Marc-Arthur Diaye

A Humean theory of choice of which rationality may be one consequence

For the reader who considers economic theory of choice as a special case of a more general theory of action, Humes discussion of the determinants of action in the Treatise of Human Nature (1739u200a–u200a40), in the Enquiry on Human Understanding (1748) and in the Dissertation on Passions (1757) deserves attention. However, according to some modern commentators, Hume does not seem to have given any evidence that would favour what nowadays we would consider as the kind of rationality involved in modern theories of rational choice. On the contrary, this paper arrives at the conclusion that consistency between preferences and choice, like the usual properties of completeness and transitivity, may be considered as outcomes of a mental process, described by means of a decision algorithm that aims to represent Humes theory of choice.

Why rationality may be a consequence of Hume's theory of choice

Facing R. Sugdens criticism of our interpretation, it is shown in this paper that rationality appears as a possible consequence of Humes theory of choice. We first argue that Sugdens dismissal of the preference relation from the type of rationality through which Humes theory is apprehended, is highly disputable, from the point of view of both standard choice theory and Humes theory of passions. Nonetheless, Sugdens criterion of rationality might be restated in Humean terms as a condition of non-revision of preferences in the dynamics of passions. But, since the process of choice that we have described explicitly takes into account the revision of preferences, and shows that, when this last is no longer required, rationality occurs as an outcome of this process, it is not really concerned by Sugdens criticism.

Financial Participation: Does the Risk Transfer Story Hold in France?

Several articles report a positive effect of financial participation (profit sharing (PS) and employee share ownership) on firms economic performance. This increase can be obtained in two main ways: by increasing the effort (extrinsic, intrinsic or commitment) of workers, directly or indirectly through worker selection; or by transferring more risk to the workers. The question is, of course, not neutral. Indeed, if the risk transfer story is true then it means that the increase of economic performance is obtained at the expense of workers, who take on the burden of more risks. The question is especially important in France where financial participation is associated with tax exemption for firms and where it is forbidden by law to substitute base wage and PS. The purpose of our article is to use an employer–employee dataset to answer the question of whether financial participation schemes are mainly designed as a risk transfer (from firms to workers) device.

Sharing the " Fame " of Quality Certification: Quality Supply Chain Effects Evidence

The objective of this paper is to provide an empirical evidence for whether the hierarchical position (determined by firm’s quality strength) of different types of quality supply chain categories implies the same hierarchy in terms of economic gains. Using data collected in France through a survey, we distinguish between four types of quality supply chain categories that help us to empirically construct a relationship between firms and their suppliers (quality certified/non-quality certified). Our findings, from a two-regime switching model, reveal that there is a positive correlation between the hierarchical positions of the quality supply chain categories and the impact on firm performance (measured by profit per employee).