Moral Trade*Toby OrdIf people have different resources, tastes, or needs, they may be able to exchange
goods or services such that they each feel they have been made better off. This istrade. If people have different moral views, then there is another type of tradethat is possible: they can exchange goods or services such that both parties feelthat the world is a better place or that their moral obligations are better satisfied.
We can call this moral trade. I introduce the idea of moral trade and explore several important theoretical and practical implications.

INTRODUCTION
Our world contains a great diversity of moral views. There are utilitarians,
Kantians, and virtue ethicists. There are Hindus, Buddhists, Christians,
Muslims, and Jews. There are some who believe there is an unalienable
moral right to have an abortion, others who hold it to be the moral
equivalent of murder; some who believe eating meat is the moral equivalent of murder, others who hold it to be completely innocuous; some
who believe there is a moral obligation to share society’s wealth, others who
hold that each person has a right to keep all the fruits of their labor.
People with different moral views often find themselves in antagonistic relationships. They might find cause for a local alliance if theirviews agree on a salient issue, such as a utilitarian and a Hindu joining
forces to promote vegetarianism even though they support this practice* I am very grateful for the comments given by participants of three seminars in which
an early version of this work was presented: the New England Consequentialism Workshop,
the Oxford-Copenhagen Ethics Symposium, and the Uehiro Work in Progress Seminar. I
am especially grateful for the detailed comments of Caspar Hare, Dan Wikler, Roger Crisp,
Karsten Jensen, Frej Thomsen, Owen Schaefer, Owen Cotton-Barratt, Tom Douglas, Andrew Snyder-Beattie, Dominic Wilkinson, and Daniel Dewey. This work was made possible
by a grant from the Oxford Martin School at the University of Oxford.
Ethics 126 (October 2015): 118–138© 2015 by The University of Chicago. All rights reserved. 0014-1704/2015/12601-0006$10.00

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for very different reasons.1 However, if their views differ on a salientissue, then the other side is often regarded as the enemy and battle lines
are drawn.
In this essay, I want to show a different way forward. I want to show
how people with conflicting moral views can cooperate, creating an outcome that is better according to each of their moral theories. Consider
the following vignette:
Animals and the Poor: Victoria and Paul are close friends. Victoria is avegetarian because she is aware of how much animals suffer in themodern meat industry and wants to reduce this suffering as muchas possible. Paul is deeply concerned about global poverty and donates 10 percent of his income to organizations that can effectively
improve people’s lives in poor countries. He enjoys many vegetarian dishes, but still eats meat most of the time since he finds it a bit
more convenient, and, as a contractualist, he doesn’t think that animals matter from a moral point of view. Victoria can see that Paul isprepared to make sacrifices to help others, but it frustrates her that
he isn’t prepared to be a vegetarian—especially since it would only bea small sacrifice for him. He has similar views about her lack ofserious financial support for the world’s poorest people. One day
they decide to make an arrangement. She will start to donate 1 percent of her income to fight global poverty if he agrees to become avegetarian. Either of them can end the deal at any time, releasing
them both from any commitment. They could check up on the otherperson, but as they trust each other they decide it is sufficient to ask
each other how they are keeping up once each year.
Both Victoria and Paul see this agreement as a good deal. Paul doesn’t
think that animals matter morally and wouldn’t be prepared to forgo
eating meat just to help them. However, with this arrangement his vegetarianism causes several hundred dollars per year to go to fighting poverty,
which he thinks is well worth the small sacrifice. Victoria values poverty
reduction in other countries and used to donate about $100 per year topoverty-related charities. But she cares much less about it than she cares
about animal welfare and wouldn’t be prepared to give 1 percent of her
income each year just for this cause. Through their arrangement, however,she is thrilled at being able to roughly double her impact on preventing
animal suffering at only a modest financial cost.
Victoria and Paul have just engaged in what I shall call moral trade.
Different self-regarding tastes allow for gains from trade. For example, if
1. John Rawls calls this sort of instrumental agreement a “modus vivendi,” which hecontrasts with an “overlapping consensus,” where the different parties agree to collaborate“for the right reasons.” See John Rawls, “The Idea of an Overlapping Consensus,” Oxford
Journal of Legal Studies 7 ð1987Þ: 1–25.

