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The Moral Economy: Why Good Incentives Are No Substitute for Good Citizens (Castle Lecture Series), by Samuel Bowles
Ebook Download The Moral Economy: Why Good Incentives Are No Substitute for Good Citizens (Castle Lecture Series), by Samuel Bowles
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Review
"In his tightly argued and illuminating book, Bowles makes the case that appeals made to our self-interest can undercut instinctive moral impulses; and that when these impulses are weakened crucial institutions work sub-optimally, if not at all."—Robert Armstrong, Financial Times"Bowles has written a thought-provoking book, full of insights and evidence."—Choice"Fascinating and thought-provoking."—Democracy: A Journal of Ideas"The book does an excellent job of covering the existing research regarding incentives and human behavior and synthesizing it into an understandable format. This is an evolving area of scholarship so there are few, if any, similar books."—Charles D. Wilson, Law Library Journal“The Moral Economy is a wonderful read for all those unfamiliar with the experimental tradition in economics. . . . Through a detailed discussion of the experiments conducted by Bowles and his colleagues, one gets a real sense of this new breed of economists.”—Guus Dix, European Journal of SociologyWon an Honorable Mention for the 2017 Robert Lane Award given by the Organized Political Sections of the APSA"The Moral Economy plows new ground in exploring how the actions we take are motivated by their meaning. Samuel Bowles is proposing a paradigm shift in how we think about our lives and about economics."—George Akerlof, Nobel Laureate in Economics"The Moral Economy convincingly shows that economic incentives and legal constraints alone will not produce a flourishing society because good – morally motivated – people are indispensable. A thought-provoking work!"—Ernst Fehr, Professor of Economics at the University of Zurich"The Moral Economy is a brilliant book. Rarely have such big ideas been communicated in such a compact package. This book should change the way political leaders, policy makers, and social scientists of all stripes do their work and understand the work that they do."—Barry Schwartz, author of Practical Wisdom and Why We Work"In this wonderful book, Sam Bowles explores—with intellectual breadth and analytical acuity—the importance of altruism and a sense of fairness in creating and sustaining decent societies. His prose is lucid, arguments compelling, and conclusions important. This is social science at its very best."—Joshua Cohen, Apple University"Sam Bowles is a visionary thinker who has done more than anyone else I know to unite the social sciences. In this superb book his combination of wisdom and rigor shines through, offering important lessons for anyone who hopes to motivate, govern, or even inspire actual humans."—Joshua Greene, author of Moral Tribes and director of the Moral Cognition Lab, Harvard University
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About the Author
Samuel Bowles directs the Behavioral Sciences Program at the Santa Fe Institute and is the author of Microeconomics: Behavior, Institutions, and Evolution; A Cooperative Species: Human Reciprocity and Its Evolution (with Herbert Gintis);andThe New Economics of Inequality and Redistribution.
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Product details
Series: Castle Lecture Series
Paperback: 288 pages
Publisher: Yale University Press; Reprint edition (August 8, 2017)
Language: English
ISBN-10: 0300230516
ISBN-13: 978-0300230512
Product Dimensions:
5.2 x 0.8 x 8 inches
Shipping Weight: 11.2 ounces (View shipping rates and policies)
Average Customer Review:
3.8 out of 5 stars
19 customer reviews
Amazon Best Sellers Rank:
#45,277 in Books (See Top 100 in Books)
Used to work at Nokia in 90ies when when incentives were introduced. The size of incentives were dependent on the increase of the value in the company during the incentive period and the incentives became huge. I got the impression people who got those huge incentives maybe did not work as enthusiastically any more after they got the money. First I thought it was because they got so much money they did not have any reason to work anymore.But it was much more complicated than that. The incentives did not only erode people's effort level but also their morals: SOME people stopped working out of the only right motives of the engineer ("willing to achieve something cool and useful and something of high quality"). Somehow incentives eroded the "right" motives even in cases when the sums achieved were not huge at all.Samuel Bowles' book discusses the problem why sometimes incentives crowd-out (erode) the social (altruistic, reciprocal etc.) preferences of people when they are acting in the society and the companies. But he also discusses how social and economic incentives in some cases can work in synergy. When economic incentives do not act alone but are combind with a message (e.g. "it is wrong to do A and that's why we will put a monetary penalty for breaking the rule"), the incentives sometimes work together fine. So in the end this an optimistic book.The book is kind of conclusion of Bowles' studies during his whole life. (Bowles is a left-wing economist - I am right-wing but I trust on him for reasons which kind of become evident reading his not so politically correct writings.)This is not only a book describing the reality as it is but a book which wants to give advice to the Legislator. Bowles sees the task of the Legistlator much in an Aristotelian sense. It is not about creating a society where knaves are through incentives put to work in a manner that contributes to common good. It is also about developing incentives and institutions in a way which creates moral citizens with social preferences - or at least make the rules so, that existing social preferences do not crowd out and that people with social preferences are able to have a positive impact on the society and e.g. through peer punishment affect even how the other people without social preferences act.
