In the January 6, 1991, issue of the Washington Post Magazine, reporter Walt Harrington wrote a profile of Bryan Stevenson. Mr. Stevenson is a 31-year-old working-class African-American from Delaware who graduated from Harvard Law School and the Kennedy School of Government. Like the typical graduate of Harvard Law School, Mr. Stevenson had the opportunity to join the worlds of six-figure corporate law or high-visibility politics. Rather than follow his colleagues, however, Mr. Stevenson works seven-day, eighty-hour weeks as director of the Alabama Capital Representation Center. He appeals death sentences, handling twenty-four death-row cases himself, supervises five other lawyers who cover about thirty cases, and raises federal government and foundation funding. He does this living a Spartan existence on a salary of $24,000, refusing even the $50,000 directorship salary offered to him.

Benefit/cost analysis is a technique for evaluating programs, procedures, and actions; it is not a moral theory. There is significant controversy over the moral justification of benefit/cost analysis. When a procedure for evaluating social policy is challenged on moral grounds, defenders frequently seek a justification by construing the procedure as the practical embodiment of a correct moral theory. This has the apparent advantage of avoiding difficult empirical questions concerning such matters as the consequences of using the procedure. So, for example, defenders of benefit/cost analysis (BCA) are frequently tempted to argue that this procedure just is the calculation of moral Tightness – perhaps that what it means for an action to be morally right is just for it to have the best benefit-to-cost ratio given the accounts of “benefit” and “cost” that BCA employs. They suggest, in defense of BCA, that they have found the moral calculus – Bentham's “unabashed arithmetic of morals.” To defend BCA in this manner is to commit oneself to one member of a family of moral theories (let us call them benefit/cost moral theories or B/C moral theories) and, also, to the view that if a procedure is (so to speak) the direct implementation of a correct moral theory, then it is a justified procedure. Neither of these commitments is desirable, and so the temptation to justify BCA by direct appeal to a B/C moral theory should be resisted; it constitutes an unwarranted short cut to moral foundations – in this case, an unsound foundation. Critics of BCA are quick to point out the flaws of B/C moral theories, and to conclude that these undermine the justification of BCA. But the failure to justify BCA by a direct appeal to B/C moral theory does not show that the technique is unjustified. There is hope for BCA, even if it does not lie with B/C moral theory.

Expected-utility (EU) theory has been a popular and influential theory in philosophy, law, and the social sciences. While its original developers, von Neumann and Morgenstern, presented it as a purely predictive theory useful to the practitioners of economic science, many subsequent theorists, particularly those outside of economics, have come to endorse EU theory as providing us with a representation of reason. But precisely in what sense does EU theory portray reason? And does it do so successfully?

There are two strikingly different answers to these questions in the literature. On the one hand, there is the view of people such as David Gauthier that EU theory is an implementation of the idea that reason's only role is instrumental. On the other hand, there is the view suggested by Leonard Savage (1954/1972; and see Anderson, 1993) that the theory is a “formal” and noninstrumental characterization of our reasoning process.

In Stabilizing Dynamics (1991) Roy Weintraub provides a history of stability theory from the work of Hicks and Samuelson in the late 1930s to the Gale and Scarf counterexamples in the 1960s. Unlike his earlier work in the history of general equilibrium theory (1979, 1985, 1988) this recent contribution is not an attempt to fit the Walrasian program into the narrow framework of some particular philosophy of natural science (such as Lakatos's methodology of scientific research programs). Rather, the theme in Stabilizing Dynamics is broadly social constructivist. Simply put, the constructivist view of science is “that scientific knowledge itself is constructed socially, in communities of scientists: Knowledge is constructed, not found” (p. 9).

In spite of the important discoveries made by Adam Smith and later by the economists of the Austrian School, Friedrich Hayek remained intellectually challenged by the miracle of the price mechanism. As it turned out there was still some pioneering to do in describing the price mechanism. This became clear when Hayek identified the dispersal of information relevant to exchange transactions as the central issue of economic study. In the context of his distinction between competition as a state of things and as a process (Hayek, [1946]1980, pp. 92–106) the price mechanism manifests itself as a powerful integrator of information which is at first sight hopelessly dispersed in modern society. In 1945 he pointed out another intellectual challenge which the miracle of the price mechanism poses: How could such a marvelous functionality come into existence? “I am convinced that if it [the price mechanism] were the result of deliberate human design, and if the people guided by the price changes understood that their decisions have significance far beyond their immediate aim, this mechanism would have been acclaimed as one of the greatest triumphs of the human mind” (Hayek, [1945]1980, p. 87). It is precisely because the free determination of prices is obviously not an invention, and because actors on the market in general do not realize that their decisions are at once also signals for the information-processing system that the market is, that in general this market order is not highly estimated. The market order is nevertheless the best illustration of the dual principle that the most beautiful forms of complex functionality are not deliberately created and are not deliberately maintained (“the twin ideas of evolution and spontaneous order,” as Hayek put it; Hayek [1978]1985, p. 250; [1979] 1982, p. 158).