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two children would prefer to eat each other’s packed lunches, they cantrade them and both benefit. Similarly, if people have different moral
views, they can potentially realize gains from moral trade, making themboth think that their moral view is better satisfied if they make a trade
than if they don’t. For example, consequentialists may think that thetrade produces a better outcome, while deontologists may think that itbetter fulfils their duties or that it is a supererogatory option. Not all
moral theories will be able to gain from moral trade, but I shall argue laterthat many can.
For the moment, I’ll set aside questions about whether a moral trade
could be bad from the perspective of people who weren’t involved in the
trade and whether it could be bad from the perspective of the correct, or
best justified, moral theory ðif anyÞ. These issues, and how one might deal
with them, will be discussed in the final section. Until then, we shall justconsider the gains from moral trade from the perspective of each of themoral views that the trading parties endorse.
In the above example, Victoria and Paul had fairly compatible moral
views. Paul valued poverty reduction and was neutral about animal suffering. Victoria valued both, but valued reducing animal suffering substantially more. Moral trade is even possible on an issue when the twoparties have diametrically opposed views, so long as there is some area
where they are not diametrically opposed. Consider this second vignette:
Gun Rights and Gun Control: Rebecca and Christopher are coworkers
at a technology start-up. Rebecca is a staunch defender of the rightto bear arms and fiercely opposes gun control. Christopher doesn’t
believe that there is such a right and is deeply concerned by theharm that guns can do to society. A new bill on gun control is being
debated in Congress and has caused many heated arguments at thewater cooler. In one of these conversations, it is revealed that Rebecca is planning to donate $1,000 to a gun rights charity to fundtheir fight against this bill, while Christopher is planning to donate$1,000 to a gun control charity which is supporting the bill. An onlooker suggests that their combined behavior is pointless: they are
just fighting a zero-sum battle. She points out that it would clearly bebetter if they both donated the money to Oxfam instead—a charitythat Rebecca and Christopher both support. While Rebecca andChristopher would each rather their own $1,000 went to fighting thebattle for the gun control bill, they accept that the onlooker is right.
They each think that Oxfam is a good charity, and would prefer that
$2,000 is donated to this organization than that $1,000 is given to
help the bill and $1,000 to hinder it. So they decide to make the deal.
Situations like this can be quite common. As well as gun rights and gun
control, there are other pairs of almost diametrically opposed charities,

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such as pro-life and pro-choice, or the Republican and Democratic political parties. Donations to each of these pairs range from hundreds of millions of dollars per annum to billions of dollars per annum, so there are
significant gains to be made.
Though the numbers in the vignette were carefully balanced to makethe situation clearer, the ability to trade when supporting opposing causes
is quite robust. To begin with, it works even if the opposing charities aren’t
equally efficient at using donations to achieve their aims. For example, itwould work if the gun control charity were twice as effective but Christopher was only planning to give half as much money as Rebecca. It would
also work if they were planning to help by very different amounts. For
example if the charities were equally effective, but Christopher was planning to donate $10,000, then they could just swap off $1,000 of the donations, leaving Christopher donating $9,000 to the gun control charity. It
could even work if they had different empirical beliefs about the effectiveness of the charities. For example, the trade would still make sense if
they each believed that their own supported charity was somewhat more
effective than the other—so long as they thought that this gap was sufficiently small compared to the value of donating to their compromisecharity.2
In reality, apparently opposed charities will produce some additional
benefits or costs that both parties agree on, such as a more educated public, making the existing regulation more nuanced, or creating a morepartisan political culture. However, even if these other effects are net positive, the perceived value of them is likely to be only a small fraction of
the perceived value of the donation and in many cases there will be acompromise charity that is judged by both to outweigh these side benefitsof the opposed charities.
VARIETIES OF MORAL TRADE
These examples have focused on a direct clash between two different
moral views, but similar examples arise when a moral view is contrasted
with prudence. For example, Victoria—the vegetarian in the first vignette—
could find people and simply pay them to become vegetarians. For somepeople who are already on the fence about vegetarianism, or who wouldn’t
2. For example, suppose they each thought their campaigners were twice as effective as
those of the other side ðso that $1,000 going to both charities was worth the same as $500 totheir charityÞ. Then they are comparing something equivalent to $500 to their charity withthe option of $2,000 going to Oxfam. If they think that money going Oxfam is more than aquarter as good as money going to their lobbyists, they should agree to trade. One reason
people might systematically estimate the effectiveness of their campaign to be higher thantheir opponents think, is if they think that their arguments are stronger and hence more
likely to gain traction. ðI would like to thank an anonymous referee for this point.Þ

