Getting Hooked: Rationality and Addiction

Edited by Jon Elster Columbia University and Ole-Jřrgen Skog University of Oslo
Contributors: Jon Elster,Ole-Jřrgen Skog, Karl Ove Moene, Olav Gjelsvik, George Ainslie, Eliot Gardner, James David, Helge Waal, George Loewenstein, Thomas Schelling

The essays in this volume offer the most thorough and up-to-date discussion available of the relationship between addiction and rationality. This is the only book-length treatment of the subject and includes contributions from philosophers, psychiatrists, neurobiologists, sociologists, and economists. The volume offers an up-to-date exposition of the neurophysiology of addiction, a critical examination of the Becker theory of rational addiction, an argument for a 'visceral theory of addiction', a discussion of compulsive gambling as a form of addiction, several discussions of George Ainslie's theory of hyperbolic discounting, analyses of social causes and policy implications, and an investigation of the problem of relapse.


Preface and acknowledgments
Notes on contributors

Jon Elster and Ole-Jřrgen Skog

Addiction and social interaction
Karl Ove Moene

Addiction, weakness of the will, and relapse
Olav Gjelsvik

The dangers of willpower
George Ainslie

The neurobiology of chemical addiction
Eliot Gardner and James David

To legalize or not to legalize: Is that the question?
Helge Waal

Rationality, irrationality, and addiction - notes on Becker's and Murphy's theory of addiction
Ole-Jřrgen Skog

Gambling and addiction
Jon Elster

A visceral account of addiction
George Loewenstein

Thomas Schelling

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Deliberative Democracy


List of Contributors
Preface and Acknowledgment

Jon Elster

1. "Claro!": An Essay on Discursive Machismo
Diego Gambetta

2. Deliberation as Discussion
James D. Fearon

3. All Men Are Liars: Is Democracy Meaningless?
Gerry Mackie

4. Deliberation and Constitution Making
Jon Elster

5. Pathologies of Deliberation
Susan C. Stokes

6. Deliberation and Ideological Domination
Adam Przeworski

7. Arguing for Deliberation: Some Skeptical Considerations
James Johnson

8. Democracy and Liberty
Joshua Cohen

9. Health-Health Trade-offs
Cass R. Sunstein

10. Full Representation, Deliberation, and Impartiality
Roberto Gargarella

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Institutional Design in Post-Communist Societies



1 Introduction: agenda, agency, and the aims of Central East European transitions
1 The particular character of the Central and East European transitions
2 The role of military force and conflict
3 The political context: weak agents, diverse aspirations
4 The agenda: economic interests, political institutions, national identities
5 The demise of European state socialism
6 Consolidating the new order by institutionalizing agency: who shall be in charge?

2 Mapping Eastern Europe
1 Introduction
2 Bulgaria, Czechoslovakia, and Hungary at the outset of transformation: comparative country profiles
3 The demise of communist rule: modes of extrication
4 The shadow of the past: methodological remarks

3 Constitutional politics in Eastern Europe
1 Constitution making
2 Constitutional structure and provisions

4 Building and consolidating democracies
1 Introduction
2 The choice and consequences of the electoral systems
3 Political parties, cleavage structures, and party systems: the prospects for party competition

5 Building capitalism in Eastern Europe
1 Introduction
2 The state of the economic reform: constraints, dilemmas, paradoxes
3 Bringing the state back out
4 The furnishing of capitalism
5 The long road to functioning markets

6 Social policy transformation
1 Introduction
2 The old welfare regime and the reform ambitions after
3 Reform policies since 1989: institutional continuities and changes in the realm of social policy
4 Management of social protection: from state command to interest coordination
5 Comparative assessment: state of reform and performance

7 Consolidation and the cleavages of ideology and identity
1 Categorical conflicts and class conflicts
2 Ethnic and other "identity-based" cleavages
3 Politico-ideological cleavages
4 Conclusion

8 Conclusion: the unfinished project
1 Criteria and prerequisites of consolidation
2 Evaluation of the outcomes of the transition process in the four countries under study
3 How to explain the ranking
4 Concluding observations


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The Round Table Talks in Eastern Europe

In 1989 and 1990; Eastern European Communist regimes and opposition groups conducted a series of roundtable talks to peacefully negotiate the abolition of authoritarian rule and the transition to democratic governance. This volume documents that unprecedented process of national reinvention and constitution making. In five country-specific reports, senior scholars provide detailed accounts of the talks in Bulgaria, Poland, Hungary, Czechoslovakia, and the German Democratic Republic. These essays capture the historical circumstances of these countries - their traditions, customs, and the balance of influence between competing factions - that often took precedence over constitutional ideals. Also included is an essay on the political factors underlying the failure of negotiations between reform groups and the Chinese regime, providing an illuminating counterpoint to the path taken in Eastern Europe.


