David Ellerman

After Marx, dissenting economics almost always used 'the labour theory' as a theory of value. This paper develops a modern treatment of the alternative labour theory of property that is essentially the property theoretic application of the juridical principle of responsibility: impute legal responsibility in accordance with who was in fact responsible. To understand descriptively how assets and liabilities are appropriated in normal production, a 'fundamental myth' needs to be cleared away, and then the market mechanism of appropriation can be understood. On the normative side, neoclassical theory represents marginal productivity theory as showing that (a metaphorical version of) the imputation principle is satisfied ('people get what they produce') in competitive enterprises. Since that shows the moral commitment of neoclassical economics to the imputation principle, the labour theory of property is presented here as the actual non-metaphorical application of the imputation principle to property appropriation. The property-theoretic analysis at the firm level shows how the neoclassical (and much heterodox) analysis in terms of 'distributive shares' wholly misframed the basic questions. Finally, the paper shows how the imputation principle (modernised labour theory of property) is systematically violated in the present wage labour system of renting persons. The paper can be seen as taking up the recent challenge posed by Donald Katzner for a dialogue between neoclassical and heterodox microeconomics.

When this book was first published in 1990, there were massive economic changes in the East and significant economic challenges to the West. This critical analysis of democratic theory discusses the principles and forces that push both socialist and capitalist economies toward a common ground of workplace democratization. This book is a comprehensive approach to the theory and practice of the "Democratic firm" – from philosophical first principles to legal theory and finally to some of the details of financial structure. The argument for economic democracy supports private property, free markets and entrepreneurship for instance, but fundamentally it replaces the employer/employee relationship with democratic membership in the firm. For students, teachers, policy makers and others interested in the application of democracy to the workplace, this book will serve as a manifesto and a standard reference on the topic

There is some consensus among orthodox category theorists that the concept of adjoint functors is the most important concept contributed to mathematics by category theory. We give a heterodox treatment of adjoints using heteromorphisms that parses an adjunction into two separate parts. Then these separate parts can be recombined in a new way to define a cognate concept, the brain functor, to abstractly model the functions of perception and action of a brain. The treatment uses relatively simple category theory and is focused on the interpretation and application of the mathematical concepts

Instead of the half-century old foundational feud between set theory and category theory, this paper argues that they are theories about two different complementary types of universals. The set-theoretic antinomies forced naïve set theory to be reformulated using some iterative notion of a set so that a set would always have higher type or rank than its members. Then the universal u_{F}={x|F(x)} for a property F() could never be self-predicative in the sense of u_{F}∈u_{F}. But the mathematical theory of categories, dating from the mid-twentieth century, includes a theory of always-self-predicative universals--which can be seen as forming the "other bookend" to the never-self-predicative universals of set theory. The self-predicative universals of category theory show that the problem in the antinomies was not self-predication per se, but negated self-predication. They also provide a model (in the Platonic Heaven of mathematics) for the self-predicative strand of Plato's Theory of Forms as well as for the idea of a "concrete universal" in Hegel and similar ideas of paradigmatic exemplars in ordinary thought.

Double-entry bookkeeping (DEB) implicitly uses a specific mathematical construction, the group of differences using pairs of unsigned numbers ("T-accounts"). That construction was only formulated abstractly in mathematics in the 19th century—even though DEB had been used in the business world for over five centuries. Yet the connection between DEB and the group of differences (here called the "Pacioli group") is still largely unknown both in mathematics and accounting. The precise mathematical treatment of DEB allows clarity on certain conceptual questions and it immediately yields the generalization of the double-entry method to multi-dimensional vectors typically representing the different types of property involved in an enterprise or household.