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find a vegetarian diet particularly difficult, there would be a sum of moneythat Victoria could offer such that they would be prudentially better off
making the trade and Victoria would consider the improvement to the world
to be worth the financial sacrifice.3
There can also be cases where each party’s gains from trade involve
self-regarding and moral components. Indeed the first vignette with Victoria and Paul was already like this, since they were both making internal
trade-offs between prudence and morality. The moral trade allowed thema new way to gain a lot of what they thought was good ðanimal welfare,poverty reductionÞ for a relatively small prudential cost ðdonating 1 percent, giving up meatÞ, leading to an outcome that they each judged to bebetter, all things considered.
We could summarize these cases by what each person sees as thechange in the moral value and prudential value from making the trade,
compared to the status quo. For Victoria and Paul, it is moral gain plus
small prudential cost versus moral gain plus small prudential cost. For
Victoria just paying someone to become a vegetarian, it is moral gain
plus small prudential cost versus pure prudential gain. For Rebecca andChristopher, it is simply moral gain versus moral gain. Since the mixed
cases are relevantly similar to the pure cases and it would be useful todiscuss them together, let us define moral trade so as to include both:Moral Trade: Trade that is made possible by differences in the parties’ moral views.
I shall use the term regular trade to refer to trade that is not moral trade.
I shall use the term pure moral trade for moral trade where both parties
view the result as morally superior and mixed moral trade for other cases.
Note that there are trades where each person thinks the outcome ismorally superior which don’t count as moral trade on this definition. For
example, suppose the directors of two charities with different resource
needs trade a car for a website redesign. Even if they have different
moral views, this is a trade that was made possible by the different resource needs—it didn’t require a difference in their moral views. Cases ofthis sort are much more similar to instances of regular trade than to thecluster of examples discussed here, and so the definition of moral trade
was constructed to exclude them.
Note also that as well as substantive differences in moral views, I
include differences due to different indexicals. For example, if Mary and3. Donations to charities with paid employees could be seen as examples of this kindof moral-for-prudential trade. A donor effectively pays an employee of the charity to perform some good act that the employee would not have otherwise done. This can be more
efficient than the donor doing that good act directly. Such situations could be seen as
examples of specialization or professionalization via ðmixedÞ moral trade.

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Susan both hold an agent-relative view which gives a special place to theagent’s family, then for Mary this will be a special place for Mary’s family
and for Susan it will be for Susan’s family. This could give rise to opportunities for moral trade. Similarly, a moral theory might give an agent astrict duty to tell the truth but not require any action concerning whether
others tell the truth. If two people held this theory, it would give themdifferent duties, which again could give rise to interesting opportunities
for moral trade.
An interesting edge case for the above definition is the possibility of
intrapersonal moral trade. Many people are guided by prudential considerations and moral considerations in a rather ad hoc mixture. It is possible that they will notice that a certain pair of behaviors is dominated byanother pair of behaviors, being both prudentially and morally better. For
example, consider the case of Alex, who would dearly like to fly from
Boston to Paris for a cultural holiday, but is deeply concerned about carbon emissions and climate change.4 He decides that he can’t justify theprudential benefits at such a moral cost. However, then a friend suggeststhat he could fly there and offset twice that amount of carbon at a relatively small cost. He likes this idea, since it allows him to finally see Paris
despite a small additional cost ðenhancing his overall prudential interestsÞ, while simultaneously helping fight climate change overall ðbetter
fulfilling his moral viewÞ. Flying with doubly offset carbon emissions istherefore an improvement over staying in Boston on his two different
value systems and constitutes a kind of internal or intrapersonal moral
trade. I shall not formally include intrapersonal trade in the definition,
but some of what I say below would apply to these cases as well.
SOME ECONOMIC THEORY OF MORAL TRADE
What can we say about the theory of moral trade? First, it is worth pointing out that moral trade is already encompassed within the standard definition of trade in economics. When economists speak of a person’s preferences, they include both the person’s prudential preferences and theirmoral preferences5 in an undifferentiated set of preferences. So whenit comes to trade, moral trade is mixed in with regular trade. For economists, moral trade is thus not an additional kind of trade, but a subcategory.

