Business Ethics Final Exam Study Guide

How entrepreneurs are working to solve ethical problems in the supply chain

a) Promoting fair trade: Fair trade initiatives aim to ensure that cocoa farmers receive a fair price for their products, enabling them to earn a decent living and invest in more sustainable and ethical farming practices. b) Supporting direct trade and transparent supply chains: Some entrepreneurs are establishing direct relationships with cocoa farmers, bypassing middlemen and allowing for greater transparency and accountability in the supply chain. c) Encouraging sustainable and ethical farming practices: Initiatives that promote environmentally friendly and socially responsible cocoa farming practices, such as agroforestry and the elimination of child labor, can help improve the sustainability and ethics of the cocoa supply chain. d) Raising consumer awareness: By educating consumers about the ethical issues in the cocoa industry, entrepreneurs can drive demand for ethically and sustainably produced chocolate, incentivizing businesses to adopt better practices.

Three tests for coercion: reasonable alternatives, bargaining power, and market efficiency:

a) Reasonable alternatives: The availability of reasonable alternatives is a key test for determining if a market is coercive. If suppliers or consumers have limited options, they may be forced to accept unfavorable terms or prices. In the case of Amazon, the company's dominance in the market for digital goods may limit the alternatives available to suppliers and consumers. b) Bargaining power: Another test for coercion is the balance of bargaining power between buyers and sellers. If one party has significantly more power, it can dictate terms and conditions, potentially resulting in exploitation or coercion. Amazon's monopsony power gives it significant leverage over suppliers, enabling the company to demand lower prices and better terms. c) Market efficiency: A coercive market may be characterized by inefficiencies, such as artificially low prices or restricted competition. In a monopsony, the dominant buyer can depress prices below competitive levels, which can lead to reduced investment, innovation, and quality in the market. In the case of Amazon, the company's monopsony power may contribute to market inefficiencies and stifle competition in the digital goods market.

Examples of "gatekeeping" (barriers to entry):

a) Technology: A dominant tech company may create a gatekeeping role by controlling access to essential software, platforms, or services. For example, Apple's control over the iOS App Store can act as a gatekeeper for mobile app developers. b) Media: Large media companies may act as gatekeepers by controlling access to advertising, content distribution, or audience reach, making it difficult for smaller players to gain visibility and market share. c) Infrastructure: Companies that own or control critical infrastructure, such as transportation hubs, energy distribution networks, or internet backbone providers, can create barriers to entry for competitors that rely on these resources to operate.

Examples of market concentration in major industries:

a) Technology: The technology industry has seen significant market concentration with a few major players like Google, Facebook (Meta), Amazon, and Apple dominating various sectors such as search engines, social media, e-commerce, and digital devices. b) Pharmaceuticals: The pharmaceutical industry has experienced a high level of market concentration, with large companies like Pfizer, Johnson & Johnson, and Merck controlling significant shares of the market, often through mergers and acquisitions. c) Telecommunications: Telecommunications markets have also become concentrated, with major players like AT&T, Verizon, and Comcast dominating the industry and controlling access to critical infrastructure and services. d) Agriculture: The agriculture industry has seen increased concentration, particularly in seed production and agrochemicals, with companies like Bayer-Monsanto, Corteva, and Syngenta controlling large portions of the market.

Utilitarian, Kantian, and Rawlsian evaluations of drug pricing in the US:

a) Utilitarian: High drug prices in the US may be seen as unjust from a utilitarian perspective, as they limit access to essential medicines and disproportionately harm vulnerable populations, leading to an overall decrease in social welfare. b) Kantian: From a Kantian perspective, high drug prices may be viewed as treating patients as mere means to an end (profit) rather than as ends in themselves, violating the categorical imperative. c) Rawlsian: High drug prices may be inconsistent with Rawls's principles of justice, particularly the Difference Principle, which requires that any inequality should benefit the least advantaged members of society. High drug prices often disproportionately burden lower-income individuals.

How the ethical theories we've studied apply to the cocoa supply chain

a) Utilitarianism: From a utilitarian perspective, the focus should be on maximizing overall happiness and well-being in the cocoa supply chain. This could involve ensuring fair wages for farmers, eliminating child labor, and promoting sustainable farming practices that minimize environmental damage. b) Deontology: A deontological approach would emphasize the moral duty of all actors in the cocoa supply chain to act ethically and responsibly. For example, chocolate manufacturers have a duty to ensure that their supply chains are free from exploitation and environmental harm, while consumers have a duty to support ethical and sustainable products. c) Virtue Ethics: From a virtue ethics standpoint, individuals and organizations involved in the cocoa supply chain should cultivate virtues such as fairness, compassion, and responsibility. These virtues can guide decision-making and help create a more ethical and sustainable cocoa industry. d) Social Contract Theory: According to social contract theory, all actors in the cocoa supply chain, including farmers, traders, manufacturers, and consumers, should work together to establish a social contract that promotes fairness, sustainability, and ethical practices. By fulfilling their obligations under this contract, all parties can contribute to a more equitable and responsible cocoa industry.

How the ethical theories we've studied apply to the plastics/recycling industries:

a) Utilitarianism: From a utilitarian perspective, the focus should be on minimizing the negative consequences of plastic pollution and maximizing overall well-being through sustainable practices, recycling, and eco-friendly alternatives. b) Deontology: A deontological approach would emphasize the moral duty of individuals, governments, and corporations to act responsibly, reduce plastic pollution, and preserve the environment for future generations. c) Virtue Ethics: From a virtue ethics standpoint, individuals and organizations should cultivate virtues such as sustainability, responsibility, and environmental stewardship, to guide their decision-making in the context of plastic use and recycling. d) Social Contract Theory: According to this theory, individuals, governments, and corporations should work together to establish a social contract that balances the needs of society with environmental protection, promoting recycling and sustainable practices as part of their mutual obligations.

