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Adam Smith on reputation, commutative justice, and defamation laws

Author

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  • Bonica, Mark J.
  • Klein, Daniel B.

Abstract

We interpret Adam Smith on reputation, commutative justice, and defamation laws. We address two major questions. The first question concerns whether Smith thought that “one's own” as covered by commutative justice included one's reputation. Several passages point to the affirmative. But reputation is left out of Smith's “most sacred laws” description of commutative justice. Most importantly, so much of reputation—e.g., “Steve's work stinks”—does not fit Smith's description of commutative justice's rules (precise and accurate). Our reading makes use of older terminology from Pufendorf, Carmichael, and Hutcheson distinguishing “simple” and “intensive” reputation, and suggests that the “reputation” that sometimes appears in Smith's characterizations of “one's own” is of a simple variety (“Steve steals horses”) that potentially incites invasion of commutative justice's three staples—person, property, promises due. On that reading the “reputation” that comes under commutative justice, though not a staple, belongs to the penumbra around the three staples, just as incitement and endangerment belong to that penumbra. We also recruit Hume, who nowhere even hinted at reputation being a constituent of commutative justice.

Suggested Citation

  • Bonica, Mark J. & Klein, Daniel B., 2021. "Adam Smith on reputation, commutative justice, and defamation laws," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 788-803.
  • Handle: RePEc:eee:jeborg:v:184:y:2021:i:c:p:788-803
    DOI: 10.1016/j.jebo.2020.08.028
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    More about this item

    Keywords

    Adam Smith; Reputation; Commutative justice; Defamation; Libel; Slander; Perfect rights; Natural jurisprudence; Esotericism;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K15 - Law and Economics - - Basic Areas of Law - - - Civil Law; Common Law

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