CPE exam 1
Max Weber's Definition of the State
"A State is an institution which claims a monopoly of the legitimate use of force over a given territory."
Historical principles of justice
Nozick's theory that the justice of a distribution depends on how it came about. Cites that Marx also believed in this.
Ship of State Metaphor
Plato's Socrates compares the population at large to a strong but nearsighted shipowner whose knowledge of seafaring is lacking. The quarreling sailors are demagogues and politicians, and the ship's navigator, a stargazer, is the philosopher. More recently, it has become a staple of American political discussion, where it is viewed simply as its image of the state as a ship, in need of a government as officers to command it - and conspicuously absent of its anti-democratic, pro-absolutist original meaning.
End state principle of justice
Rawl's theory that the justice of a distribution depends on who has what, judged structurally-identity of persons doesn't matter. Utilitarianism, welfare state.
Rothbard vs. Friedman Defense of Anarcho-Capitalism
Rothbard: "I define anarchist society as one where there is no legal possibility for coercive aggression against the person or property of any individual. Anarchists oppose the State because it has its very being in such aggression." - Godfather of anarcho-capitalism. Believes in natural rights and the non-aggression axiom. Every man is a self owner (Homesteading) - government violates natural rights because it is based on force, therefore illegitimate. Gives a rights and ethic based defense - government is morally wrong because it violates rights. Freidman: Consequentialist - economic approach as to why government is wrong - not rights based. Book Machinery of Freedom - government is inefficient - based on results instead of rights. Cost benefit analysis of state vs no state - no state works better to achieve ends. Market does better job of creating public goods than government - anarcho-capitalism would be beneficial to most people, even poor - privatization is better than government.
Internalizing externalities
The act of making a change in a company's private costs or benefits in order to make them equal to the company's social costs or benefits. The market-driven approach to correcting externalities is to "internalize" third party costs and benefits, for example, by requiring a polluter to repair any damage caused. But, in many cases internalizing costs or benefits is not feasible, especially if the true monetary values cannot be determined.
the exchange paradigm of contractarian politics
When an exchange is made, it is known that both parties preferred it. Gain access to information when we exchange. Only information that makes us capable of social dilemma is by exchange/trade. Values emerge as trade takes place. Makes no assumption about the outcome of the process of exchange. Its theory is built instead from the "bottom up"—up from individual behavior rather than down from trading equilibrium. Consistency with the principle of methodological individualism is therefore guaranteed by construction. Liberated from the assumption of trading equilibrium, it is possible to be more realistic about the trading environment. Exchange opportunities are not given, but must be found or created. Prices are not provided by magic, but must to be set by someone. Exchange involves interaction not with an impersonal market but with other individuals. Promises of future performance are not always kept. Goods and traders are heterogeneous, so that individuals require information not only on prices but also on the quality of goods and the trustworthiness of counterparties. Such information is scarce and often asymmetric. Individuals are not always insignificant relative to the market: markets are often thin, and prices may be set strategically or be subject to bargaining.
public goods
a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization. (Cowen) public goods have 2 distinct aspects: nonexcludability and nonrivalrous consumption. "Nonexcludability" means that the cost of keeping nonpayers from enjoying the benefits of the good or service is prohibitive (Fireworks). Even nonpayers could watch the show without increasing the show's cost or diminishing anyone else's enjoyment. In other words, the relevant consumption is nonrivalrous. Non-excludability—non-paying consumers cannot be prevented from using it—and non-rivalry—when you consume the good, it does not reduce the amount available to others.
methodological individualism and the formation of the state
a group is made of individuals, there is nothing bigger than the individual - government is not living and breathing, can't sacrifice something to the good of it - it is not a social entity
Philosopher Kings and Society
a ruler who possesses both a love of knowledge, as well as intelligence, reliability, and a willingness to live a simple life.
burning bridge game theory
a way of sustaining a change by ensuring there is no way back. "Burning bridges" is a deliberate way of preventing any backsliding by removing any method by which people can go back. This can be a bold move when you are not sure whether what you are doing will succeed. It does, however concentrate minds, and managers who may not be fully committed to the change are now strongly motivated to continue. In warfare, burning a bridge behind you stops any thought of retreat and forces you to advance.
constitutional level of unanimity
agree unanimously to set of rules, but might not agree to post constitutional level. He will tend to agree on arrangements that might be called "fair" in the sense that patterns of outcomes generated under such arrangements will be broadly acceptable, regardless of where the participant might be located in such outcomes.