Graeber's taxonomy of the 5 types of bullshit jobs (and why they exist)

a. Flunkies: Jobs that exist primarily to make others feel important, such as personal assistants or door attendants. b. Goons: Positions that involve aggressive or adversarial behaviors, like lobbyists, corporate lawyers, or telemarketers. c. Duct tapers: Jobs that fix problems that shouldn't exist or are created within the organization, often due to inefficiencies or poor management. d. Box tickers: Employees who perform tasks to give the appearance of progress or compliance without actually contributing to the organization's goals. e. Taskmasters: Jobs that involve supervising or creating work for others, even if that work is not necessary or valuable.

Giblin and Doctorow / Amazon Monopsony (Chokepoint Capitalism)

"Chokepoint capitalism" is a term used to describe a situation in which a small number of key players, often large corporations or conglomerates, control critical points within an industry's supply chain or infrastructure, granting them significant market power and the ability to manipulate prices, dictate terms, and potentially exploit suppliers and consumers. These chokepoints can lead to significant power imbalances, reduced competition, and increased barriers to entry for smaller players or new entrants. In the context of digital markets, chokepoint capitalism can manifest itself when a dominant company, like Amazon or Google, exerts control over essential digital platforms, services, or technologies that other businesses rely on. This control can enable these large corporations to exploit their market power, shape the competitive landscape, and stifle innovation, ultimately limiting consumer choice and potentially leading to anticompetitive practices.

"Recycling Sham"

"Recycling Sham" exposes corporations that are responsible for "trashing the planet" and how plastics can affect our health.

Distributive Justice: Rawlsian Theory

: As mentioned earlier, John Rawls' theory of justice proposes principles based on the original position and the veil of ignorance. It emphasizes fair equality of opportunity and the difference principle, which allows inequalities only if they benefit the least advantaged members of society.

What a competitive drug market should look like vs. what the US market looks like:

A competitive drug market should feature multiple companies competing on price and innovation, leading to affordable, high-quality medicines for consumers. In contrast, the US market often exhibits high levels of market concentration, limited competition, and high drug prices.

Monopoly (and oligopoly) vs. monopsony (and oligopsony):

A monopoly occurs when a single company dominates the supply of a particular product or service, giving it significant control over pricing and market conditions. An oligopoly occurs when a small number of companies dominate a market, resulting in limited competition and similar control over pricing and market conditions. A monopsony, on the other hand, occurs when a single buyer dominates the demand for a particular product or service, giving it significant power to dictate the terms and prices at which it purchases goods or services from suppliers. An oligopsony occurs when a small number of buyers dominate a market, collectively exerting similar control over suppliers.

The knowledge gap vs the desirability gap vs the action gap (re: inequality)

A) Knowledge Gap: This refers to the difference in understanding about the extent, causes, and consequences of inequality between different groups or individuals. B) Desirability Gap: This refers to the difference between people's beliefs about what the ideal level of inequality should be and the actual level of inequality in society. This gap highlights the need to align societal values and preferences with policy interventions that reduce inequality. C) Action Gap: This refers to the difference between recognizing the need to address inequality and taking concrete steps to address it. Overcoming this gap requires translating awareness and consensus into policy changes and practical interventions that can effectively reduce inequality.

Rough equality of power as a precondition for freedom from domination

According to Hearn et al., a rough equality of power among market participants is necessary to prevent any single player from dominating others. This balance of power helps to maintain a competitive market landscape, where companies cannot exploit their position to coerce or manipulate suppliers, customers, or competitors, thereby ensuring freedom from domination for all market participants.

Alyson Paty / Recycling and the Plastics Industry

Alyson Paty is an American environmental advocate who has raised concerns about the "Recycling Sham" and the role of the plastics industry in promoting recycling as a solution to plastic pollution.

Andrew Carnegie's "Gospel of Wealth" and technocracy:

Andrew Carnegie, a wealthy industrialist and philanthropist, outlined his ideas on wealth and social responsibility in his essay "The Gospel of Wealth." Carnegie believed that the wealthy had a moral obligation to use their riches to promote the welfare of society. He argued that successful businessmen were best suited to determine how their wealth should be used for the public good, as they possessed the skills and knowledge necessary to make wise investments in social projects.

Pemberton's key factors contributing to inequality

Capital Returns, Concentration of Wealth, Wage Inequality, Education and Skills, Taxation and Policy (he influence of lobbying and political power by the wealthy is highlighted as a factor that can shape policies in favor of the rich).

The 3 tests for coercion as applied to agricultural workers (esp. during the pandemic)

Coercion can be identified by examining three factors: (a) the presence of threats, (b) the use of force, and (c) the exploitation of vulnerability.

Internal vs. external evidence of coercion (and examples):

Coercion is the act of forcing or manipulating someone to make a particular choice or engage in specific behavior. a) Internal evidence of coercion: This type of coercion arises from factors within the individual, such as personal needs, desires, or fears, which compel them to make certain choices or engage in specific behaviors. For example, a person may feel pressured to accept a low-paying job to avoid the shame of being unemployed or the fear of losing their home. b) External evidence of coercion: This type of coercion originates from factors outside the individual, such as social, economic, or political forces, which constrain their choices and actions. For example, a person may be coerced into accepting a low-paying job because the local economy does not offer other employment opportunities, or because their immigration status limits their options.