Classical logic is usually interpreted as the logic of propositions. But from Boole's original development up to modern categorical logic, there has always been the alternative interpretation of classical logic as the logic of subsets of any given (nonempty) universe set. Partitions on a universe set are dual to subsets of a universe set in the sense of the reverse-the-arrows category-theoretic duality--which is reflected in the duality between quotient objects and subobjects throughout algebra. Hence the idea arises of a dual logic of partitions. That dual logic is described here. Partition logic is at the same mathematical level as subset logic since models for both are constructed from (partitions on or subsets of) arbitrary unstructured sets with no ordering relations, compatibility or accessibility relations, or topologies on the sets. Just as Boole developed logical finite probability theory as a quantitative treatment of subset logic, applying the analogous mathematical steps to partition logic yields a logical notion of entropy so that information theory can be refounded on partition logic. But the biggest application is that when partition logic and the accompanying logical information theory are "lifted" to complex vector spaces, then the mathematical framework of quantum mechanics is obtained. Partition logic models indefiniteness (i.e., numerical attributes on a set become more definite as the inverse-image partition becomes more refined) while subset logic models the definiteness of classical physics (an entity either definitely has a property or definitely does not). Hence partition logic provides the backstory so the old idea of "objective indefiniteness" in QM can be fleshed out to a full interpretation of quantum mechanics.

In her recent book Private Government, Elizabeth Anderson makes a powerful but pragmatic case against the abuses experienced by employees in conventional corporations. The purpose of this review-essay is to contrast Anderson’s pragmatic critique of many abuses in the employment relation with a principled critique of the employment relationship itself. This principled critique is based on the theory of inalienable rights that descends from the Reformation doctrine of the inalienability of conscience down through the Enlightenment in the abolitionist, democratic, and feminist movements. That theory was the basis for the abolition of the voluntary slavery or self-sale contract, the voluntary non-democratic constitution (pactum subjectionis), and the voluntary coverture marriage contract in today’s democratic countries. When understood in modern terms, that same theory applies as well against the voluntary self-rental or employment contract that is the basis for our current economic system.

Today it would be considered "bad Platonic metaphysics" to think that among all the concrete instances of a property there could be a universal instance so that all instances had the property by virtue of participating in that concrete universal. Yet there is a mathematical theory, category theory, dating from the mid-20th century that shows how to precisely model concrete universals within the "Platonic Heaven" of mathematics. This paper, written for the philosophical logician, develops this category-theoretic treatment of concrete universals along with a new concept to abstractly model the functions of a brain.

The logical basis for information theory is the newly developed logic of partitions that is dual to the usual Boolean logic of subsets. The key concept is a "distinction" of a partition, an ordered pair of elements in distinct blocks of the partition. The logical concept of entropy based on partition logic is the normalized counting measure of the set of distinctions of a partition on a finite set--just as the usual logical notion of probability based on the Boolean logic of subsets is the normalized counting measure of the subsets (events). Thus logical entropy is a measure on the set of ordered pairs, and all the compound notions of entropy (join entropy, conditional entropy, and mutual information) arise in the usual way from the measure (e.g., the inclusion-exclusion principle)--just like the corresponding notions of probability. The usual Shannon entropy of a partition is developed by replacing the normalized count of distinctions (dits) by the average number of binary partitions (bits) necessary to make all the distinctions of the partition.

In the 1990s, a debate raged across the whole postsocialist world as well as in Western development agencies such as the World Bank about the best approach to the transition from various forms of socialism or communism to a market economy and political democracy. One of the most hotly contested topics was the question of the workplace being organized based on workplace democracy (e.g., various forms of worker ownership) or based on the conventional employer-employee relationship. Well before 1989, many of the socialist countries had started experimenting with various forms of "self-management" operating in more of a market setting, Yugoslavia being the most developed example. Thus one "path to the market" would ..

Liberal-contractarian philosophies of justice see the unjust systems of slavery and autocracy in the past as being based on coercion—whereas the social order in modern democratic market societies is based on consent and contract. However, the ‘best’ case for slavery and autocracy in the past were consent-based contractarian arguments. Hence, our first task is to recover those ‘forgotten’ apologia for slavery and autocracy. To counter those consent-based arguments, the historical anti-slavery and democratic movements developed a theory of inalienable rights. Our second task is to recover that theory and to consider several other applications of the theory. Finally, the liberal theories of justice expounded by John Rawls and by Robert Nozick are briefly examined from this perspective.