4. Julia Driver provides a detailed discussion of a case like this in “Moral Bookkeeping
and Carbon Offsets,” in Consequentialism and Environmental Ethics, ed. Avram Hiller, Ramona Ilea, and Leonard Kahn ðLondon: Routledge, 2014Þ, 164–73.
5. This raises a metaethical question. I have attempted to neutrally refer to ‘moral
views’ rather than ‘moral beliefs’ or ‘moral preferences’. Does it matter for a theory of
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This does not mean that it is well known or extensively studied.
Apart from contexts when they are carefully outlining definitions, economists pay relatively little attention to the fact that their definition ofpreferences includes moral preferences. While it is technically covered by
the existing formalisms, a paper on moral trade would be considered surprising in economics.
One way to look at moral trade from the perspective of economics
would be to note that while we have extensive trade based on variation inprudential preferences, there is strikingly little trade based on variation in
moral preferences. Moreover, there are almost no mechanisms for facilitating such trade. A common assumption in economic modeling is a“complete market” where everything is available for trade,6 but in reality
the market for moral trade is very incomplete.
Economic approaches could be used to transform the very simple
examples of moral trade that I give ðwhich we could call moral barterÞ into
more sophisticated systems to realize greater gains. For example, we could
introduce moral trade equivalents of currency, markets, bargaining, and professionalization. I shall touch on each of these, but a full treatment is beyond
the scope of this essay.
We can also combine techniques from economics with techniquesfrom normative ethics to get more clarity on the nature of moral trade.
When two parties are in a situation where moral trade could take place,7
there will be a set of options available to them. These include all combinations of them each acting in independent ways as well as all the ways
they could act in concert with each other. Each of these options can beassessed according to each of the two parties’ moral views. We could associate each option with a pair of numbers ðc1, c2Þ representing its choiceworthiness according to the first view and according to the second view.8
We could then represent these options as points on a graph, where thevertical axis represents the choiceworthiness on the first party’s moral
view and the horizontal axis represents the choiceworthiness on the second party’s moral view ðsee fig. 1Þ.
about desires? It seems to me that it does not. After all, just as different tastes can give us
mutual reason to perform regular trade, so different beliefs can give us reason to perform
regular trade. For example, a large amount of stock market trade only occurs because
people have different beliefs about the future valuation of the stock.
6. See, for instance, Mark D. Flood, “An Introduction to Complete Markets,” Federal
Reserve Bank of St. Louis Review 73 ð1991Þ: 32–57.
7. This can be scaled up to any number of parties in a trade, but the diagrams would
become much more complex.
8. Not all moral theories will have choiceworthiness that behaves exactly like anumber: some theories may allow for incomparability, and for some theories the differences between numbers may not be meaningful. Figures 1 and 2 only assume comparabilityðand their point could be made less elegantly even without comparabilityÞ. Figures 3 and 4

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FIG. 1.—The available options displayed according to the choiceworthiness each party
assigns them. The Pareto optimal options are circled.

I have circled four of the options, because they have a special status.
They are Pareto optimal, meaning that for each of them there is no otheroption which is better according to one view and at least as good according
to the other. In contrast, the uncircled options are Pareto dominated. For
each of them there is at least one option that dominates them: being better according to one view and at least as good according to the other.
From the perspective of a neutral onlooker, we would hope that they could
agree to choose one of these circled, Pareto optimal, options.
It may look like this diagram builds in an assumption that the parties’
moral views are orthogonal to each other, but it does not. To the extent towhich the views are aligned, the points representing the options will bewill assume that the differences between the numbers are meaningful: that the theory is
cardinal. None of this analysis assumes that the zero point or the scale is meaningful.

