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Where MLM Intersects MFA: Morally Suspect Goods and the Grounds for Regulatory Action
Business Ethics Quarterly ( IF 3.4 ) Pub Date : 2020-12-30 , DOI: 10.1017/beq.2020.42
Jeff Frooman

The market failures approach (MFA) to business ethics argues that economic theory regarding the efficient workings of a market can generate normative prescriptions for managerial behaviour. It argues that actions that inhibit Pareto optimal solutions are immoral. However, the approach fails to identify goods that should be regulated or prohibited from the market, something common to the moral limits to markets (MLM) approach to business ethics. There are, however, numerous assumptions underlying Paretian efficiency, including some about the preferences of market participants. Trade in some goods violates some of these assumptions, and so these goods are morally suspect and can be understood to indicate that the market for these goods is not moral. This creates grounds sufficient for regulating, and possibly prohibiting, these goods. To help determine whether it is then necessary to regulate the goods, I propose a supplementary economic analysis to ascertain why an assumption regarding a particular preference is being violated.

中文翻译:

MLM 与 MFA 相交的地方:道德可疑商品和监管行动的依据

商业伦理的市场失灵方法 (MFA) 认为,关于市场有效运作的经济理论可以为管理行为提供规范的处方。它认为抑制帕累托最优解的行为是不道德的。但是,该方法未能确定应受监管或禁止进入市场的商品,这是商业道德的道德限制市场 (MLM) 方法的共同点。然而,帕累托效率背后有许多假设,包括一些关于市场参与者偏好的假设。某些商品的贸易违反了其中一些假设,因此这些商品在道德上是可疑的,可以理解为表明这些商品的市场不道德。这为管制和可能禁止这些商品创造了充分的理由。
更新日期:2020-12-30
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