What the consumer welfare standard leaves out:

Critics argue that the consumer welfare standard overlooks several key aspects of market competition and economic power, including: a) Market power and supplier exploitation: By focusing solely on consumer welfare, the standard may ignore the potential for dominant firms to exploit suppliers through unfair contract terms, reduced prices, or predatory practices. b) Innovation and market entry: The standard may fail to recognize how market concentration can stifle innovation and create barriers to entry for new competitors, reducing long-term consumer choice and dynamism. c) Labor market effects: The consumer welfare standard often does not consider the impact of market concentration on workers, who may face reduced bargaining power, lower wages, and diminished job security.

Dan Ariely's "blind taste testing" expirements and the veil of ignorance

Dan Ariely, a behavioral economist, conducted "blind taste testing" experiments that can be compared to Rawls's "Veil of Ignorance." In these experiments, participants were asked to choose their preferences without knowing the brands or other identifying features of the products being tested. This lack of information ensured unbiased decision-making, similar to how the "Veil of Ignorance" ensures impartiality in choosing the principles of justice by removing knowledge of one's personal characteristics and social position.

How DRM enables monopsony in markets for digital goods (and examples):

Digital Rights Management (DRM) refers to the technologies and techniques used to restrict the use, modification, and distribution of copyrighted digital materials. a) Vendor lock-in: DRM can restrict consumers' ability to switch between platforms or service providers, as digital content purchased from one vendor may not be compatible with devices or platforms offered by other vendors. For example, eBooks purchased from Amazon's Kindle Store are not directly compatible with other e-readers, like Barnes & Noble's Nook. b) Restricted competition: By limiting the interoperability of digital goods, DRM can hinder competition between suppliers and reduce the availability of alternative products or services. This can give dominant players like Amazon even greater power in the market.

Ecological economics

Ecological economics is an interdisciplinary field that combines insights from ecology, economics, and other disciplines to develop a more sustainable and equitable economic system. It recognizes the interconnectedness of ecological and economic systems, emphasizing the importance of conserving natural capital and maintaining the health of ecosystems. By incorporating ecological principles into economic systems, ecological economics seeks to create a more sustainable and equitable economic system that conserves natural capital, maintains ecosystem health, and ensures long-term well-being for all.

ecological systems as a model for economic systems

Ecological economics proposes that economic systems should be modeled after ecological systems, which are characterized by: a) Interdependence: Just as species within an ecosystem depend on each other for survival, economic systems should recognize the interdependence of economic actors, natural resources, and ecosystems. b) Adaptability: Ecological systems are adaptable and resilient, responding to changes and disturbances in the environment. Similarly, economic systems should be flexible and adaptable, able to respond to changing conditions and resource availability. c) Regeneration: Ecosystems are characterized by regenerative processes, such as nutrient cycling and natural succession. Economic systems should adopt circular models that prioritize regeneration, recycling, and the sustainable use of resources.

Ecosystem services

Ecosystem services are the benefits that humans derive from ecosystems, which can be categorized into four types: a) Provisioning services: These include the production of food, water, timber, and other resources. b) Regulating services: These involve the regulation of essential ecological processes, such as climate regulation, flood control, and water purification. c) Supporting services: These are the services necessary for the production of other ecosystem services, such as nutrient cycling, soil formation, and pollination. d) Cultural services: These are non-material benefits that people obtain from ecosystems, such as recreational opportunities, aesthetic experiences, and spiritual enrichment.

Elizabeth Wallace and David Graeber

Elizabeth Wallace and David Graeber's works explore the concept of essential workers, bullshit jobs, and the moralization of work. Here, we examine the distinctions between essential and non-essential employees, bullshit jobs and shit jobs, Graeber's taxonomy of five types of bullshit jobs, and the moralization of work even when it's unproductive.

Posner and Weyl's proposal for dealing with institutional ownership:

Eric Posner and Glen Weyl, in their work on institutional ownership, propose a policy solution to address the potential anticompetitive effects of common ownership. Their proposal involves placing limits on the extent to which institutional investors can own shares in competing firms within the same industry. This would encourage more diverse ownership structures, promoting competition and reducing the potential for anticompetitive behavior resulting from common ownership. By implementing such restrictions, Posner and Weyl aim to create a more competitive market environment that encourages innovation and prevents the potential negative effects of institutional ownership on competition and consumer welfare.

"Essential" vs. non-essential employees

Essential employees are workers whose jobs are critical to the functioning of society and cannot be suspended, even during emergencies or crises like the COVID-19 pandemic. These include healthcare workers, grocery store employees, and agricultural workers, among others. Non-essential employees, on the other hand, perform jobs that can be temporarily suspended without causing significant disruption to society's functioning. Examples include jobs in the entertainment industry or non-urgent office work.

"Essential" vs. "non-essential" medicines:

Essential medicines are drugs that address the most important public health needs and should be available at affordable prices. Non-essential medicines may address less critical health issues or offer marginal improvements over existing treatments, and their pricing may be subject to greater market forces.

Positive vs. negative externalities (and examples):

Externalities are the side effects of an economic activity that impact third parties not directly involved in the transaction. A) Positive externalities: These are beneficial side effects. Examples include education (which benefits society through a more skilled workforce) and vaccination (which reduces the spread of disease). B) Negative externalities: These are harmful side effects. Examples include pollution (which harms the environment and public health) and noise pollution (which affects the well-being of nearby residents).

Foster's critique of Hawken's "natural capitalism"

Foster argues that the concept of natural capitalism, while acknowledging the importance of natural capital and the need for sustainable practices, remains fundamentally rooted in a capitalist framework that prioritizes profits and continuous growth. He contends that the ecological crisis cannot be adequately addressed within the confines of capitalism, as the system's inherent drive for expansion and accumulation leads to the continuous exploitation of natural resources and environmental degradation.

