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Ethics and Incentives: A Political Approach

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  • GRANT, RUTH W.

Abstract

Understood within an economic framework as a form of trade, incentives appear inherently ethical; understood as a form of power, incentives seem ethically suspect. Incentives, along with coercion and persuasion, are among the ways in which some people get others to do what they want them to do. This paper analyzes incentives as a form of power in order to develop criteria for distinguishing legitimate from illegitimate uses of them. Whereas an economic approach focuses on voluntariness as the sole criterion in judging incentives, this political approach yields three standards: purpose, voluntariness, and effect on the character of the parties involved. The paper explores issues that arise in applying these standards. Framing the problem of incentives as a problem of power reveals the ethical issues with greater depth and complexity than placing incentives in an economic frame of reference.

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  • Grant, Ruth W., 2006. "Ethics and Incentives: A Political Approach," American Political Science Review, Cambridge University Press, vol. 100(1), pages 29-39, February.
    • Handle: RePEc:cup:apsrev:v:100:y:2006:i:01:p:29-39_06
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    Cited by:

    1. Sandro Ambuehl & Axel Ockenfels, 2017. "The Ethics of Incentivizing the Uninformed: A Vignette Study," American Economic Review, American Economic Association, vol. 107(5), pages 91-95, May.
    2. Pietro Maffettone, 2016. "Benevolent absolutisms, incentives and Rawls’ The Law of Peoples," Politics, Philosophy & Economics, , vol. 15(4), pages 379-404, November.
    3. Yuri Gorbaneff & Ariel Cortés & Sergio Torres & Francisco J. Yepes, 2013. "Teoría de costos de transacción, formas de gobernación y los incentivos en Colombia: un estudio de caso," Estudios Gerenciales, Universidad Icesi, September.
    4. Viola S. Ackfeld, 2020. "The Aversion to Monetary Incentives for Changing Behavior," Working Paper Series in Economics 100, University of Cologne, Department of Economics.
    5. Ackfeld, Viola & Ockenfels, Axel, 2021. "Do people intervene to make others behave prosocially?," Games and Economic Behavior, Elsevier, vol. 128(C), pages 58-72.
    6. Louis Larue & Camille Meyer & Marek Hudon & Joakim Sandberg, 2022. "The Ethics of Alternative Currencies," ULB Institutional Repository 2013/341622, ULB -- Universite Libre de Bruxelles.
    7. Kolb, Robert W., 2010. "Incentives in the Financial Crisis of Our Time," The Journal of Economic Asymmetries, Elsevier, vol. 7(2), pages 21-55.

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