Jon Elster

1. The Roundtable Talks in Poland
Wiktor Osiatynski

2. The Roundtable Talks in Hungary
Andras Sajo

3. The Roundtable Talks in the German Democratic Republic
Ulrich K. Preuss

4. The Roundtable Talks in Czechoslovakia
Milos Calda

5. The Roundtable Talks in Bulgaria
Rumyana Kolarova, Dimitr Dimitrov

6. The Tiananmen Tragedy: The State-Society Relationship, Choices, and Mechanisms in Historical Perspective
Tang Tsou


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The Multiple Self

The essays in this volume consider the question of whether the self is a unity or whether it should be conceived without metaphor as divided - as a 'multiple self'. The issue is a central one for several disciplines. It bears directly on the account of rationality and the explanation of individual decision- making and behaviour. Is the hypothesis of a multiple self required to deal with the problems of self-deception and weakness of will; and can the conceptual tools developed in the study of interpersonal conflict be applied to the analysis of intra-personal struggle?

Most of the essays, by a number of leading philosophers, psychologists and economists, appear here for the first time. They bring out the interdisciplinary importance of the question, and will interest readers in all those areas. The volume will also usefully supplement The Foundations of Social Choice Theory, edited by Jon Elster and Aanund Hylland, which appears in the same series and is also concerned with the foundations of rationality.


Preface vii
Notes on contributors ix

Introduction 1
Jon Elster
I The loosely integrates self 3
II Self-deception and weakness of will 6
III Faustian selves 9
IV Hierarchical selves 11
V Successive selves 13
VI Parallel selves 17
VII The Freudian legacy 20
VIII Split brain - split mind? 23
IX Homo economicus and homo sociologicus 25
X The 'no-self' thery 28
XI Summary 30

1. Self-deception and the voter's illusion 35
George A. Quattrone and Amos Tversky
The logic of decision 36
The psychology of choice 37
Deceptive diagnosis 41
The voter's illusion 48
Discussion 54

2. The goals and strategies of self-deception 59
David Pears
I Introduction 59
II Motives and strategies 62
III Cases of latitude 66
IV Non-latitude cases 68

3. Deception and division 79
Donald Davidson

4. Deception and self-deception in Stendhal 93
Jon Elster

5. Self-deception, akrasia and irrationality 115
Amelie Oksenberg Rorty

6. Beyond microeconomics. Conflict among interests in a multiple self as a determinant of value 133
George Ainslie
Value in economics 133
Value in psuchology 135
Intra-personal bargaining 139
How the conflict of interests creates seeming irrationality 149
The result of intra-psychic bargaining 166

7. The mind as a consuming organ 177
Thomas Schelling

8. Goethe's Faust, Arrow's Possibility Theorem and the individual decision-taker 197
Ian Steedman and Ulrich Krause
I. Preliminary considerations 199
II. A Faustian decision-taker 201
III. Aggregating judgments 207
IV. An agent's character 210
V. Rational characters 216
VI. Further considerations 222

9. The Buddhist theory of 'no-self' 233
Serge-Christophe Kolm
I. Is Buddist behaviour genuinely maximizing? 233
II. Hedonism, eudaemonism, utilitarianism 236
III. The Budda's theorem, or the Middle Way 238
IV. Buddhist egoism, its limits and its meanings 244
V. Badness, unhappiness and the self: the grat illusion, Buddhist ontology 254
VI. Buddhist methodology. The dialectic of knowledge, action and cure.
The threefold relation to oneself: self-reference, self-production
and self-destruction 260

Index of names 267

The Multiple Self

The papers in this volume, as in the companion volume on Foundations of Social Choice Theory, result from the discussions in a 'Working Group on Rationality' set up under the auspices of the Maison des Sciences de l'Homme (Paris). Most of the papers were presented at two meetings of the working group. The first, on 'Irrationality: explanation and understanding' took place in January 1980, the second, on 'The multiple self' in January 1982. Some additional papers have also been solicited. Jon Elster's contribution is reprinted with permission of All Souls College, Oxford.

