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In search of a market morality for making real the “Community of Advantage”: a note on Sugden’s “Principle of Mutual Benefit”

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  • Benedetto Gui

    (Sophia University Institute, Loppiano)

Abstract

In this note I discuss Robert Sugden’s original proposal of a market morality of mutual benefit, thoroughly expounded in his recent Community of Advantage. He envisions that jointly aiming at the benefit of all the parties in a transaction—a motivation different from both self-interest and altruism—can really make the market beneficial for everyone. Yet, such intention may not suffice when the transaction entails considerable negative externalities and these are not remedied by government regulation or intervention, or else when markets are not atomistic and some participants are rationed. So I observe that a morality of mutual benefit among transactors should be complemented by another constraint: not to cause significant undue damages to third parties. While recognizing that general adoption of a morality of mutual benefit would be a momentous step forward, in the end I suggest that the gravity of global problems call for walking some steps even beyond mutual benefit.

Suggested Citation

  • Benedetto Gui, 2021. "In search of a market morality for making real the “Community of Advantage”: a note on Sugden’s “Principle of Mutual Benefit”," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(1), pages 131-140, March.
  • Handle: RePEc:spr:inrvec:v:68:y:2021:i:1:d:10.1007_s12232-021-00365-1
    DOI: 10.1007/s12232-021-00365-1
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    References listed on IDEAS

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    1. Isoni, Andrea & Brooks, Peter & Loomes, Graham & Sugden, Robert, 2016. "Do markets reveal preferences or shape them?," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 1-16.
    2. Dur, Robert & Glazer, Amihai, 2008. "The desire for impact," Journal of Economic Psychology, Elsevier, vol. 29(3), pages 285-300, June.
    3. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    4. Lea Cassar & Stephan Meier, 2018. "Nonmonetary Incentives and the Implications of Work as a Source of Meaning," Journal of Economic Perspectives, American Economic Association, vol. 32(3), pages 215-238, Summer.
    5. Tonin, Mirco & Vlassopoulos, Michael, 2010. "Disentangling the sources of pro-socially motivated effort: A field experiment," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1086-1092, December.
    6. Luigino Bruni & Robert Sugden, 2013. "Reclaiming Virtue Ethics for Economics," Journal of Economic Perspectives, American Economic Association, vol. 27(4), pages 141-164, Fall.
    7. Gui,Benedetto & Sugden,Robert (ed.), 2005. "Economics and Social Interaction," Cambridge Books, Cambridge University Press, number 9780521848848, September.
    8. Patrick Francois & Michael Vlassopoulos, 2008. "Pro-social Motivation and the Delivery of Social Services," CESifo Economic Studies, CESifo Group, vol. 54(1), pages 22-54, March.
    9. Sugden, Robert, 2002. "Beyond sympathy and empathy: Adam Smith's concept of fellow-feeling," Economics and Philosophy, Cambridge University Press, vol. 18(1), pages 63-87, April.
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    Cited by:

    1. Dalila Rosa & Tommaso Reggiani & Paolo Santori, 2021. "Special Issue: “The Community of Advantage”," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(1), pages 1-4, March.

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    More about this item

    Keywords

    Market morality; Mutual benefit; Market imperfections; Externalities;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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