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correlated, being scattered closer to the positive diagonal. Opposed moral
views will create a negative correlation.
In cases of moral trade, there is an additional important element.
One of the options represents a default or status quo: what would happen if they do not trade.9 In figure 2 I have marked this option with across through it. Two of the Pareto optimal options do not dominate thisdefault. This means that they are worse than the default according to
one of the parties, so if the trade is being freely made, that party would
refuse to consider that option. This leaves us with the options that lie in
the indicated quadrant: above and to the right of the default, of which aneutral party would hope that they choose one of the two circled ones.
The question of exactly which option would get chosen depends
upon how the parties negotiate. In economics, this is covered by bargaining theory.10 Developing this here would take us too far afield, but
we can at least note that the first party ðmeasured by the vertical axisÞ
would prefer the topmost option and so on down to the default, while
the second party would prefer the rightmost option and so on down to
the default. The distance by which an option is above the default represents how much “moral surplus” there would be from the first party’s
point of view if they agreed on it ðand similarly for the distance to theright for the second partyÞ. Depending on how the parties negotiate it ispossible that a considerable portion of the potential total moral surplus
might be lost.
In some cases, there might be no options that are above and to theright of the default ðsee fig. 3 where I have removed all such optionsÞ. If
so, it might look like no trade is possible. For example, suppose that two
people are working out how to spend their Sunday afternoon and were by
default going to work on their individual projects, related to their different moral views. They realize that if they worked together on the same
project, they could achieve significantly more gains. The options where
they team up like this are labeled A and B. However, they each think thatthe other person’s project is not as morally valuable as their own, suchthat joining the other team would be slightly worse than continuing towork alone on their own project.

9. The analysis of moral trade up to this point is similar to that of moral uncertaintyðthe theory of how to make decisions when uncertain about moral considerationsÞ, with
options being compared in virtue of their choice-worthiness according to different moral
theories and the ideal option to choose being restricted to the Pareto optimal options.
However moral uncertainty does not have an analogue of the default option. For an introduction, see Ted Lockhart, Moral Uncertainty and Its Consequences ðOxford: Oxford University Press, 2000Þ.
10. See, e.g., Abhinay Muthoo, Bargaining Theory with Applications ðNew York: Cambridge University Press, 1999Þ.

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FIG. 2.—Adding a restriction that options must be Pareto superior to the default option

If they know that this situation will be repeated ðsay, each weekÞ thenthey could agree to alternate the project they team up on. This shows
the value of considering a wide array of options at once when trading toincrease the gains of moral trade. However, suppose that this case is a oneoff opportunity. What then?
One way out would be to suggest a gamble, for example, to flip acoin and to team up on the winner’s project. Alternatively, they could
use a randomized method with unequal probabilities. Such randomized
methods will typically be judged to have values that span an arc from A
to B.11 For example, a 99.99 percent chance of working on A’s project
would typically be considered by both parties to be almost the same value

11. If both parties are risk neutral, it will form a straight line segment.

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FIG. 3.—The choiceworthiness of new options representing weighted lotteries between
options A and B.

as working on A’s project for certain, and as this chance is lowered bit bybit, the value will move slowly across the graph until it becomes very close
to the value of B. There will often be some range of probabilities suchthat randomizing which project they team up on using that probability
will dominate the default option of working separately. They could thentrade to one of those randomized options, flip the coin ðor run the lotteryÞ, and head off to the winning project together.
Another way out would be via side payments, ideally in some moreor less continuous medium. For example, the person whose project they
team up on could give the other person a sum of money. In order tokeep this as an example of pure moral trade, let’s suppose that they dothis by reallocating some of their charitable donations for the year to acharity of the other person’s choice. This is represented in figure 4. The

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FIG. 4.—The choiceworthiness of new options representing starting with A or B andmaking a side payment to the other party.

lines that stretch out from A represent the results of teaming up on A
combined with a side payment of a certain size. As with the randomized
method, there is reason to expect small differences in side payments to
produce options that are close together in value and so produce a continuous line. The slope of this line would be set by the party’s relative
moral valuations of the two charities that the donations are being switchedbetween. If the payments are relatively small, then these lines should be
relatively straight. If the lines have the shape indicated in figure 4, then thedominant options would involve teaming up on the second person’s project and that person switching some portion of their donations to the first
person’s preferred charity. In this particular setup, the options createdby the side-payment approach dominate the options created by the ran-

