{"title":"What’s the Point of Efficiency? On Heath’s Market Failures Approach","authors":"Richard Endörfer, L. Larue","doi":"10.1017/beq.2022.21","DOIUrl":null,"url":null,"abstract":"This article reviews and criticizes Joseph Heath’s market failures approach (MFA) to business ethics. Our criticism is organized into three sections. First, we argue that, even under the ideal assumptions of perfect competition, when markets generate Pareto-efficient distributions, Heath’s approach does not rule out significant harms. Second, we show that, under nonideal conditions, the MFA is either too demanding, if efficiency is to be attained, or not sufficiently demanding, if the goal of Pareto efficiency is abandoned. Finally, we argue that Heath’s appeal to regulations and specific moral requirements as a remedy for market failures is unlikely to safeguard efficiency and exposes a number of general worries regarding the moral force of the MFA. We end this article with a constructive suggestion on how to adjust the MFA to avoid these problems while preserving its contractualist and Paretian spirit.","PeriodicalId":48031,"journal":{"name":"Business Ethics Quarterly","volume":" ","pages":""},"PeriodicalIF":3.4000,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Ethics Quarterly","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1017/beq.2022.21","RegionNum":2,"RegionCategory":"哲学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This article reviews and criticizes Joseph Heath’s market failures approach (MFA) to business ethics. Our criticism is organized into three sections. First, we argue that, even under the ideal assumptions of perfect competition, when markets generate Pareto-efficient distributions, Heath’s approach does not rule out significant harms. Second, we show that, under nonideal conditions, the MFA is either too demanding, if efficiency is to be attained, or not sufficiently demanding, if the goal of Pareto efficiency is abandoned. Finally, we argue that Heath’s appeal to regulations and specific moral requirements as a remedy for market failures is unlikely to safeguard efficiency and exposes a number of general worries regarding the moral force of the MFA. We end this article with a constructive suggestion on how to adjust the MFA to avoid these problems while preserving its contractualist and Paretian spirit.
期刊介绍:
Business Ethics Quarterly (BEQ) is a peer-reviewed scholarly journal that publishes theoretical and empirical research relevant to the ethics of business. Since 1991 this multidisciplinary journal has published articles and reviews on a broad range of topics, including the internal ethics of business organizations, the role of business organizations in larger social, political and cultural frameworks, and the ethical quality of market-based societies and market-based relationships. It recognizes that contributions to the better understanding of business ethics can come from any quarter and therefore publishes scholarship rooted in the humanities, social sciences, and professional fields.