Herrnstein, R. J. (1988), Lost and Found: One Self, Ethics, 98 (3):566-578
Langley, C. (1990), Review of The Multiple Self, Australian Journal of Psychology, 42 (1):91-95
Monroe, Kristen Renwick (1988), Review of The Multiple Self, The Journal of Politics, 50 (2):532-535

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Foundations of Social Choice Theory


Preface vii
Notes on contributors viii

Introduction 1
Jon Elster and Aanund Hylland
Lateral connections 3
Interpretations 5
Assumptions 6

1. Lady Chatterley's Lover and Doctor Fischer's Bomb Party:
liberalism, Pareto optimality, and the problem of objectionable preferences
Brian Barry
I. Lady Chatterley's Lover 12
II. Doctor Fischer's Bomb Party 20
III. Discussion 27

2. The purpose and significance of social choice theory:
Some general remarks and an application to the 'Lady Chatterley problem'
Aanund Hylland
I. Introduction 45
II. Evaluating social systems 47
III. The liberal paradox 59

3. Laundering preferences 75
Robert E. Goodin
I. Input versus output filters 77
II. Grounds for laundering preferences 81
III. The self-laundering of preferences in collective choice 86
IV. Beyond self-laundering 91
V. Conclusion 96

4. The market and the forum: three varieties of political theory 103
Jon Elster

5. An historical Materialist alternative to welfarism 133
John E. Roeme r
I A taxonomy of exploitation 135
II The historical materialis imperative 145
III Desert, return, and surplus 151
IV Needs 153
V Some comparisons with Rawlsian justice158
VI Final remarks160

6. Interpersonal comparisons: preference, good, and the intrinsic reward of a life 165
Allan Gibbard
I. From happiness to the satisfaction of preferences 165
II. Anti-paternalism and the satisfaction of actual preferences 168
III. Ideally informed preferences 173
IV. Self-interested preference 175
V. The intrinsic reward of a life 179
VI. Interpersonal scrutability 183
VIII. Concluding Remarks 190

7. Judging interpersonal interests 195
Donald Davidson

8. Foundations of social choice theory: an epilogue 213
Amartya Sen
I Introduction 213
II Arrow's format and variations 215
III Well-being and interpersonal comparisons 219
IV Social choice and liberty 223
V Political view and social choice theory 232
VI. A concluding remark 237

Index 249

Foundations of Social Choice Theory

The origin of this volume was a conference on 'The foundations of social choice theory' that took place at Ustaoset, Norway in January 1981. There is no direct correspondence, however, between the papers read at the conference and the present volume - neither with respect to the contributors nor with respect to their contributions. We regret that Amos Tversky did not have the occasion to revise for publicatation his contribution to the conference. As a poor second-best, some of the central ideas in his paper are briefly set out in Elster's contribution.

The conference was sponsored by the Norwegian Research Council for Science and the Humanities, as part of the research project 'Democracy and Social Planning', and by the Maison des Sciences de I'Homme (Paris) as part of an ongoing 'Working Group on Ration- ality' We are very grateful to these institutions for their generous assistance.

J.E. and Aa.H.
Oslo, August 1983

Bonner, J. (1986), Review of F.S.C.T., Economic Journal 96 (384):1137-1139
Dummett, M. (1988), Review of F.S.C.T., Economics and Philosophy 4 (1):177-183
Hammond, P. J. (1989), Review of F.S.C.T, Ethics 100 (1):190-191
Morris, Christopher W. (1987), Review of F.S.C.T, American Political Science Review 81:1055-1057
Statman, M.(1987), Review of F.S.C.T. and Sour Grapes, Journal of Economic Literature, 25 (2): 742-743