Recent developments in pure mathematics and in mathematical logic have uncovered a fundamental duality between "existence" and "information." In logic, the duality is between the Boolean logic of subsets and the logic of quotient sets, equivalence relations, or partitions. The analogue to an element of a subset is the notion of a distinction of a partition, and that leads to a whole stream of dualities or analogies--including the development of new logical foundations for information theory parallel to Boole's development of logical finite probability theory. After outlining these dual concepts in mathematical terms, we turn to a more metaphysical speculation about two dual notions of reality, a fully definite notion using Boolean logic and appropriate for classical physics, and the other objectively indefinite notion using partition logic which turns out to be appropriate for quantum mechanics. The existence-information duality is used to intuitively illustrate these two dual notions of reality. The elucidation of the objectively indefinite notion of reality leads to the "killer application" of the existence-information duality, namely the interpretation of quantum mechanics.

Evolutionary economics often focuses on the comparison between economic competition and the process of natural selection to select the fitter members of a given population. But that neglects the other "half" of an evolutionary process, the mechanism for the generation of new possibilities that is key to dynamic efficiency. My topic is the process of parallel experimentation which I take to be a process of multiple experiments running concurrently with some form of common goal, with some semi-isolation between the experiments, with benchmarking comparisons made between the experiments, and with the "migration" of discoveries between experiments wherever possible to ratchet up the performance of the group. The thesis is that parallel experimentation is a fundamental dynamic efficiency scheme to enhance and accelerate variation, innovation, and learning in contexts of genuine uncertainty or known ignorance. Within evolutionary biology, this type of parallel experimentation scheme was developed in Sewall Wright's shifting balance theory of evolution. It addressed the rather neglected topic of how a population on a low fitness peak might eventually be able to go "downhill" against selective pressures, traverse a valley of low fitness, and then ascend a higher fitness peak. The theme of parallel experimentation is used to recast and pull together dynamic and pluralistic theories in economics, political theory, philosophy of science, and social learning.

There is a fault line running through classical liberalism as to whether or not democratic self-governance is a necessary part of a liberal social order. The democratic and non-democratic strains of classical liberalism are both present today—particularly in America. Many contemporary libertarians and neo-Austrian economists represent the non-democratic strain in their promotion of non-democratic sovereign city-states (startup cities or charter cities). We will take the late James M. Buchanan as a representative of the democratic strain of classical liberalism. Since the fundamental norm of classical liberalism is consent, we must start with the intellectual history of the voluntary slavery contract, the coverture marriage contract, and the voluntary non-democratic constitution (or pactum subjectionis). Next we recover the theory of inalienable rights that descends from the Reformation doctrine of the inalienability of conscience through the Enlightenment (e.g., Spinoza and Hutcheson) in the abolitionist and democratic movements. Consent-based governments divide into those based on the subjects' alienation of power to a sovereign and those based on the citizens' delegation of power to representatives. Inalienable rights theory rules out that alienation in favor of delegation, so the citizens remain the ultimate principals and the form of government is democratic. Thus the argument concludes in agreement with Buchanan that the classical liberal endorsement of sovereign individuals acting in the marketplace generalizes to the joint action of individuals as the principals in their own organizations.