Frontline / "Covid's Hidden Troll"

Frontline's documentary "COVID's Hidden Toll" investigates the impact of the COVID-19 pandemic on vulnerable agricultural workers in the United States. The documentary explores issues related to coercion, infection rates, and how companies responded to infections among employees.

Full cost accounting (and how it addresses the problem of externalities):

Full cost accounting is an accounting method that takes into account the direct and indirect costs associated with a product or service, including environmental and social costs. This method addresses the problem of externalities by: a) Internalizing external costs: Full cost accounting aims to include the costs of negative externalities, such as pollution or resource depletion, in the price of goods and services. By doing so, it helps to ensure that companies and consumers bear the true cost of their actions, which can encourage more sustainable practices. b) Encouraging sustainable decision-making: By providing a more accurate representation of the costs associated with a product or service, full cost accounting allows businesses and consumers to make more informed decisions that take into account the environmental and social impacts of their choices. c) Guiding policy and regulation: Full cost accounting can help policymakers and regulators identify areas where intervention may be necessary to address market failures and protect the environment and society. This could involve implementing taxes, subsidies, or regulations that account for external costs and promote sustainable practices.

Genuine vs. apparent choices (and examples):

Genuine choices are the ones that allow individuals to freely select from a range of alternatives without facing undue pressure or coercion. Apparent choices, on the other hand, give the illusion of choice while, in reality, limiting the alternatives or creating a situation where individuals feel they have no real option but to choose a specific path. a) Genuine choice: A person deciding between several job offers based on personal preferences, such as location, job duties, and compensation. b) Apparent choice: A person living in a region with high unemployment who feels forced to accept a low-paying job with poor working conditions because no other viable employment options are available.

Examples of what GDP includes and what it leaves out:

Gross Domestic Product (GDP) is an economic measure that calculates the total value of goods and services produced within a country's borders over a specific time period. While GDP includes various economic activities, such as manufacturing, construction, and consumption, it leaves out some critical aspects: a) GDP does not account for the depletion of natural resources or the degradation of the environment resulting from economic activities. b) It does not measure unpaid work, such as household labor, caregiving, and volunteer work, which contribute to overall well-being. c) GDP does not reflect income inequality or distribution, as it calculates the total output without considering how the wealth is distributed among the population. d) Non-market activities that contribute to well-being, such as leisure time and community involvement, are not included in GDP calculations.

Hearn et al. / Market Concentration

Hearn et Al's work on market concentration explores the consequences of highly concentrated markets and the need for a balance of power to ensure freedom from domination

"Bullshit" Jobs vs Shit Jobs

In David Graeber's book "Bullshit Jobs: A Theory," he distinguishes between two types of undesirable jobs. Bullshit jobs are those that are perceived as pointless or even harmful to society by the people who perform them. These jobs are often well-paid, offer good working conditions, and hold a certain level of prestige. Shit jobs, in contrast, are characterized by poor pay, bad working conditions, and little social recognition. However, they often provide essential services to society, making them meaningful and necessary.

David Graeber's concept of "bullshit jobs"

In his book "Bullshit Jobs: A Theory," anthropologist David Graeber discusses the phenomenon of jobs that are perceived as meaningless and unproductive by the people doing them. These jobs often involve tasks that, if they were to disappear, would not significantly affect society or the organization. According to Graeber, bullshit jobs have proliferated in modern economies due to various factors, including the need for companies to maintain appearances and the societal expectation that people should work regardless of the value of their labor.

Robert Bork's "Antitrust Paradox" and the consumer welfare standard

In his book "The Antitrust Paradox," legal scholar Robert Bork argued that the primary goal of antitrust law should be to protect consumer welfare rather than simply preventing the concentration of economic power. Bork's consumer welfare standard contends that antitrust enforcement should focus on whether business practices result in lower prices, greater efficiency, and increased innovation for consumers, even if it leads to market concentration.

Freedom as the ability to decline

In the context of exploitation of need, freedom is often defined as the ability to decline an offer or opportunity without facing significant negative consequences. A person is considered to be truly free in their choices when they have the power to say no without facing undue hardship or pressure. This concept of freedom highlights the importance of providing individuals with genuine alternatives and the ability to exercise agency in their decision-making processes, which can help to reduce instances of exploitation and coercion.

Institutional Ownership (Posner and Weyl)

Institutional ownership refers to the ownership of a company's shares by institutional investors, such as mutual funds, pension funds, insurance companies, and other financial organizations. These institutions typically invest on behalf of large groups of individual investors or beneficiaries and can hold significant stakes in numerous companies across various industries.

Justin Pemberton / "Capital in Twenty First Century"

It explores the dynamics of wealth and income inequality across the globe over the past few centuries and examines how they have evolved. The documentary combines interviews with economists, historians, and experts with archival footage and data visualization to illustrate the patterns of wealth accumulation and distribution. It delves into the structural causes and consequences of economic inequality and raises questions about its impact on society.

Joanne B. Ciulla / Exploitation of Need

Joanne B. Ciulla is a professor of ethics and leadership who has written extensively on ethical issues in the workplace. In her work on the exploitation of need, she discusses the concepts of genuine vs. apparent choices, internal vs. external evidence of coercion, and freedom as the ability to decline. Exploitation of Need: To make a living, it may seems that most people have a variety of employment options. However, many needy peopletend to have less options to choose from. Even if they do, the options available are most likely degraded jobs that no oneis willing to take. However, in order to survive, needy people will work for those jobs

John Bellamy Foster / The Ecological Tyranny of the Bottom Line

John Bellamy Foster is an American sociologist, environmentalist, and political economist. He critiques Paul Hawken's "natural capitalism" concept, which he believes does not go far enough to address the fundamental problems of capitalism and its inherent drive for continuous growth and profit.

