The Evolution of Social Ethics: Using Economic History to Understand Economic Ethics

In the development of Roman Catholic social thought from the teachings of the scholastics to the modern social encyclicals, changes in normative economics reflect the transformation of an economic terrain from its feudal roots to the modern industrial economy. The preeminence accorded by the modern market to the allocative over the distributive function of price broke the convenient convergence of commutative and distributive justice in scholastic just price theory. Furthermore, the loss of custom, law, and usage in defining the boundaries of economic behavior led to a depersonalization of economic relationships that had previously provided effective informal means of protecting individual well-being. Hence, recent economic ethics has had to look for nonprice, nonmarket mechanisms for distributive justice. This is reflected, for example, in the shift in attitude from the medieval antipathy toward unions to the contemporary defense of organized labor on moral grounds.     

How do we process prices? Electrophysiological evidence of componential analysis

The aim of this study was to evaluate if the processing of prices (e.g., 8 euro) involves separate analysis of the digit (8) and the monetary category (euro). Event-related potentials (ERPs) were recorded when participants performed a price comparison task in which a pair of prices was presented and they selected the one with higher monetary value. There were compatible comparisons where the digit and the monetary category of one price were higher than those of the other price (e.g., 7 euro – 4 cent, 7 > 4 and euro > cent), and incompatible comparisons where the number of one price was larger but the monetary category smaller than those of the other price (e.g., 4 euro – 7 cent, 4 < 7 but euro > cent). Compatibility effect modulated ERPs in the 350–450 ms time window, with more negative amplitudes in incompatible trials relative to compatible trials. This pattern of results suggests that prices were processed in a componential manner, challenging the evidences of the holistic model. The results of this study agree with the general model framework for multi-symbol number comparison: The constituents of a multi-symbol magnitude are processed and compared to each other separately in a componential manner.