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domized approach and this would always happen unless the lines are quite
curved.
CONSEQUENTIALISM, DEONTOLOGY, AND VIRTUE ETHICS
Let us now consider how moral trade fits in with the major branches ofnormative ethics. To some extent, it would seem to be a natural fit withconsequentialism. Since most forms of consequentialism are based around
agent-neutral value, consequentialists typically do not care who achieves
a valuable outcome, so long as it is achieved. This means that a consequentialist should see a lot of potential value in moral trades, regardlessof whether the other party is a consequentialist or not.
In contrast, many deontological theories involve agent-relative value
and side constraints. The most obvious effect of side constraints is thatthe trade cannot involve the agent doing something she judges to violate
a side constraint. However, this should still allow many opportunities for
trade: for instance, none of the examples above involve the breaking ofside constraints.
There are also more subtle effects. A deontologist who is a vegetarian for moral reasons concerning animals may think that it is impermissible for them to eat meat, and that this is much more morally important than convincing others to not eat meat. They might therefore
see relatively less reason to engage in moral trade. However, it seems
unlikely that they could see it as without value. For example, if they area vegetarian because they think it is immoral to inflict suffering on animals, then presumably they are at least somewhat concerned that animals do not suffer and could see at least some value in convincing otherpeople to stop causing them suffering.
It might be thought that the central role of the agent’s intentions
in many deontological theories would limit the benefits of moral trade.
For instance, if a person was only donating to help the poor because thiswas part of a moral trade and not out of a concern for human welfare,this might lower or even nullify the moral value of that act. However,there are reasons to think that there would still be gains to make frommoral trade even in cases of this sort. First, it might be that even if the actof donating with no real concern for the poor lacks value, the otherparty’s act of convincing this person to donate may possess moral value.
Second, it would be puzzling if the theory said there was nothing morally
superior about the situation in which poor people were helped.12 And
finally, society routinely tries to give people nonmoral reasons to do
12. As John Rawls put it: “All ethical doctrines worth our attention take consequences
into account in judging rightness. One which did not would be irrational, crazy.” John
Rawls, A Theory of Justice ðCambridge, MA: Harvard University Press, 1971Þ, 30.

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moral things, such as threatening them with jail if they murder someone. Assuming the theories see some value in such ways of avoiding
murder, they should also see value in trades that give people nonmoral
reasons for abstaining from acting in other unethical ways.
Indeed, it is possible that side constraints or agent-relative value
could encourage moral trade. For example, someone might think that
it is impermissible for them to lie in order to avoid some suffering butthat it wouldn’t be impermissible to convince someone else to makethis lie in order to avoid the suffering. It could also be that having arigid view that lying and breaking promises is impermissible could
significantly help to foster moral trade. For it could let other parties
see that the deontologist is truthful about their claims and will follow
through with their side of the deal. It could therefore help with the
key trust issues involved in making moral trade work in practice.13
It may seem that virtue ethicists would see much less reason to engage in moral trade than consequentialists or deontologists. For example, if a vegetarian virtue ethicist is refraining from eating meat because
it is the compassionate thing to do, then it is not obvious that it is equallycompassionate to convince someone else to refrain from eating meat.
However, theories of virtue ethics often stress the importance ofthe promotion of virtue in others. For example, in the Nicomachean Ethics
Aristotle analyzes the sources of virtue and finds habituation to be particularly important: we become just by doing what is just, temperate bydoing what is temperate, brave by doing what is brave.14 By this he meansthat doing what is required by justice, even if for the wrong reasons, leads
us to become just and to go on to do these just acts for the right reasons.
He argues that this justifies moral education to inculcate virtue in others,
and even for states to use coercion to induce habituation and hence
improve virtue in their citizens.15
Moral trade should also be able to create habituation and hence
improve virtue. While trading with a friend to convince them not to eat
meat wouldn’t immediately create the virtue of compassion, it should
habituate them into acting more in accord with compassion, which may inturn lead them to become more compassionate. It thus seems that virtue
ethics, too, provides reasons for making moral trades.

13. The trust issue could be particularly difficult for consequentialists given that, if
there is no way of enforcing the deal and no potential reputational costs, most forms ofconsequentialism would say that it is wrong for the consequentialist to go through with
their side of the deal. Consequentialism is thus more reliant on these practical mechanisms
than the other branches of ethical theory.
14. Aristotle, Nicomachean Ethics, ed. Roger Crisp ðCambridge: Cambridge University
Press, 2000Þ, bk. 2, chaps. 1–4.
15. Ibid., bk. 10, chap. 9.