Joseph DesJardins / Sustainability

Joseph DesJardins is an American philosopher who has extensively written on business ethics, environmental ethics, and sustainability.

Justice as fairness vs. other conceptions of justice

Justice as Fairness, proposed by philosopher John Rawls, is one conception of justice that stands in contrast to other conceptions. Here are some key points of differentiation between Justice as Fairness and other conceptions of justice: 1)Focus on Fairness: Justice as Fairness places a strong emphasis on fairness as the central principle of justice. 2) Principles for Distribution: Justice as Fairness proposes the First Principle of Equal Basic Liberties and the Difference Principle, which prioritize equal rights and freedoms and allow inequalities only if they benefit the least advantaged. 3) Original Position and Veil of Ignorance: The original position and the veil of ignorance are central to Justice as Fairness, ensuring decision-making from an impartial standpoint. 4). Emphasis on the Least Advantaged: Justice as Fairness prioritizes the well-being of the least advantaged members of society and aims to minimize inequalities. 5). Contextual Considerations: Justice as Fairness acknowledges the need for context-specific applications and allows for a fair distribution of resources based on varying social and economic circumstances.

Linear vs. circular economic models

Linear and circular economic models represent two different approaches to resource consumption and waste generation: a) Linear economic model: The linear model follows a "take-make-dispose" pattern, where resources are extracted, used to produce goods, and ultimately discarded as waste. This model is inherently unsustainable, as it depletes finite resources and generates waste that contributes to pollution and environmental damage. b) Circular economic model: The circular model aims to minimize resource consumption and waste generation by designing products and systems that enable the reuse, recycling, and regeneration of materials. This approach promotes a more sustainable and regenerative use of resources, reducing the environmental impact of economic activities.

Market failure (and examples)

Market failure occurs when the free market does not efficiently allocate resources, resulting in a suboptimal outcome. Examples include externalities, public goods, asymmetric information, and market power (monopolies or oligopolies).

Conditions for legitimate regulation of markets

Market regulation is considered legitimate when it addresses market failures, protects public interests, ensures a level playing field, and maintains competition. It should also be transparent, proportionate, and nondiscriminatory.

Meagher's "excess power standard" of antitrust enforcement:

Michelle Meagher proposes the "excess power standard" as an alternative to the consumer welfare standard in antitrust enforcement. The excess power standard focuses on the broader implications of market concentration and dominance, rather than solely considering consumer prices and efficiency. Key aspects of the excess power standard include: a) Addressing power imbalances b) Promoting fairness and equity c) Encouraging innovation and competition By incorporating these broader considerations into antitrust enforcement, Meagher's excess power standard seeks to create a more balanced and equitable approach to competition policy that addresses the challenges posed by market concentration and dominance.

Michelle Meagher / Adaptive Antitrust

Michelle Meagher, a competition lawyer and author, has advocated for a broader approach to antitrust enforcement known as "adaptive antitrust." In her work, she highlights the issue of market concentration in major industries and proposes the "excess power standard" as a new way of addressing antitrust concerns.

The value of natural capital (esp. ecosystem services)

Natural capital refers to the world's stock of natural resources, such as air, water, soil, and biodiversity, as well as the ecosystem services they provide. Natural capitalism is a system of four interlinking principles, where business and environmental interests overlap, and in which businesses can better satisfy their customers' needs, increase profits and help solve environmental problems all at the same time.

Nicholas Shaxson / Patent Monopolies:

Nicholas Shaxson, in his work on patent monopolies, discusses how the intellectual property (IP) system can enable monopolies and the various issues associated with it.

Norman Bowie's argument for non-intervention in legislation by business

Norman Bowie argues that businesses should not interfere with the legislative process, as their primary responsibility is to maximize shareholder value within the legal and ethical boundaries set by society. In his view, businesses should focus on their core activities and not attempt to influence legislation, as it could lead to conflicts of interest and undermine democratic institutions.

Patents as a right vs. patents as a trade-off:

Patents can be seen as a right, acknowledging the inventor's effort and granting them exclusive control over their invention. Alternatively, they can be viewed as a trade-off, where society grants inventors temporary monopoly power in exchange for sharing their innovation and eventually allowing it to enter the public domain.

Paul Hawken / Nature Capitalism

Paul Hawken is an American environmentalist, entrepreneur, and author, who has contributed to the development of the concept of Natural Capitalism. Natural Capitalism is an economic framework that emphasizes the importance of natural capital and the need for sustainable business practices.

Paul Piff's Monopoly board game experiments (and what they showed)

Paul Piff used a Monopoly board game to study the effects of wealth inequality on behaviors and attitudes. 1) The rigged game: In one experiment, Piff manipulated the game by giving one player a significant advantage right from the start, including more money and extra dice rolls. demonstrated how a rigged system can lead to the reinforcement of existing advantages and the emergence of negative behaviors in those who benefit from the unfair advantage. 2) behavioral changes: Another experiment showed that as players accumulated more wealth and power in the game, they started displaying more selfish and entitled behaviors. 3) Ethical Behavior: Participants who were in a higher economic position during the game were more likely to engage in unethical behaviors, such as stealing resources from other players or breaking the rules.

Phillips Van Parijs / Basic Income Capitalism

Philippe Van Parijs is a Belgian philosopher and political economist, who is one of the leading proponents of universal basic income (UBI) and the idea of Basic Income Capitalism. Basic Income Capitalism is the notion that everyone should have a universal basic income (UBI)

Monopoly Board game overview

Piff's Monopoly board game experiments demonstrated how economic inequality, even within the context of a simple game, can affect behavior and attitudes. They revealed that wealthier and more advantaged individuals tend to exhibit behaviors associated with entitlement, reduced empathy, and unethical conduct.