CPE
choice among constraints. Look at proper use of institutions to bind us and to allow us to have mutual cooperation, and to choose preferences over preferences
post-constitutional stage
choosing a strategy for playing the game in the light of the rules already chosen
decisions for collective action or inaction
collective action calls for cooperation to be successful. The situation in which multiple individuals would all benefit from a certain action, but has an associated cost making it implausible that any individual can or will undertake and solve it alone.
protective state
constitutional, binary - to insure that the terms of the conceptual contractual agreement are honored, that rights are "protected." state is not involved in producing "good" or "justice: - other than that which is embodied indirectly through a regime of contract enforcement. No gray area - yes or no decisions are made by protective state. Characterized by precepts of neutrality.
rules time/place dependent
context matters. Constitutions should be context driven and not truth-seeking. Government is about legitimacy.
Hobbes and the equality of man
continually equals, no incentive to invest in cooperation; very high risk to advance, industry, knowledge. the sovereign is the only way to put to end the perpetual problems of the state of nature. We transfer power to the sovereign via the social contract to allow the sovereign to make some decisions and utilize some power to keep us out of the state of nature
contractarian vs. natural rights
contractarian: (Buchanan) - rights originate with individual agreement, not higher/natural law. Dismisses moral values - humans don't agree on nautral values. Legitimate authority of government must derive from consent of governed, where form and content of consent derives from the idea of contract or mutual agreement. natural rights (Locke): existing rights that should be protected under a constitution, no change in definition of these rights
decision making costs function
costs of arriving at a set of rules that will govern society. Upward sloping - practical, strategic (know graph) [DM] - care about total cost, where it crosses doesn't matter - creates curve at top - minimum of combined cost - % rule of number of people required to make changes
contractarian source of value
derive this within preferences of the persons who trade. Rights are determined through value and exchange. All value derived from individual - social preferences come to society through individual - all individuals count, are treated as moral equivalents. Society is good if it meets individual values/preferences.
Non-distributed distribution
distributive justice of Rawls assumes that there is a specific distributor of outcomes in society. Rather there is no central group that jointly decides how things are doled out - some distributions do not imply a previous distributing judge. Example of choosing husband/wife - no one assigns that.
emergence of property
don't want to keep exerting energy by protecting property and stealing the property of others. Trade is the basis, both accept and agree to assignment - both have incentive to do so because it is less threatening and expends less energy.
Hobbesian introspective defense of behavior assumptions
each man is operating to survive and preserve himself. Man seeks to secure what is his - travels well accompanied, locks doors, rides armed, etc
Pete Leeson and the Hard Cases of Anarcho-Capitalism
emphasizes government vs. governance. Possible to have governance without defined state - competitive system of pubic goods, etc. Governance is broader than government - government is just one system that provides governance. Gives example of pirate societies - moral corruption, however actually pretty tame - pirate flag was just a signal claiming they'd kill, but didn't actually want to. If pirates can make it work, thought is more civilized people would do well with anarcho-capitalism. Somalia - did better without state than with state.
Interdependence cost
external cost + decision making cost. Minimize it - optimal (minimum point of curved line) (Know graph) - helps determine if it is worth it or not to make a change or create a new rule - do benefits outweigh costs - (is rule against negative externality more costly than negative externality? don't go through with it)
Taxation as forced labor
force a "person to work n hours for another's purpose." Even if it is good for society, it is still unjust. What is the difference between forced labor and being forced to pay with money you made from work? - still stealing labor. Using people as means for the ends of others. Usually attempted to be justified by saying cooperative gains are then divided into what we agreed on - untrue, still redistribution.
free riders vs. forced riders
free riders: problem occurs when those who benefit from resources, goods, or services do not pay for them, which results in an underprovision of those goods or services. (fireworks show) forced riders: government created problem by compelling persons to support projects they do not desire. (pacifist required to pay for defense)
The Experience Machine
gives people any experience they desire, all they have to do is plug their brain in - they'll believe that it's happening, won't know they're hooked up to machine. We don't plug in because we want to do certain things, and not just have experience of doing them. Want to be a certain way, a certain sort of person. Limits us to man-made reality - world would be no deeper or more important than that which people can construct.
central diagram of calculus of consent
google?