The Moral Economy is a good, but ultimately impractical, book. It's great in questioning the mechanistic view of incentives that most economists bring to policy-making. It provides a sound mix of theory, evidence, anecdote and philosophy to make its case. Albeit its shortcomings it's well worth the read.Bowles introduces an important perspective into policy-making, with a message targeted at economists: social norms can amplify, cancel or overturn economic incentives designed with an specific outcome in mind. Norms work more or less like a megaphone: they can increase the reach of individual incentives, carrying them louder and farther, or they can screech them into dissonance, distorting or even cancelling-out the intended message.Blending political philosophy with recent findings from experimental economics, Bowles shows how other-regarding preferences, that is, networked utility functions that deliberately account for "the effects of one’s actions on others" (p. 26), introduce a challenge to those Pavlovian economists who believe social problems require little else than a smart mix of carrots and sticks. As Bowles puts it: "The challenge facing the Legislator is that the framing provided by the incentive may affect the salience of the individual’s social preferences, resulting in a level of experienced values different from would have been the case in the absence of the incentive. When this occurs, social preferences and incentives are not separable, and experienced values may be influenced (positively or negatively) by the use of incentives" (pp. 47-48). In short, there is feedback between individual incentives and social norms, and economists have made a mistake assuming this relationship away.What follows is that incentives are, besides tools to motivate action (pardon the tautology), messages that can further - or hinder - the goal of policies. This communicative role reflects the relationship between policy-makers and their constituents. As Bowles summarizes, "The problem of crowding out may arise when the information that an incentive conveys is off-putting about the person imposing the incentive, or when it frames the problem as one in which self-interested motives are acceptable or even called for, or when the incentive compromises the autonomy of its target" (p. 191). For this reason, incentives such as taxes or fines can have negative unexpected consequences, like the now famous Haifa kindergarten experiment on late pick ups, or positively magnifying effects, like the small tax on plastic bags introduced in Ireland in 2002. Incentives, therefore, can work most of the time if they're accompanied by an adequate appeal to related social norms.The book falls short on explaining what social norms are, how to identify them, and how they should be introduced into policy. The Aristotelian Legislator that Bowles advocates seems too preoccupied with philosophical musings to put together applicable, practical, ways of bringing them into the sphere of policy - a gap that the author might want to help close in the future, as the book offers vague, platitudinous advice to policy makers. Take this "advice" from page 207: "Avoid "bad news". Incentives designed to control or take unfair advantage of the target may not work; ensure fairness in implementation of incentives". This ivory tower style recommendation, and others like it, will never ring in the ears of the policy-makers who actually have to get things done.It seems to me that Bowles' Aristotelian Legislator would be adrift without a close, pragmatic, Aristotelian Engineer.In sum: Good on political philosophy, economic theory and experimental evidence. Lacking in concreteness to be useful in actual policy.
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