Public gatekeepers vs. private gatekeepers

Public gatekeepers refer to government agencies or regulatory bodies responsible for overseeing market competition, access, and fairness. Private gatekeepers, on the other hand, are dominant market players that control access to essential resources, platforms, or services, potentially creating barriers to entry or influencing market dynamics.

Public goods (examples and why markets fail to supply them):

Public goods are goods that are non-excludable (people cannot be prevented from using them) and non-rivalrous (one person's use does not diminish the availability to others). Examples include clean air, national defense, and public parks. Markets often fail to provide public goods because there is no incentive for private companies to supply them, as they cannot exclude non-payers and cannot profit from their provision.

John Rawls / Distributive Justice

Rawls proposed a concept of justice based on the idea of fairness and equality of opportunity. He argued for a system where societal inequalities are organized in a way that benefits the least advantaged members of society. Rawls believed that justice should be achieved through a hypothetical social contract among individuals who are unaware of their own position in society, a concept he called the "original position."

Intolerable risks and "maximin" reasoning

Rawls's "maximin" reasoning is a decision-making strategy that seeks to maximize the minimum possible outcome. In the context of his theory of justice, this means organizing society so that the least advantaged members are as well off as possible. This strategy is employed under the "Veil of Ignorance,"

Individual vs. governmental vs. corporate responsibility:

Responsibility for addressing plastic pollution and promoting recycling should be shared among individuals, governments, and corporations a) Individuals can make conscious choices to reduce plastic consumption, recycle properly, and support eco-friendly products and practices. b) Governments can implement policies and regulations to reduce plastic production and waste, promote recycling, and incentivize sustainable alternatives. c) Corporations can adopt sustainable practices, reduce their reliance on single-use plastics, and invest in the development of eco-friendly alternatives.

Richard A. Spinello / Pharmaceutical Pricing

Richard A. Spinello, in his work on pharmaceutical pricing, explores the complexities of drug pricing and the ethical implications of various pricing strategies employed by pharmaceutical companies.

Rotten / "Bitter Chocolate"

Rotten is a documentary series that explores the problems and challenges faced in the global food industry. "Bitter Chocolate", an episode from the series, focuses on the cocoa industry and the ethical issues surrounding its supply chain

The 4 layers of hidden taxes enabled by the current IP system:

Shaxson argues that the current IP system imposes hidden taxes in various ways: a) Higher prices: Patent monopolies allow firms to charge higher prices than they could in a competitive market. b) Litigation costs: The IP system can generate expensive legal disputes over patent infringements, raising costs for all parties involved. c) Innovation costs: Patent thickets and patent trolling can create barriers to innovation, requiring firms to navigate complex patent landscapes or face legal threats from entities holding patents for the sole purpose of extracting licensing fees. d) Administrative costs: The patent system itself requires significant resources to maintain, including government offices, staff, and legal professionals.

Arlie Hochschild's concept of "emotional labor"

Sociologist Arlie Hochschild introduced the concept of "emotional labor" in her book "The Managed Heart." Emotional labor refers to the process of managing one's emotions to fulfill the emotional requirements of a job. This can involve suppressing or evoking certain emotions to meet the expectations of customers, clients, or coworkers. Examples of jobs that involve a significant amount of emotional labor include customer service representatives, flight attendants, and nurses. Emotional labor can be demanding and may lead to stress and burnout for workers.

National competitiveness (and the "downgrading" race to the bottom problem):

Some argue that strong IP protections are essential for national competitiveness, encouraging domestic innovation, and attracting foreign investment. However, this can lead to a "race to the bottom" problem, where countries continually strengthen IP protections to attract investment, potentially undermining the global balance between promoting innovation and ensuring public access to new technologies or products.

Non-innovative business strategies (buying old drugs; "evergreening"; "charities"):

Some pharmaceutical companies engage in non-innovative business strategies to maintain high prices: a) Buying old drugs: Companies acquire rights to old drugs and significantly increase their prices without investing in innovation or improvements. b) Evergreening: Firms make minor modifications to existing drugs to extend patent protection and maintain high prices. c) Charities: Some companies establish patient assistance programs or support charities to help patients access expensive drugs, which can maintain high prices by reducing public pressure for price reductions.

Competitive advantages and economic benefits of sustainability:

Sustainability in business can lead to competitive advantages and economic benefits, such as cost reduction, innovation, risk mitigation, brand enhancement, and customer loyalty. Companies that invest in sustainable practices can reduce waste, lower energy consumption, and achieve operational efficiencies, which can translate into cost savings and higher profits.

The history of TRIPS (Trade-Related Aspects of Intellectual Property Rights):

TRIPS is an international agreement administered by the World Trade Organization (WTO) that sets minimum standards for IP regulation, including patents, copyrights, and trademarks. Established in 1995, TRIPS aimed to harmonize IP laws globally, requiring member countries to adopt specific IP protections and enforcement measures.

Technocracy

Technocracy is a system of governance or societal organization in which decision-making is driven by technical expertise and data-driven analysis, rather than political ideologies or economic interests. In the context of Carnegie's "Gospel of Wealth," the idea of technocracy is connected to the belief that successful businessmen and experts should be the ones making decisions about how to best allocate resources and address social problems.

Amazon's "Gazelle Project":

The "Gazelle Project" was an internal strategy employed by Amazon to strengthen its position in the book market by aggressively negotiating better terms with small publishers. Amazon's approach was likened to a cheetah chasing down a gazelle, as the company targeted vulnerable publishers, pressuring them to accept lower prices and less favorable terms. This strategy enabled Amazon to increase its profit margins and consolidate its control over the book market.

