; Adam Smith; Social norms; Trust; Asymmetric information;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B55 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Social Economics
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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