Locke rights under government
government protects the natural rights that we already have - does not give us rights (Hobbes), but rather protects against oppression
entitlement theory
historical concept, The theory is Nozick's attempt to describe "justice in holdings" —or what can be said about and done with the property people own when viewed from a principle of justice. Comprised of 3 elements - 1. acquire holding in accordance with principle of justice 2. acquire holding in accordance with principle of justice in transfer 3. no one is entitled except for in cases 1 and 2.
temporal dimensionality of choice
implications of the simple fact that people choose among alternatives in the knowledge that their choices will affect the options available to them in subsequent periods. This provides one "reason for rules"—rules that will impose binding constraints on choice options after the rules themselves have been established. That is to say, in either a private-choice or a public-choice role, persons may choose to restrict their own futures, and such behavior may be wholly rational.
Locke labor to property
Labor is central to property - every person has property in his own body; mix labor with possession and becomes property; individuals earn property rights through labor and can defend them justly via natural law. Government is set up to protect rights that we already have; not creating rights. Preservation of property is the end of government.
(Locke) Natural Law
laws we are subject to (right and wrong) are established in state of nature - exists before entering into a governmental agreement. Natural rights are inherent - the executions of the law of nature is, in that state, put into every man's hands.
Wilt Chamberlain Example
liberty upsets patterns of justice. In a world of Rawl's maximin. Wilt Chamberlain is an amazing bball player - people will use their liberty to pay for things that they want - equality would be thrown off since Wilt's utility increases and the utility of others decreases - huge disparity in holdings - would constantly need extreme intervention to help minimum group as much as possible. No end state justice could be possible without continuous intervention of voluntary exchange.
ultraminimal state
maintains a monopoly over all use of force except that necessary in immediate self-defense, and excludes private (agency) retaliation for wrong and exaction of compensation - provides protection for services only to those who purchase its protection/enforcement.
external enforcement of rules
man feels alienated from government because he feels governed by external institutions. Both persons will seek something analogous to Crusoe's alarm clock, some instrument that is external to the participants (potential violators all) and which may be programmed in advance, which may be counted on to detect and to punish violations of the agreement, and to do so impersonally and impartially. Both parties will place a higher value on external institutions of enforcement than on adversely chosen internal ones. Both parties will prefer that the rules which they mutually choose be enforced by a third party, a stranger, by forces outside and beyond the participating group. Ideally, some wholly impersonal mechanism, a robot that could do nothing but follow automatized instructions, might be selected. Failing this, resort to third-party adjudication produces "government" of the ideal type in practicality.
Night-Watchmen State
minimal state - comprising the minimum necessary functions to maintain conditions of laissez-faire capitalism. In the strictest sense, it is a state whose only legitimate function is the maintenance of law and order and enforcement of strictly capitalist property law, and the only legitimate governmental institutions are the military, police, and courts. In the broadest sense, it extends to various civil service and emergency-rescue departments (such as the fire departments), prisons, the executive, the judiciary, and the legislatures as legitimate government functions.
impact of higher external costs
minimum of interdependence cost is to the right. Super majority, heterogeneous population. Diversity in population - different religion, race, culture, income, etc. Different desires, external costs increase, people don't get what they want more often.
(Hobbes) Social Contract Theory
need to find a way to get the mutual gains from entering in to a Commonwealth, but their needs to be something that binds these decision to actual create that civil society that is better off for both - The emergence of government through a social contract is the solution (Contractarian State)
moral precepts
one of two purposeful constrains on freedom. precepts that can guide both present- and future-period choices.