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Rational Choice


Introduction 1
Jon Elster

1 Prudence, Morality, and the Prisoner's Dilemma 34
Derek Parfit

2 Behaviour and the Concept of Preference 60
Amartya Sen

3 Advances in Understanding Rational Behavior 82
John C. Harsanyi

4 The Economic Approach to Human Behavior 108
Gary Becker

5 The Framing of Decisions and the Psychology of Choice 123
Amos Tversky and Daniel Kahneman

6 Bounded Rationality, Ambiguity, and the Engineering of Choice 142
James G. March

7 The Logic of Relative Frustration 171
Raymond Boudon

8 The Political Economy of Peasant Society 197
Samuel Popkin

9 A Neoclassical Theory of the State 248
Douglass North

Index 261

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Constitutionalism and Democracy


Notes on contributors vii

Introduction 1
Jon Elster

1 Gag rules or the politics of omission 19
Stephen Holmes

2 Democracy as a contingent outcome of conflicts 59
Adam Przeworski

3 Consequences of constitutional choice: reflections on Tocqueville 81
Jon Elster

4 Liberal constitutionalism and its critics: Carl Schmitt and Max Weber 103
Rune Slagstad

5 Democracy and the rule of law: some historical experiences of contradictions in the striving for good government 131
Francis Sejersted

6 Neo-federalism? 153
Bruce A. Ackerman

7 Precommitment and the paradox of democracy 195
Stephen Holmes

8 American constitutionalism and the paradox of private property 241
Jennifer Nedelsky

9 From liberal constitutionalism to corporate pluralism
The conflict over the enabling acts in Norway after the Second World War and the subsequent constitutional development
Francis Sejersted

10 Arguments for constitutional choice: reflections on the transition to socialism 303
Jon Elster

11 Constitutions and democracies: an epilogue 327
Cass R. Sunstein

Index 357

Archard, D. (1995), Review of Constitutionalism and Democracy, Radical Philosophy Iss. 71:39-41
Richards, D. A. J. (1995), Review of Constitutionalism and Democracy, Ethics 105 (4): 945-947
Vaughn, Karen I. (1990), Review of Constitutionalism and Democracy, Public Choice 67 (1):96-99

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Alternatives to Capitalism

The essays in this provocative new collection survey and assess institutional arrangements that could be alternatives to capitalism as it exists today. The point of departure agreed upon by the contributors is that on the one hand, capitalism produces unemployment, a lack of autonomy in the workplace, and massive income inequalities; while on the other, central socialist planning is characterized by underemployment, inefficiency, and bureaucracy. In Part I of the volume, various alternatives are proposed: profit-sharing systems, capitalism combined with some central planning, worker-owned firms in a market economy; also suggested is the introduction of the elements of market economy into a centrally planned economy, as has occurred recently in Hungary. Part II provides a theoretical analysis and assessment of these systems.

This book is the first to cover such a wide range of subjects as central planning, market socialism, and profit sharing. It will prove indispensable to political and social scientists, and economists


Notes on the contributors page vii

1 Introduction 1
Jon Elster and Karl Ove Moene

1.1 Criteria of evaluation 4
- 1.1.1 Information and trust 4
- 1.1.2 Efficiency 5
- 1.1.3 Alienation and self-realisation 7
- 1.1.4 Externalities 9
- 1.1.5 Conflicting preferences 10
- 1.1.6 Some broader issues 11

1.2 The methodology of institutional comparison 12
- 1.2.1 Local versus global effects 15
- 1.2.2 Partial versus net effects 18
- 1.2.3 Short term versus long term effects 19
- 1.2.4 Transitional versus steady-state effects 20

1.3 Properties and problems of market socialism 21
- 1.3.1 What is a cooperative? 22
- 1.3.2 What is market socialism 26
- 1.3.3 Work incentives and productivity 27
- 1.3.4 Financial structure 31
- 1.3.5 Cooperatives and labour unions 33

Part I Alternatives

2 Internal subcontracting in Hungarian enterprises 39
György Sziráczki

2.1 The development and spread of sub-contracting 40
2.2 Work partnerships as a new structure of incentives 45
2.3 Subcontracting in comparative perspective 48
2.4 Bargaining between work partnerships and enterprises 51
2.5 Unions and VGMs 55
2.6 Final remarks 57

