I hope that this book contributes to a better understanding of the interconnection between morality and economic behavior. It is intended for those whose interests lie in legal theory, economic theory, moral philosophy, and political theory and for those who are concerned with ascertaining a moral basis for pluralistic, private property democracies. I also hope that the theoretical results of this work will prove useful to policy analysts, judges, legislators, and those involved in developing constitutions for emerging democracies.

Several perplexities, hunches, and heuristically fruitful concepts served to focus my interest in the moral conditions of economic efficiency. I first became interested in this issue while reading Adam Smith's Wealth of Nations and Theory of Moral Sentiments. It seemed to me then that there was a closer connection between morality and market behavior in Smith's writings than was made explicit. I am sympathetic to and inspired by what I believe is the intent of Jules Coleman's Risks and Wrongs and of David Gauthier's Morals by Agreement. A pluralistic democracy having a private property economy needs some common morality that respects a pluralism of moral traditions, is capable of guiding the common life of all, and underwrites its legal system. But, at the time, the relationship between morality and markets seemed to need greater clarification before competing traditions could come to any “agreement” or “rational choice contract.” Since an overarching issue is social behavior, it seemed that some account of social behavior must be thrown into the mix as well.