The Subjectivist-Contrarian Position

Abstract

James Buchanan endorses a radical version of subjectivism at several points in his body of work. I distinguish two distinct criteria for subjectivism in Buchanan. First, Buchanan rejects the realism of preferences, arguing that they are only an analytical tool for understanding choice. Second, Buchanan adopts an Austrian perspective on the importance of creativity inspired by Kirzner and Shackle. In addition to reconstructing Buchanan’s views on these topics, I examine how they relate to more recent work in political philosophy, behavioral economics, and psychology in order to ascertain what value Buchanan’s radical approach might still hold.

Keywords: behavioral economics, deliberation, entrepreneurship, methodology, public reason, subjectivism

JEL Classification: B25, B31, B4, D8