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Rationality, constitutions, and the ethics of rules

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  • Edward McClennen

Abstract

It seems clear that individuals stand to mutually benefit, in a wide variety of situations, from structuring their interactions in terms of constitutional practices. But a commitment to treat the rules defining such practices as setting real constraints on choice—a commitment to what could be characterized as an “ethics of rules”—is hard to reconcile with the standard, consequentialist theory of rational choice, which requires, in effect, that individuals regard any rule as providing no more than a “maxim” for choice. Such a theory of rational choice, then, constrains individuals to settle for a second best outcome in which choice is aligned with practice rules by means of strategies of precommitment and threats. The outcome is second best because such methods yield only partial alignment, and involve the expenditure of scarce resources, as well as a sacrifice of flexibility and freedom. To say this, however, is to identify the corresponding theory of rational choice as havingconsequentially unacceptable implications. A modified theory of choice is presented, which is still consequentially oriented, but which assesses consequences in a more holistic manner. It is then argued that this modified theory can provide a rational choice grounding for the needed “ethics of rules.” Copyright George Mason University 1993

Suggested Citation

  • Edward McClennen, 1993. "Rationality, constitutions, and the ethics of rules," Constitutional Political Economy, Springer, vol. 4(2), pages 173-210, March.
  • Handle: RePEc:kap:copoec:v:4:y:1993:i:2:p:173-210
    DOI: 10.1007/BF02393079
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    References listed on IDEAS

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    1. Johnsen, Thore H & Donaldson, John B, 1985. "The Structure of Intertemporal Preferences under Uncertainty and Time Consistent Plans," Econometrica, Econometric Society, vol. 53(6), pages 1451-1458, November.
    2. Bezalel Peleg & Menahem E. Yaari, 1973. "On the Existence of a Consistent Course of Action when Tastes are Changing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(3), pages 391-401.
    3. Edward McClennen, 1990. "Foundational explorations for a normative theory of political economy," Constitutional Political Economy, Springer, vol. 1(1), pages 67-99, December.
    4. Peter J. Hammond, 1976. "Changing Tastes and Coherent Dynamic Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(1), pages 159-173.
    5. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
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    Cited by:

    1. Beckmann, Klaus, 2007. "Jon Elster und das Zeitinkonsistenz-Problem," Discussion Papers 2007-21, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    2. Lorenzo Sacconi, 2004. "A Social Contract Account for CSR as Extended Model of Corporate Governance (Part I): Rational Bargaining and Justification," Department of Economics Working Papers 0410, Department of Economics, University of Trento, Italia.
    3. Lorenzo Sacconi, 2007. "A Social Contract Account for CSR as an Extended Model of Corporate Governance (II): Compliance, Reputation and Reciprocity," Journal of Business Ethics, Springer, vol. 75(1), pages 77-96, September.

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