Points covered Pareto principle Are limits to the market always ethical Reasons for blocked exchanges Ethical theories and blocked exchanges Market exchange Voluntary market exchange conforms to ID: 425068
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Slide1
Limits to the Market
Points covered:
Pareto principle
Are limits to the market always ethical?
Reasons for “blocked exchanges”
Ethical theories and
blocked exchangesSlide2
Market exchange
Voluntary market exchange conforms to
the principle of
Pareto improvement
.
A transaction effects a Pareto improvement
if the welfare of at least one of the
transactors
increases whilst the welfare of
other
transactor
(s) does not decrease.Slide3
What is a ‘limit’ to the market?
If an item, X, cannot or should not
be bought and sold for money,
then we may speak of a
limit to
the market
.Slide4
Ethical and non-ethical
limits to the market
Some limits to the market are not
(obviously) ethical.
Example: one’s place in a queueSlide5
‘Blocked exchanges’
People (slavery)
(Democratic) electoral votes
(Democratic) political office
Freedom of speech, religion, pressSlide6
‘Blocked exchanges’ (cont.)
5) Waiver of health/safety laws (‘desperate exchanges’)
6) Prizes and
honours
7) Love and friendship
8) Narcotics, guns.Slide7
Reasons for blocking exchange
An exchange can transgress our
rights
.
Some exchanges are
impossible
because they pervert the nature of the thing being exchanged.Slide8
Reasons for blocking exchange (cont.)
Some exchanges are blocked because they would allow access to harmful goods.
Some goods should be allocated according to non-monetary means.
Some exchanges are blocked because they would lead to coercion.Slide9
Utilitarianism and blocked exchanges
Would a utilitarian advocate
blocking exchanges if rights are at
stake?Slide10
Word list
p. 97: simony ; p. 98: clandestine
p. 99: subterfuge; p. 102: indulgences
p. 103: commodious; polymorphous
p. 110: to pander
p. 112
: ostentation