Outcome emerging from multiple actors
optimization within society requires cooperation.
pre-commitment strategy
party to a conflict uses a commitment device to strengthen its position by cutting off some of its options to make its threats more credible. Group commits by cutting off some options - making them no longer feasible. (Robinson Crusoe committed to horse Friday bc he knows he'll wake him up - committed to waking up)
The nature of rights in Hobbes' system
people don't have natural rights, rather in the state of nature, it is just you, me and all of this stuff. So the only way to get out of the state of nature is to give rights to fellow man, through a contract like Leviathan
Prisoner's Dilemma
Unless there is a rule or convention that dictates the two players to choose row/column 1, then privately rational and utility-maximizing behavior will guarantee the result in cell 4. Need for a rule in order to prevent an undesirable outcome (cell 4). Solution to society = cooperate, cooperate.
Allegory of the Cave
a theory put forward by Plato, concerning human perception. Plato claimed that knowledge gained through the senses is no more than opinion and that, in order to have real knowledge, we must gain it through philosophical reasoning.
Nozick's Anarchy Question
can a state be legitimate?
constitutional stage
choosing the rules by which we are to play the game
The natural distribution
distribution comes in initial leap from anarchy - directly linked to command over goods and freedom of behavior in natural state. Outcome; not necessarily rights. Acknowledges that each has some rights and agree on what they are; both parties wasting resources to protect stock of what is ours in state because of natural distribution - not our naturally, we have to take it - so we establish rights by agreeing
group size and decision rules
increase in population affects decision making cost. Decision making needs to graphically match external cost - optimal constitution is context dependent. Increase in populations makes decisions more difficult to make because more preferences to consider.
Non-Aggression Axiom
it is always wrong to use force to violate one's rights except for in self-defense
utilitarianism in rights
violations of rights (to be minimized) merely would replace the total happiness as the relevant end state - violate someone's rights when doing so minimizes the total amount of violations of rights in society.
preferences over preferences
want to commit to a certain type of preferences, even if we feel other preferences will arise
John Locke - 2nd Treatise
places sovereignty into the hands of the people. Locke's fundamental argument is that people are equal and invested with natural rights in a state of nature in which they live free from outside rule. In the state of nature, natural law governs behavior, and each person has license to execute that law against someone who wrongs them by infringing on their rights. People take what they need from the earth, but hoard just enough to cover their needs. Eventually, people begin to trade their excess goods with each other, until they develop a common currency for barter, or money. Money eliminates limits on the amount of property they can obtain (unlike food, money does not spoil), and they begin to gather estates around themselves and their families. People then exchange some of their natural rights to enter into society with other people, and be protected by common laws and a common executive power to enforce the laws. People need executive power to protect their property and defend their liberty. The civil state is beholden to the people, and has power over the people only insofar as it exists to protect and preserve their welfare. Locke describes a state with a separate judicial, legislative, and executive branch--the legislative branch being the most important of the three, since it determines the laws that govern civil society.
politics as exchange vs. politics as truth seeking
politics as exchange: government is intermediary for exchange politics as truth seeking: seeking a higher end through politics, still all human and equal in humanity
productive state
post-constitutional, non-binary - the constitutional process through which citizens accomplish jointly desired objectives, a means of facilitating complex exchanges among separate citizens, each of whom enters the contractual or exchange process with rights assigned in the more fundamental legal structure. In this role, government is internal to the community, and meaningful political decisions can only be derived from individual values as expressed at the time of decision or choice. Represented by legislative bodies and decision making - produce legislation.
side constraints
rights of other determine the constraints upon your actions. Essentially another consideration that is an absolute restriction on behavior.
Minimal state
same as night watchmen state. appears to be redistributive because it compels some people to pay for the protection of others. The minimal state, and only the minimal state, is morally justified. By a minimal state Nozick means a state that functions essentially as a "night watchman," with powers limited to those necessary to protect citizens against violence, theft, and fraud. By arguing that the minimal state is justified, Nozick seeks to refute anarchism, which opposes any state whatsoever; by arguing that no more than the minimal state is justified,
rule based contraints
second of two purposeful constraints on freedom. he imposition of binding rules or constraints. That is to say, the person may deliberately reduce the choice options anticipated to be open in t1 and beyond. There may be a conscious reduction in liberty or freedom of action. The purpose will be to close off possibilities for acting in ways that are deemed "inefficient" in carrying forward a preferred life plan.
anarchy as anything goes
sex, drugs, and rock and roll lol
Nozicks on rights
side constraint view of rights - they constrain actions: no one can do anything that would violate another person's rights. People are individuals, not tools for other individuals.