The Difference and Opportunity Principles

The Difference Principle is the second part of Rawls's second principle of justice, which deals with social and economic inequalities. It states that such inequalities are permissible only if they satisfy two conditions: A) They are attached to positions and offices open to all under conditions of fair equality of opportunity. This is the Equality of Opportunity Principle, which ensures that everyone has a fair chance to compete for positions and offices in society. B) They are to the greatest benefit of the least advantaged members of society. This is the Difference Principle, which allows inequalities only if they benefit the worst-off members of society.

How the intellectual property (IP) system enables monopolies:

The IP system, including patents, grants exclusive rights to inventors for a limited period, allowing them to control the use, production, and sale of their inventions. This can create monopolies, as competitors are legally barred from producing or selling similar products during the patent's duration. While patents are meant to promote innovation by rewarding inventors, they can sometimes stifle competition and limit access to new technologies or products.

The Liberty Principle

The Liberty Principle, also known as the Principle of Equal Basic Liberties, is the first principle in Rawls's theory of justice. It states that each person has an equal right to a fully adequate scheme of equal basic liberties compatible with a similar scheme for all others. These liberties include political liberty, freedom of speech, freedom of conscience, and freedom of personal property.

The "Red Queen" phenomenon (and how it applies to antitrust):

The Red Queen phenomenon, derived from Lewis Carroll's "Through the Looking-Glass," refers to a situation in which entities must constantly adapt and evolve to maintain their relative position in a competitive environment. In the context of antitrust, the Red Queen phenomenon can be applied to the idea that firms must continually innovate and compete to stay ahead of their rivals. However, the common ownership hypothesis suggests that institutional ownership may undermine the Red Queen phenomenon by reducing the incentives for firms to compete aggressively against each other. This can lead to a less dynamic market, with lower innovation, higher prices, and reduced consumer welfare.

The hourglass structure of the cocoa industry

The cocoa industry exhibits an hourglass structure, with a large number of cocoa farmers at the base, a small number of powerful chocolate manufacturers and traders in the middle, and a large number of consumers at the top. This structure creates a power imbalance, as the few powerful players in the middle can dictate prices and exert significant influence over the supply chain. As a result, cocoa farmers often receive minimal compensation for their labor and may resort to unsustainable and unethical practices, such as child labor and deforestation, to cut costs and maintain their livelihoods.

The common ownership hypothesis:

The common ownership hypothesis suggests that when a small group of institutional investors hold large stakes in multiple competing firms within the same industry, it may lead to reduced competition and anticompetitive behavior. This is because the institutional investors' interests are aligned with all the firms they hold shares in, potentially discouraging aggressive competition among those firms in order to protect the overall value of their investment portfolios.

The argument from diminished incentive (and counterexamples):

The diminished incentive argument suggests that without the protection of patents, inventors would have little motivation to invest time and resources in research and development, as competitors could easily copy their work. However, counterexamples exist where industries thrive without relying on strong patent protection, such as the fashion industry, where new designs are not patented, but innovation and competition remain strong.

Actual rates of infection vs. what was required to be publicly reported (Covid's Hidden Troll)

The documentary highlights discrepancies between the actual rates of infection among agricultural workers and the numbers that were publicly reported. Due to a lack of comprehensive data and underreporting, the true extent of the COVID-19 crisis among agricultural workers may be underestimated. Factors contributing to underreporting include fear of retaliation or job loss, language barriers, and inadequate access to testing.

How the companies profiled responded to infections among employees:

The documentary suggests that some companies did not adequately respond to infections among their employees. Examples of inadequate responses include: Failing to provide proper personal protective equipment (PPE) or enforce social distancing measures Not offering paid sick leave or quarantine accommodations, forcing workers to choose between their health and their income Retaliating against workers who spoke up about unsafe conditions or demanded better protections In some cases, companies may have taken steps to improve conditions, but the documentary suggests that these efforts were often insufficient to protect workers from the risks associated with the pandemic.

Free-rider problem (and examples):

The free-rider problem occurs when individuals benefit from a public good without contributing to its cost. Examples include individuals who benefit from public services (e.g., roads, police protection) without paying taxes or people who download copyrighted material without paying for it.

Freedom of contract rule (transacting parties vs. stakeholder interpretation)

The freedom of contract rule refers to the idea that parties should be free to negotiate and enter into contracts without government interference. In the transacting parties interpretation, the focus is on the rights of the contracting parties, while the stakeholder interpretation considers the wider impact of the contract on all stakeholders, including employees, consumers, and the environment.

The innovation argument for high prices (and why it doesn't apply in many cases)

The innovation argument suggests that high drug prices are necessary to fund the research and development of new and innovative drugs. While this argument has some merit, it doesn't always apply. Many drugs with high prices are not the result of significant innovation, but rather incremental improvements or strategic pricing decisions. Additionally, public funding and research contribute significantly to drug development, which may not be reflected in the final pricing.

Prisoner's Dilemma (and examples)

The prisoner's dilemma is a situation in game theory where two rational individuals, acting in their self-interest, reach a suboptimal outcome. Examples include arms races (where countries continue to build weapons even though disarmament would be mutually beneficial) and overfishing (where individual fishermen catch more fish to maximize profit, leading to the depletion of fish stocks).