3 Profit-sharing capitalism 61
Martin L. Weitzman

4 The unclearing market 71
Tamás Bauer

4.1 The market structure 72
- 4.1.1 The state and cooperative sectors 72
- 4.1.2 The private and the semi-private sectors 73

4.2 Labour market and housing market 77
- 4.2.1 Housing, cars and recreation 77
- 4.2.2 Two prices of labour 79

4.3 Some comments on a missing market 81

5 Strong unions or worker control? 83
Karl Ove Moene

5.1 Worker control defined 84
5.2 Hiring and firing in the short run 85
5.3 Long-run considerations: self-management versus bargaining 88
- 5.3.1 Union preferences 89
- 5.3.2 The threat points of capital owners 90
- 5.3.3 Investment with short-term wage contracting 90
- 5.3.4 Union strength and bargaining power 92
5.4 Concluding remarks 93
Appendix: the short-run behaviour of the coop 94

6 The role of central planning under capitalism and market socialism 98
Alec Nove

6.1 Market, public provision and planning at 'micro' levels 100
6.2 The 'macro' level 104
6.3 Some conclusions 108

Part II Criteria
7 Are freedom and equality compatible? 113
G. A. Cohen

7.1 Self-ownership, world ownership and equality 113
7.2 Nozick on appropriation 117
7.3 Two concepts of liberty 121

8 Self-realisation in work and politics: the Marxist conception of the good life 127
Jon Elster

8.1 The concept of self-realization 129
- 8.1.1 Some examples and a preliminary classification 129
- 8.1.2 Towards a definition 131
- 8.1.3 Why value self-realization? 133
- 8.1.4 Resistance to self-realisation 138

8.2 Work as a vehicle for self-realisation 141
- 8.2.1 The 'disutility of work' 141
- 8.2.2 The scope for self-realisation in industry 143

8.3 Politics as a vehicle for self-realisation 147
- 8.3.1 Private politics 147
- 8.3.2 A controversy over ancient politics 148

8.4 Self-realisation and community 150
- 8.4.1 Self-realisation for others 151
- 8.4.2 Self-realisation with others 152

8.5 Institutions, desires and opportunities 154
- 8.5.1 Adaptive preferences 155
- 8.5.2 Democracy and size 155
- 8.5.3 Market or planning? 156
- 8.5.4 How to get from here to there (and remain there)157

9 Public ownership and private property externalities 159
John E. Roemer

9.1 Why public ownership 159
9.2 Publis ownership of transferable assets 163
9.3 Public ownership of talents 169
9.4 Summary 177

Shearmur, Jeremy (1992), Review of Alternatives to Capitalism, Philosophy of the Social Sciences 22 (3):381-384

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Interpersonal comparisons of well-being

In this volume, a diverse group of economists, philosophers, political scientists, and psychologists addresses the problems, principles, and practices involved in comparing the well- being of different individuals. A series of questions lies at the heart of this investigation: What is the relevant concept of well-being for the purposes of comparison? How could the comparisons be carried out for policy purposes? How are such comparsons made now? How do the difficulties involved in these comparisons affect the status of utilitarian theories? This collection constitutes the most advanced and comprehensive treatment of one of the cardinal issues in social theory.


List of contributors page vii
Acknowledgments ix

Introduction 1
Jon Elster and John E. Roemer

1 The moral basis of interpersonal comparisons 17
Thomas M. Scanlon

2 Against the taste model 45
James Griffin

3 Utilitarian metaphysics? 70
John Broome

4 Local justice and interpersonal comparisons 98
Jon Elster

5 Notes on the psychology of utility 127
Daniel Kahneman and Carol Varey

6 Adult-equivalence scales, interpersonal comparisons of
well-being, and applied welfare economics
Charles Blackorby and David Donaldson

7 Interpersonal comparisons of utility: Why and how they are and should be made 200
Peter J. Hammond

8 A reconsideration of the Harsanyi-Sen debate on utilitarianism 255
John A. Weymark

9 Deducing interpersonal comparisons from local expertise 321
Ignacio Ortuńo-Ortin and John E. Roemer

10 Subjective interpersonal comparison 337
Aanund Hylland

11 Utilitarian fundamentalism and limited information 371
C. d'Aspremont and L. A. Gérard-Varet

Index 387

Lyon, P. (1992), Review of I.C.W-B, American Political Science Review 86 (4):1041-1043
Osberg, Lars (1992), Review of I.C.W-B, Journal of Economic Literature 30 (4):2143-2143
Sugden, Robert (1992), Review of I.C.W-B, Economic Journal 102 (414):1289-1290