Saunders Mac Lane famously remarked that "Bourbaki just missed" formulating adjoints in a 1948 appendix (written no doubt by Pierre Samuel) to an early draft of Algebre--which then had to wait until Daniel Kan's 1958 paper on adjoint functors. But Mac Lane was using the orthodox treatment of adjoints that only contemplates the object-to-object morphisms within a category, i.e., homomorphisms. When Samuel's treatment is reconsidered in view of the treatment of adjoints using heteromorphisms or hets (object-to-object morphisms between objects in different categories), then he, in effect, isolated the concept of a left representation solving a universal mapping problem. When dualized to obtain the concept of a right representation, the two halves only need to be united to obtain an adjunction. Thus Samuel was only a now-simple dualization away for formulating adjoints in 1948. Apparently, Bodo Pareigis' 1970 text was the first and perhaps only text to give the heterodox "new characterization" (i.e., heteromorphic treatment) of adjoints. Orthodox category theory uses various relatively artificial devices to avoid formally recognizing hets--even though hets are routinely used by the working mathematician. Finally we consider a "philosophical" question as to whether the most important concept in category theory is the notion of an adjunction or the notion of a representation giving a universal mapping property (where adjunctions arise as the special case of a bi-representation of dual universal mapping problems).

Since the pioneering work of Birkhoff and von Neumann, quantum logic has been interpreted as the logic of (closed) subspaces of a Hilbert space. There is a progression from the usual Boolean logic of subsets to the "quantum logic" of subspaces of a general vector space--which is then specialized to the closed subspaces of a Hilbert space. But there is a "dual" progression. The notion of a partition (or quotient set or equivalence relation) is dual (in a category-theoretic sense) to the notion of a subset. Hence the Boolean logic of subsets has a dual logic of partitions. Then the dual progression is from that logic of partitions to the quantum logic of direct-sum decompositions (i.e., the vector space version of a set partition) of a general vector space--which can then be specialized to the direct-sum decompositions of a Hilbert space. This allows the logic to express measurement by any self-adjoint operators rather than just the projection operators associated with subspaces. In this introductory paper, the focus is on the quantum logic of direct-sum decompositions of a finite-dimensional vector space (including such a Hilbert space). The primary special case examined is finite vector spaces over ℤ₂ where the pedagogical model of quantum mechanics over sets (QM/Sets) is formulated. In the Appendix, the combinatorics of direct-sum decompositions of finite vector spaces over GF(q) is analyzed with computations for the case of QM/Sets where q=2.

Categorical logic has shown that modern logic is essentially the logic of subsets (or "subobjects"). Partitions are dual to subsets so there is a dual logic of partitions where a "distinction" [an ordered pair of distinct elements (u,u′) from the universe U ] is dual to an "element". An element being in a subset is analogous to a partition π on U making a distinction, i.e., if u and u′ were in different blocks of π. Subset logic leads to finite probability theory by taking the (Laplacian) probability as the normalized size of each subset-event of a finite universe. The analogous step in the logic of partitions is to assign to a partition the number of distinctions made by a partition normalized by the total number of ordered pairs |U|² from the finite universe. That yields a notion of "logical entropy" for partitions and a "logical information theory." The logical theory directly counts the (normalized) number of distinctions in a partition while Shannon's theory gives the average number of binary partitions needed to make those same distinctions. Thus the logical theory is seen as providing a conceptual underpinning for Shannon's theory based on the logical notion of "distinctions."

Since its formal definition over sixty years ago, category theory has been increasingly recognized as having a foundational role in mathematics. It provides the conceptual lens to isolate and characterize the structures with importance and universality in mathematics. The notion of an adjunction (a pair of adjoint functors) has moved to center-stage as the principal lens. The central feature of an adjunction is what might be called “determination through universals” based on universal mapping properties. A recently developed “heteromorphic” theory about adjoints suggests a conceptual structure, albeit abstract and atemporal, for how new relatively autonomous behavior can emerge within a system obeying certain laws. The focus here is on applications in the life sciences (e.g., selectionist mechanisms) and human sciences (e.g., the generative grammar view of language).