Lockean Reasons for Social Contract
social contract enforces natural law that already exists - protect the rights that we already have. Judgement is imperfect/human - hard to enforce because humans are biased - therefore enter into social contract to protect against oppression.
invisible hand explanations and the dominant protection agency
state emerged due to spontaneous order and invisible hand. Natural emergence through contracts and exchange rather than detailed account of emergence of state. Dominant protection agency is a monopoly, but there are holes in geography - de facto monopoly - by nature, in action (reality). If dominant protective agency deems any independent agency to impose risk on its clients, it will always win - independent is inferior, has to follow dominant's rules and is therefore being harmed. Dominant protection agency - not the same as state because - 1. appears to allow some people to enforce their own rights and 2. appears not to protect all individuals within its domain. Principle of compensation lets us get over illegitimacy of state - state has a monopoly on use of force that protects everyone in region - people that don't agree to dominant protection agency must therefore be compensated - this makes state legitimate.
Thomas Hobbes - Leviathan
state of nature is a state of war, life of man solitary, poore, nasty, brutish, and short - people need to devise a way to avoid war of all against all - men enter into a common wealth (Leviathan) to preserve themselves and their security. Give authority to group, individual, committee, etc - they have ability to punish/kick out cheaters. Chief goal = security, preservation of society
Nozick and the Legitimacy of the State
takes seriously the option of anarchy. Tries to legitimize the night watchman (minimal) state. Anarchy undercuts that subject/necessity of political philosophy. Is the state necessary? If so, it needs to be justified.
(Hobbes) State of Nature
the condition of human life in the absence of authority, rules, order, or law. A state of constant war - solitary, poore, nasty, brutish, and short. Consequences of equals in state of nature - continually equals, no incentive to invest in cooperation; very high risk to advance, industry, knowledge.
Network good
the effect that one user of a good or service has on the value of that product to other people. ... The more people who own telephones, the more valuable the telephone is to each owner. In relation to anarchy, protection agency is a network good.
shadow price
the estimated price of a good or service for which no market price exists.
Patterned distribution principle
the justice of a distribution depends on its matching some natural dimension(s). Hayek believed in patterns.
Weingast's Conception of a Constitution
the set of institutions governing political decision-making; the institutions or rules governing how policy choices are made, especially among alternative specifications of the economic system
The Ones Who Walk Away From Omelas
utopia city that is always happy due to the constant misery and suffering of a young child. Everyone knows about it, some choose to stay and live in happiness, some walk away from Omelas because they can't live with the guilty burden. Utilitarian approach to rights. If we don't want to violate rights, we'll take side constraint approach even if utilitarian approach may be more effective at maximizing rights. To violate a person's rights for the greater overall good does not sufficiently respect and take account of the fact that he is a separate person, that his is the only life he has.
calculus of consent
written by Buchanan and Tullock, influenced by Knut Wicksell. The analytical approach of the authors is based on methodological individualism - collective action is composed of individual actions and on the rejection of any organic interpretation of the state. A purely individualistic conception of collectivity is maintained: the state is an artifact, created by men and thus subject to change and perfection. Buchanan and Tullock maintain that only constitutional changes, which can be shown to be in the interest of all interested parties can be judged as "improvements" and therefore consider conceptual unanimity as the only legitimate decision-making rule.