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TRUST
The major practical obstacle to the gains from moral trade is that of insufficient trust between the two parties. This obstacle comes in two parts.
Neither of them are different in principle from regular trade, but in practice they can be much more difficult to overcome.
The first part concerns trust about factual issues, so we shall call it
factual trust. Suppose we are engaged in regular trade. I am exchanging
some of my money for some fruit from your garden. If we were particularly paranoid, or lived in a particularly lawless society, there may bedifficulties in setting up the trade. Do you hand over the fruit first, or do
I hand over the money? There might also be some issues of trust after
the trade. Is that a genuine banknote? Will those apples go bad more
quickly than I was led to believe? However, these issues are not too
burdensome and trades like this can happen fairly easily, even between
people who do not know each other.
In comparison, if Victoria agrees to donate 1 percent of her income
in exchange for Paul becoming a vegetarian, how do they know theother one is continuing with the deal? The continuing nature of thisdeal makes trust a big issue. This is particularly so because, unlike most
instances of regular trade, the services are not being delivered in thepresence of the person who bought them. Note that one could have regular trade with these properties, and one could have moral trade which
is one-off with services delivered in the presence of both parties. For
example, if two parties are trading a vote for one policy with a vote foranother, then they only need to be able to trust each other until both
votes have been cast. However, in practice it seems likely that this problem of factual trust will be greater for moral trade.
There are various strategies for overcoming this problem in practice.
In cases where the parties know each other, simply trusting one anothermight suffice, since they are unlikely to be interested in deceiving eachother.
In other cases, the parties may be able to occasionally check up oneach other and call off the deal if either side has not kept up the arrangement. For instance, someone could ask to see the other party’s receipts
for their donations at the end of the tax year. When this is possible, itturns the situation from a one-shot prisoner’s dilemma to an iterated
prisoner’s dilemma of unknown duration. If the parties think there aresufficiently many rounds left to come, then they have reason to keep totheir side of the deal so as to be able to continue the arrangement.
It is also possible to arrange penalties for noncompliance, including
legal penalties, just as we have for regular trade. This would be anotherway of escaping the prisoner’s dilemma: having society act as leviathan tolower the payoff for defection, changing the nature of the game. WhileOrd

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one party can’t legally force the other to change their diet even if anagreement was entered into, there are other possibilities. The most simple
is for each party to put money into escrow, which would be forfeited ifthey broke the deal. If enough money was placed in escrow this could give
both parties reason to keep to the deal even if the chance of deception
being discovered was low. This is how contract law works for regular trade:
we don’t force an actor to make a movie just because they signed a contract to do it, instead they risk financial losses if they breach the contract.
With regular trade, our societies have established an implicit contract
when you buy something, which overcomes a lot of the transaction cost ofwriting contracts. And even at the greengrocer, most of the factual trust
comes from custom rather than from criminal law or contract. For example, if the greengrocer refused to give you a dollar of your change, itwould be difficult to appeal to the police to get this back. If moral tradewere to become sufficiently popular, customs might evolve to support it,
and the law might be updated so that moral trades also establish implicit
contracts.
The second problem of trust is what one might call counterfactual
trust. For example, Victoria needs to trust that Paul wouldn’t have become a vegetarian without that agreement, and he needs to trust that
she wouldn’t have increased her donations to Oxfam to 1 or more percent without the agreement. This is particularly hard to police. It is evendifficult for each party to determine the truth of their own counterfactual.
Paul might be pretty sure he was not about to become a vegetarian thatyear, but who knows about the future?16
In theory this problem of counterfactual trust exists even in regulartrade. How do I know you wouldn’t have given me the fruit from yourgarden if I didn’t pay you? Such problems of counterfactual trust are
pretty serious in trade between friends as their interests are often sharplyaligned. To some extent being your friend means that I start to want you to
get the things you desire and vice versa. It is perhaps one of the reasonsthat trade between friends can be difficult to set up. In contrast, there isvery little chance that the greengrocer would have given me my vegetables if I hadn’t given him some money. Most regular trade therefore
comes with a high degree of counterfactual trust.
Counterfactual trust appears to be a big problem for realizing thefull gains from moral trade. Unlike for factual trust, contract law seems
to be powerless. Playing out the transaction over a long time period seems
to exacerbate the issue, rather than fix it: it is harder for either party to
predict what someone would be doing a long time hence were it not forthis trade. Counterfactual trust is minimized in situations where the ac16. This could be a particular challenge if he was known to be interested in moral
trade and if many moral trades concerned vegetarianism.

