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Back to Buchanan? Explorations of welfare and subjectivism in behavioral economics

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  • Malte F. Dold

Abstract

In light of behavioral findings regarding inconsistent individual decision-making, economists have begun to re-conceptualize the notion of welfare. One prominent account is the preference purification approach (PP), which attempts to reconstruct preferences from choice data based on a normative understanding of neoclassical rationality. Using Buchanan’s notion of creative choice, this paper criticizes PP’s epistemic, ontological, and psychological assumptions. It identifies PP as a static position that assumes the satisfaction of given ‘true preferences’ as the normative standard for welfare. However, following Buchanan, choice should be understood dynamically as a process whereby preferences constantly regenerate. Accordingly, the meaning of welfare emerges from an ongoing quest for individual self-constitution. If this holds true, then rationality axioms cannot serve as a priori normative standards. Instead, creative imagination and learning processes must remain central to any understanding of welfare in economics.

Suggested Citation

  • Malte F. Dold, 2018. "Back to Buchanan? Explorations of welfare and subjectivism in behavioral economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 25(2), pages 160-178, April.
    • Handle: RePEc:taf:jecmet:v:25:y:2018:i:2:p:160-178
    DOI: 10.1080/1350178X.2017.1421770
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    Cited by:

    1. Guilhem Lecouteux & Ivan Mitrouchev, 2021. "The "View from Manywhere": Normative Economics with Context-Dependent Preferences," GREDEG Working Papers 2021-19, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Oliver Braganza & Jakob Kapeller, 2025. "Reappraising consumption nudging—on liberty in the age of climate catastrophe," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-13, December.
    3. Mario J. Rizzo & Malte F. Dold, 2020. "Can a contractarian be a paternalist? The logic of James M. Buchanan’s system," Public Choice, Springer, vol. 183(3), pages 495-507, June.
    4. Guilhem Lecouteux & Ivan Mitrouchev, 2023. "The view from Manywhere : normative economics with context-dependent preferences," Post-Print hal-04551021, HAL.
    5. L. Lades & F. Nova, 2024. "Ethical Considerations When Using Nudges to Reduce Meat Consumption: an Analysis Through the FORGOOD Ethics Framework," Journal of Consumer Policy, Springer, vol. 47(1), pages 1-19, March.
    6. Erik W Matson, 2024. "The new paternalism does not replace older wisdom," Economic Affairs, Wiley Blackwell, vol. 44(2), pages 386-393, June.
    7. Dold, Malte & Lewis, Paul, 2022. "F.A. Hayek on the political economy of endogenous preferences: An historical overview and contemporary assessment," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 104-119.
    8. Alan Hamlin, 2023. "Subjectivism and Constitutionalism," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 40(1), pages 19-38, December.
    9. Guilhem Lecouteux, 2020. "Welfare Economics in Large Worlds: Welfare and Public Policies in an Uncertain Environment," GREDEG Working Papers 2020-08, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    10. Christian Schubert, 2021. "Opportunity meets self-constitution," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(1), pages 51-65, March.
    11. Charles Delmotte & Malte Dold, 2022. "Dynamic preferences and the behavioral case against sin taxes," Constitutional Political Economy, Springer, vol. 33(1), pages 80-99, March.
    12. Leonhard Lades & Federica Nova, 2022. "Ethical Considerations when using Behavioural Insights to Reduce Peoples Meat Consumption," Working Papers 202209, Geary Institute, University College Dublin.

    More about this item

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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