What Should Contractarian Economists Do?

Abstract

The paper examines Robert Sugden’s arguments for contractarian economics, which exclude objective valuation. From a metaethical stance we claim that it is possible and desirable to enrich the axiology of contractarian economics to make it more convincing and applicable. Analyzing Sugden’s argument against paternalism, we show that adopting a richer axiology is compatible with the contractarian framework. Examining Sugden’s claim for redistribution, we demonstrate that explaining the psychological stability of a market economy is problematic without a richer axiology. Considering sweatshop problem, we argue that without a richer axiology, contractarian economists are unable to recognize mutually advantageous exploitation. The paper concludes with the postulates on contractarian economics.