In this chapter I seek to provide a theoretical defense of workplace democracy that is independent from and outside the lineage of Marxist and communist theory. Common to the council movements, anarcho- syndicalism and many other forms of libertarian socialism was the idea “that workers’ self- management was central.” Yet the idea of workers’ control has not been subject to the same theoretical development as Marx’s theory, not to mention capitalist economic theory. This chapter aims to contribute at a theoretical level by providing a justification and defense of self- managed workplaces that is independent of the particular historical tradition of the council movements. There is a clear and definitive case for workplace democracy based on first principles that descends to modern times through the Reformation and Enlightenment in the abolitionist, democratic and feminist movements. By the twentieth century, the arguments had been scattered and lost  – like the bones of some ancient beast scattered in a desert  – partly due to misconceptions, mental blocks and misinterpretations embodied in Marxism, liberalism and economic theory. When one has worked through some of these intellectual roadblocks, then one may be better able to reassemble the case for workplace democracy from well- known first principles developed in the abolitionist, democratic and feminist movements.

Classical liberalism is skeptical about governmental organizations "doing good" for people. Instead governments should create the conditions so that people individually (Adam Smith) and in associations (Tocqueville) are empowered to do good for themselves. The market implications of classical liberalism are well-known, but the implications for organizations are controversial. We will take James Buchanan as our guide (with assists from Mill and Dewey). Unpacking the implications of classical liberalism for the "science of associations" (Tocqueville) requires a tour through the intellectual history of the voluntary slavery contract and the voluntary non-democratic constitution. The argument concludes that the classical liberal endorsement of sovereign individuals acting in the marketplace generalizes to the joint action of individuals as the principals in their own organizations and associations.

John Tomasi's new book, Free Market Fairness, has been well-received as "one of the very best philosophical treatments of libertarian thought, ever" and as a "long and friendly conversation between Friedrich Hayek and John Rawls—a conversation which, astonishingly, reaches agreement". The book does present an authoritative state-of-the-debate across the spectrum from right-libertarianism on the one side to high liberalism on the other side. My point is not to question where Tomasi comes down with his own version of "market democracy" as a remix of Hayek and Rawls. My point is to use his sympathetic restatements of views across the liberal spectrum to show the basic misframings and common misunderstandings that cut across the liberal-libertarian viewpoints surveyed in the book. As usual, the heart of the debate is not in the answers to carefully framed questions, but in the framing itself.

Liberal thought (in the sense of classical liberalism) is based on the juxtaposition of consent to coercion. Autocracy and slavery were seen as based on coercion whereas today's political democracy and economic 'employment system' are based on consent to voluntary contracts. This paper retrieves an almost forgotten dark side of contractarian thought that based autocracy and slavery on explicit or implicit voluntary contracts. To answer these 'best case' arguments for slavery and autocracy, the democratic and abolitionist movements forged arguments not simply in favour of consent, but arguments that voluntary contracts to legally alienate aspects of personhood were invalid 'even with consent' – which made the underlying rights inherently inalienable. Once understood, those arguments have the perhaps 'unintended consequence' of making the neo-abolitionist case for ruling out today's self-rental contract, the employer-employee contract. The paper has to also retrieve these inalienable rights arguments since they have been largely lost on the Left, not to mention in liberal thought.

The notion of a partition on a set is mathematically dual to the notion of a subset of a set, so there is a logic of partitions dual to Boole's logic of subsets (Boolean logic is usually mis-specified as "propositional" logic). The notion of an element of a subset has as its dual the notion of a distinction of a partition (a pair of elements in different blocks). Boole developed finite logical probability as the normalized counting measure on elements of subsets so there is a dual concept of logical entropy which is the normalized counting measure on distinctions of partitions. Thus the logical notion of information is a measure of distinctions. Classical logical entropy naturally extends to the notion of quantum logical entropy which provides a more natural and informative alternative to the usual Von Neumann entropy in quantum information theory. The quantum logical entropy of a post-measurement density matrix has the simple interpretation as the probability that two independent measurements of the same state using the same observable will have different results. The main result of the paper is that the increase in quantum logical entropy due to a projective measurement of a pure state is the sum of the absolute squares of the off-diagonal entries ("coherences") of the pure state density matrix that are zeroed ("decohered") by the measurement, i.e., the measure of the distinctions ("decoherences") created by the measurement.