John Rawls's "veil of ignorance" thought expirement

The thought experiment involves individuals placed behind a metaphorical "veil of ignorance" that obscures their personal characteristics and circumstances. Behind this veil, individuals are unaware of their gender, race, social status, talents, wealth, or any other attributes that could influence their position in society. From this position of ignorance, individuals are tasked with deciding on the principles that will govern the distribution of resources, rights, and opportunities in society. The idea is that by not knowing their own position in society, individuals will make choices that are fair and impartial, ensuring justice for all.

The tragedy of the anti-commons:

The tragedy of the anti-commons occurs when multiple individuals or organizations hold overlapping IP rights, making it difficult for others to access or use the underlying innovation. This can stifle innovation and lead to underutilization of valuable resources, as potential users face legal barriers, high costs, or uncertainty when attempting to navigate the complex web of IP rights.

Tragedy of the commons (and examples):

The tragedy of the commons is a situation where individuals, acting in their self-interest, overuse a shared resource, resulting in its depletion or destruction. Examples include overfishing, deforestation, and air pollution.

How to solve Prisoners Dilemma

There are two primary solutions to the prisoner's dilemma. The first is introducing repetition, so that when Ahmad observes iElectronics cheating today, it can punish him tomorrow. The second is external enforcement, whereby a third party enforces good behaviour by wielding a capacity to punish cheaters.

Social Contract Theories of Political Legitmacy

These theories propose that the legitimacy of political power derives from a hypothetical social contract or agreement among individuals. Voluntary Agreement: Social contract theories suggest that individuals voluntarily agree to form a political community and establish a government to ensure their mutual benefit, protection, and the resolution of conflicts. The legitimacy of political power is derived from this initial agreement. State of Nature: Social contract theories often posit a hypothetical "state of nature" as a starting point, a situation where individuals exist without government or established social order. This state of nature is often characterized by natural rights, equality, and freedom, but also potential conflict and insecurity. Consent: Social contract theorists argue that individuals give their consent, either explicitly or implicitly, to be governed by accepting the benefits and protections offered by the government. This consent is considered the foundation of political legitimacy. Rights and Obligations: According to social contract theories, individuals have certain natural rights, such as life, liberty, and property. The government is then established to protect these rights. In return, individuals have obligations to abide by the laws and rules of the society. Limitations on Government: Social contract theories often propose limitations on governmental power to prevent tyranny and protect individual rights. The powers of the government are typically defined by the terms of the social contract and can be subject to the consent and scrutiny of the governed. Justification of Political Authority: Social contract theories provide a moral and ethical justification for political authority. They argue that political power is legitimate when it arises from the consent of the governed and serves the common good of society.

Universal Basic Income (UBI)

Universal Basic Income (UBI) is a social policy that guarantees a regular, unconditional cash payment to every citizen, regardless of their employment status, income, or wealth. The main idea behind UBI is to provide a financial safety net, ensuring a minimum standard of living for all members of society. Universal Basic Income (UBI) is a social policy that guarantees a regular, unconditional cash payment to every citizen, regardless of their employment status, income, or wealth.UBI works by distributing a fixed amount of money periodically (e.g., monthly) to all citizens.

"Real libertarian freedom"

Van Parijs argues that a UBI is necessary for promoting "real libertarian freedom." In his view, libertarian freedom should not be understood merely as the absence of coercion but rather as having access to the resources and opportunities needed to pursue one's life goals.

Van Parijs case for a UBI

Van Parijs's case for a UBI is based on several key arguments: A) Redistribution of opportunities: Van Parijs contends that a UBI can help redistribute opportunities by providing individuals with the necessary resources to exercise their freedom. B) Reducing exploitation: A UBI would help reduce exploitation in the labor market by providing a financial safety net. Workers would no longer be forced to accept unfair wages or poor working conditions due to financial insecurity. C) Encouraging autonomy: By providing a basic income, individuals would have more freedom to make choices about their lives, such as pursuing education, engaging in artistic or creative endeavors, or spending time with family without the constant pressure to find paid work. D) Strengthening democracy: A UBI would empower citizens by reducing economic inequality, which often translates into political inequality. With a more level playing field, citizens would have a greater voice in the democratic process.

Problems with recycling (esp. compliance and incentives):

a) Compliance: Many people do not recycle properly, leading to contamination of recyclable materials, which can render them unusable. b) Incentives: Recycling programs often lack financial incentives, making it less appealing for consumers and businesses to participate. c) Limited recycling capacity: Not all plastics can be effectively recycled, and recycling facilities may not have the capacity to process the volume of waste generated.

Problems with single-use plastics (esp. health hazards and environmental effects):

a) Health hazards: Chemicals in plastics can leach into food and beverages, potentially leading to health issues such as hormonal imbalances, reproductive problems, and cancer. B) Environmental effects: Single-use plastics contribute to pollution, as they often end up in oceans, waterways, and other natural habitats, harming wildlife and ecosystems.

How advertising campaigns can shift perceptions of responsibility (and examples):

a) Highlighting the negative impacts of single-use plastics and promoting sustainable alternatives, such as reusable bags or biodegradable packaging. b) Encouraging individuals to take personal responsibility for their plastic consumption and recycling habits. c) Pushing for corporate accountability, as seen in campaigns targeting companies like Coca-Cola and Nestlé for their contributions to plastic pollution.

Alternative models and possible solutions to the problem of drug pricing:

a) Price negotiation: Allowing government agencies or other large buyers to negotiate drug prices directly with pharmaceutical companies could help lower prices. b) Value-based pricing: Linking drug prices to their effectiveness or the value they provide to patients could create a more equitable pricing model. c) Patent reform: Reforming the patent system to discourage evergreening and other non-innovative strategies could promote genuine innovation and increase competition. d) International reference pricing: Comparing drug prices to those in other countries and implementing price caps based on international benchmarks could help control prices in the US market.