The Relevance of Procedural Utility for Economics

This paper aims at showing the relevance of procedural utility for economics: people do not only care about outcomes, as usually assumed in economics, they also value the processes and conditions leading to outcomes. The psychological foundations of procedural utility are outlined and it is discussed how the concept differs from other related approaches in economics, like outcome utility, outcome fairness or intentions. Institutions at the level of society and fair procedures are shown to be sources of procedural utility, and novel empirical evidence on the role of procedural utility in important areas of the economy, polity and society is presented

Towards a constitutional theory of corporate governance

Matthias Benz and Bruno S. Frey critically examines the theoretical perspective that the corporations should aspire for an uniformly optimal structure of governance structure in "Towards a Constitutional Theory of Corporate Governance." They make a comparative study of the pros & cons of limited constitutional rights to shareholders under the US corporate laws with the extensive constitutional rights under the Swiss corporate laws. They advocate the democratic approach under Swiss law as a better alternative to direct approach of the US that allows shareholders to set up corporate governance according to their preferences