Following the development of the selectionist theory of the immune system, there was an attempt to characterize many biological mechanisms as being "selectionist" as juxtaposed to "instructionist." But this broad definition would group Darwinian evolution, the immune system, embryonic development, and Chomsky's language-acquisition mechanism as all being "selectionist." Yet Chomsky's mechanism (and embryonic development) are significantly different from the selectionist mechanisms of biological evolution or the immune system. Surprisingly, there is a very abstract way using two dual mathematical logics to make the distinction between genuinely selectionist mechanisms and what are better called "generative" mechanisms. This note outlines that distinction.

A theory of property needs to give an account of the whole life-cycle of a property right: how it is initiated, transferred, and terminated. Economics has focused on the transfers in the market and has almost completely neglected the question of the initiation and termination of property in normal production and consumption (not in some original state or in the transition from common to private property). The institutional mechanism for the normal initiation and termination of property is an invisible-hand function of the market, the market mechanism of appropriation. Does this mechanism satisfy an appropriate normative principle? The standard normative juridical principle is to assign or impute legal responsibility according to de facto responsibility. It is given a historical tag of being "Lockean" but the basis is contemporary jurisprudence, not historical exegesis. Then the fundamental theorem of the property mechanism is proven which shows that if "Hume's conditions" (no transfers without consent and all contracts fulfilled) are satisfied, then the market automatically satisfies the Lockean responsibility principle, i.e., "Hume implies Locke." As a major application, the results in their contrapositive form, "Not Locke implies Not Hume," are applied to a market economy based on the employment contract. It is shown the production based on the employment contract violates the Lockean principle (all who work in an employment enterprise are de facto responsible for the positive and negative results) and thus Hume's conditions must also be violated in the marketplace (de facto responsible human action cannot be transferred from one person to another—as is readily recognized when and employer and employee together commit a crime).

Modern categorical logic as well as the Kripke and topological models of intuitionistic logic suggest that the interpretation of ordinary “propositional” logic should in general be the logic of subsets of a given universe set. Partitions on a set are dual to subsets of a set in the sense of the category-theoretic duality of epimorphisms and monomorphisms—which is reflected in the duality between quotient objects and subobjects throughout algebra. If “propositional” logic is thus seen as the logic of subsets of a universe set, then the question naturally arises of a dual logic of partitions on a universe set. This paper is an introduction to that logic of partitions dual to classical subset logic. The paper goes from basic concepts up through the correctness and completeness theorems for a tableau system of partition logic.

Much of the recent discussion in progressive circles [e.g., Stiglitz; Galbraith; Piketty] has focused the obscene mal-distribution of wealth and income as if that was "the" problem in our economic system. And the proposed redistributive reforms have all stuck to that framing of the question. To put the question in historical perspective, one might note that there was a similar, if not more extreme, mal-distribution of wealth, income, and political power in the Antebellum system of slavery. Yet, it should be obvious to modern eyes that redistributions in favor of the slaves, while leaving the institution of owning workers intact, would not address the root of the problem. The system of slavery was eventually abolished in favor of the system we have today which differs in two important respects: the workers are only rented, hired, or employed ; and the rental relationship between employer and employee is voluntary. Today, the root of the problem is the whole institution for the voluntary renting of human beings, the employment system itself, not the terms of the contract or the accumulated consequences in the form of the mal-distribution of income and wealth.

In finite probability theory, events are subsets S⊆U of the outcome set. Subsets can be represented by 1-dimensional column vectors. By extending the representation of events to two dimensional matrices, we can introduce "superposition events." Probabilities are introduced for classical events, superposition events, and their mixtures by using density matrices. Then probabilities for experiments or `measurements' of all these events can be determined in a manner exactly like in quantum mechanics (QM) using density matrices. Moreover the transformation of the density matrices induced by the experiments or `measurements' is the Lüders mixture operation as in QM. And finally by moving the machinery into the n-dimensional vector space over ℤ₂, different basis sets become different outcome sets. That `non-commutative' extension of finite probability theory yields the pedagogical model of quantum mechanics over ℤ₂ that can model many characteristic non-classical results of QM.