Utilitarian dilemmas
-utility monsters who get greater gains -sacrifice animals, sacrifice people? -maximize total happiness requires continuing to add people so long as net utility is positive and sufficient to counterbalance loss in utility -can kill people if they are immediately substituted -forbid murder to prevent feeling of worry
Buchanan's 2 stages of analysis model
1. constitutional stage - choosing the rules by which we are to play the game 2. post-constitutional stage - choosing a strategy for playing the game in the light of the rules already chosen (KNOW GRAPH)
Rawlsian Reasons for Regulating Inequalities
1. wrong that some/much of society should be amply provided for while rest suffers. 2. prevent one part of society from dominating the rest 3. inequality is unjust in itself - not everyone can rise to highest rank 4. inequality is unjust - whenever society makes use of fair procedures
Weingast Paradox
A government strong enough to protect property rights and enforce contracts is also strong enough to confiscate the wealth of its citizens
intro to veil of uncertainty
Agreeing on rules, not on specific choice - (majority rule to pick restaurant, not specific restaurant). Agree on rules of game, not specific outcome. Persons are modeled as though they were faced with choices among rules of social order that are generally applicable and guaranteed to be quasi-permanent. It does not require persons who enter into the constitutional dialogues to shift moral gears. Persons are modeled as they are. The design of the choice alternatives must, however, affect their behavior, and in the limiting case, the veil is equivalent to that described much more fully by Rawles.
paradox of being governed
As the alarm bell arouses him from his nap, Crusoe faces one paradox of "being governed." He finds himself frustrated by an external constraint on his choice set, and he feels "less free" at that moment than he might have felt in the wholly voluntary act of rising from his bed. This sense of frustration may be repeated each and every morning, but Crusoe may continue to set the governing clock each evening. The rational rule-maker makes the trade-off between liberty and planned efficiency and includes an enforcement instrument in the contract. Once two men recognize each other's existence, potential conflict becomes possible, and some mutually acceptable disarmament agreement may be worked out, either before or after conflict takes place. This contract will embody agreed-on limitations on behavior which will, in turn, imply agreement on something that may be called a structure of rights. Each party will realize, however, that the agreement will have little effective value until and unless there is some security against violation by the other. Some enforcement mechanism, some device or institution, may accompany the initial contractual agreement, and each party will place a positive value on having such an instrument included.
Rights: Buchanan vs. Hobbes
Buchanan: rights can be legitimately derived only from the agreement among individuals as members of the polity. More Lockean - thinks state exists to protect property rights Hobbes: rights are defined by the government. Government can do what they want with rights.
credible (binding) commitment
Constraining self-interested choice to induce beneficial actions from other player
external costs function
Costs borne by the members of soceity who disagree with the rules ultimately decided on. Downward sloping - imposition of other preferences on you - when you're in minority (know graph) [EC] - care about total cost, where it crosses doesn't matter - creates curve at top - minimum of combined cost - % rule of number of people required to make changes
impact of heterogeneity
Diversity in population - different religion, race, culture, income, etc. Different desires, external costs increase, people don't get what they want more often. Homogeneous - no one wants to exploit their group, fairly similar desires - low external cost
How the dominant protection agency is NOT a state
Dominant protection agency - not the same as state because - 1. appears to allow some people to enforce their own rights and 2. appears not to protect all individuals within its domain. People or an organization must announce to the best of its ability that it will punish everyone whom it discovers to have used force without its expressed permission - reason why dominant protection agency is not state. Not a state because it does not serve all and is thus not a monopoly on force.
Hobbes vs. Smith on the Reason of Rules
Hobbes: prevent individuals from inhibiting one anothers' actions, prevent disastrous harm. Smith: interact to benefit from trade and individual labor.
Anarcho-Capitalism
Is a political philosophy, Advocates the elimination of the state, Believes society would improve itself through the discipline of voluntary institutions.
Locke compared to Hobbes
Locke: natural rights - life, liberty property. State of nature - Hobbesian - a state of perfect freedom to order actions and dispose of possessions and persons and people see fit; however harming others is not just in state of nature. No person to enforce natural law, still likely quickly degenerate into Hobbesian Jungle. Labor is central to property - every person has property in his own body; mix labor with possession and becomes property; individuals earn property rights through labor and can defend them justly via natural law. Government is set up to protect rights that we already have; not creating rights. Preservation of property is the end of government. Men do not lose their right to property by entering into society. They have not conceded their property to sovereign to reassign - sovereign is merely an enforcer of rights that already existed. Hobbes: People don't have natural rights, rather in the state of nature, it is just you, me and all of this stuff. So the only way to get out of the state of nature is to give rights to fellow man, through a contract like Leviathan. Surrender power to sovereign in exchange for the order that is imposed and maintained. Government has rights, individuals are parties to a continuing slave contract. Both believe in a state of nature and social contract
