Reconciling morality and rationality: Positive learning in the moral domain

Abstract

Morality and (economic) rationality are often understood as juxtaposed: a moral course of action would not be economically beneficial and vice versa. The paper reveals why this view, although common, is premature. In particular it delivers a game-theoretic analysis of moral problems and solutions and explains how moral principles function as what economists call "institutions". If this is the core of morality, there is no confl ict between morality and (economic) rationality, properly understood. However, institutions always go with suitable sanctions (positive and/or negative), an aspect frequently overlooked in the moral camp. This has important consequences for positive learning in the moral domain, in particular with respect to fostering morality and rationality.