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Choice over Time


Contributors vii
Preface ix

PART ONE - Historical Overview

1. The Fall and Rise of Psychological Explanations in the Economics of Intertemporal Choice 3
George Loewenstein

2. Intertemporal Choice and Political Thought 35
Jon Elster

PART TWO - General Perspectives

3. Hyperbolic Discounting 57
George Ainslie and Nick Haslam

4. Irrationality, Impulsiveness, and Selfishness as Discount Reversal Effects 93
Howard Rachlin and Andres Raineri

5. Anomalies in Intertemporal Choice: Evidence and an Interpretation 119
George Loewenstein and Drazen Prelec

6. Delay of Gratification in Children 147
Walter Mischel, Yuichi Shoda, and Monica L. Rodriguez

PART THREE - Self-Control

7. Self-Command: A New Discipline 167
T. C. Schelling

8. Self-Control 177
George Ainslie and Nick Haslam

PART FOUR - Internalities

9. Utility from Memory and Anticipation 213
Jon Elster and George Loewenstein

10. Melioration 235
Richard J. Herrnstein and Drazen Prelec

11. The Role of Moral Sentiments in the Theory of Intertemporal Choice 265
Robert H. Frank

PART FIVE - Applications and Extensions

12. Mental Accounting, Saving, and Self-Control 287
Hersh M. Shefrin and Richard H. Thaler

13. A Theory of Addiction 331
Richard J. Herrnstein and Drazen Prelec

14. Rational Addiction and the Effect of Price on Consumption 361
Gary S. Becker, Michael Grossman, and Kevin M. Murphy

15. Frames of Reference and the Intertemporal Wage Profile 371
Robert H. Frank

Index 383

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Local Justice in America

Notions of justice and fairness are central to the American belief that the pursuit of a healthy and productive life is the right of all citizens. Yet in the real world there are seldom sufficient resources to meet the needs of everyone, and institutions are routinely forced to make difficult decisions regarding who will be favored and who will not. Local Justice in America is an insightful look into how selections are made in four critical areas: college admissions, kidney transplants, employee layoffs, and legalized immigration. This volume's case studies survey the history and modern rationale behind seemingly enigmatic allocation systems, chronicling the political and ethical debates, occasional scandals, and judicial battles that have shaped them. Though these selection processes differ significantly, each reflects a bitter struggle between opposing--and equally intense--principles of local justice.

In framing chapters, editor Jon Elster draws upon these studies to speculate on the unique nature of the American value system. Arguing that race matters deeply in all considerations of local justice, he discusses how our society's assessment of neediness balances on the often uneasy compromises between the desire to reward deserving individuals and the call to strengthen opportunities for disadvantaged groups. Well informed and stimulating, Local Justice in America speaks directly to policy debates in the fields of health, education, work, and immigration, and makes an important contribution to our understanding of the fundamental social issues that affect our daily welfare.


Contributors vii
Preface and Acknowledgments ix

1. Introduction: The idea of local justice 1
Jon Elster

2. The allocation of college admissions 25
Patricia Conley

3. Scarce medical resources: Hemodialysis and Kidney transplantation 81
J. Michael Dennis

4. Layoffs: Principles and practices 153
Stuart Romm

5. U.S. immigration policy and local justice 227
Gerry Mackie

6. Conclusion: Local justice and American values 291
Jon Elster

Index 317

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The Ethics of Medical Choice


1. The ethics of medical choice 1
Jon Elster

2. Centralisation and discretionary power: kidney transplantation in France 23
Nicolas Herpin and Florence Paterson

3. Obstacles to sperm donation in France 48
J. Michael Dennis

4. Surgeon under surveillance: dialysis and transplantation in the USA 70
J. Michael Dennis

5. The colour of genes in the USA 84
J. Michael Dennis

6. Donations from the living: are the French and Norwegians altruistic? 100
Hilde Lorenzen and Florence Paterson

7. Three countries, three systems 116
J. Michael Dennis

Bibliography 141

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