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Societies for the History of Economics

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From:
Fred Foldvary <[log in to unmask]>
Reply To:
Societies for the History of Economics <[log in to unmask]>
Date:
Sun, 11 Oct 2009 10:16:50 -0400
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 > Would a workplace where people have to submit to the
 > authority of a boss constitute voluntary behavior?
 > Michael Perelman


As James Buchanan and others have written in the rubric of 
constitutional economics, there are two levels of decision, the 
constitutional and the operational.

For example, getting married is a constitutional choice.  One knows 
that when married, one will have to compromise, and normally will 
have to go along with decisions one disagrees with.

The voluntariness of action is at the constitutional level.  One then 
agrees to rules which in particular operations may be disagreeable.

Thus when one enters into an employment contract, that is a voluntary 
constitutional choice.  One knows that operationally one will be 
under the authority of a boos, not always pleasantly, but that is the 
package one chose.

In a free society, constitutional choices and contracts have an exit 
option.  For example, one may get a divorce from marriage.  Thus 
perpetual slavery is not voluntary, since one may not exit even if 
one voluntarily chose to become a slave.

Fred Foldvary

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