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tions required by the trade take place over a fairly short timescale ðsuch asa yearÞ, and where the parties are friends or people of known moral
character who can trust each others’ sincere judgments about what theywould have done otherwise.
PRACTICAL CASES
The most well known practical examples of moral trade concern the exchanging of votes. For example, consider the role of an independent
senator or leader of a small single-issue party who holds the balance ofpower. In such a case, it is a commonplace for them to trade their support
in passing several of the government’s major bills in exchange for them
implementing a new policy favorable to the senator’s ðor small party’sÞ
most strongly held view. The different parties involved in the trade consider their relative bargaining power and how much they think is at stakein the different cases, then strike a moral trade, trying to make the overalloutcome as good as possible from their own perspectives. This kind of
trade during legislation can allow Pareto superior combinations of policies to be agreed upon.
This exchange of votes has also occurred in the general public. In the2000 and 2004 US presidential elections, a number of websites appeared
to enable people in different states to change their votes in such a waythat they each thought the outcome was better than the status quo. For
example, suppose a person in a safe state preferred Al Gore to Ralph
Nader to George W. Bush, while a person in a swing state preferred Ralph
Nader to Al Gore to George W. Bush, and that absent any trade they weregoing to vote for their first choice candidates. This would produce a votefor Nader and a vote for Gore, but they would be inefficiently distributed:
the vote for Gore would happen in a state where it would have very little
chance of changing the outcome. If they instead agreed to vote for theother person’s first choice, the vote for Gore would have more chance ofelecting him and the vote for Nader would be equally good at helping him
win the 5 percent share needed to qualify for federal funding at the next
election.
Websites such as Nader Trader and VotePair helped to facilitate suchtrades.17 They acted as simple markets for these moral trades, allowing
thousands of people to put up offers and find others with matching offers. There were initially serious questions about the legality of such sitesðleading several to close down in fear of prosecutionÞ, but the services
they offer have since been officially declared to be legal, with the US 9th
Circuit Court of Appeals declaring, “Whether or not one agrees with these
17. At the time of writing, neither of these is still live, though VotePair is archived athttps://web.archive.org/web/20041220193356/http://votepair.org/.

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voters’ tactics, such efforts, when conducted honestly and without moneychanging hands, are at the heart of the liberty safeguarded by the First
Amendment.”18
Prior to the 2012 US presidential election, an even more interesting website appeared. Repledge.com was set up to allow people to swap
off their donations to their preferred political parties in much the same
was as my example concerning gun rights and gun control.19 Users would
donate a sum of money, list whether they were supporting the Republicans or the Democrats, and choose an alternative charity. At the end of
the process most of these donations would be matched off against eachother and sent to the alternative charities, with the unmatched surplus
for the political party that got the most financial support being sent on tothat party.
This would be a clear case of a market for moral trade, helping pairsof parties to realize exchanges that they both think make the world abetter place. However, the site was taken down before such trades could
be made, presumably due to unresolved legal questions arising from thefact that it involved political donations, which are subject to additionalrules and regulations.20
Hopefully such moral trade markets will be more successful in the
future. To the best of my knowledge, nothing would stop someone fromsetting up a site like Repledge.com dedicated to cancelling out donations which aren’t election contributions. For example, a site could be
set up to cancel donations between advocates of gun rights and gun control. Creating such markets would help to remove the moral and economic inefficiencies in the charity sector that are created by the existence of charities with opposed missions.
One could even cater for the possibility of different efficiencies forthe charities and different beliefs about these efficiencies by getting
people to register an additional number when they make their contribution. Each contribution would say something of the form “I’m willing togive up to $6,000 to this charity but am prepared to cancel each dollar
against 0.8 dollars pledged to this opposing charity.”21 Such contribu18. Porter v. Bowen, No. 06–55517 ð9th Cir. 2007, 9359Þ.
19. I would like to thank Owen Schaefer for bringing this to my attention. At the time ofwriting repledge.com is down but is archived at http://web.archive.org/web/20120625133032/http://www.repledge.com/.
20. Repledge’s founder, Eric Zolt, made a request to the Federal Election Commissionof the United States to see if it would issue legal advice on some questions related to election contributions regulation, but the Commission’s vote was tied 3–3, so it couldn’t offer
clear advice on the matter.
21. This is equivalent to stock exchanges where people offer to buy or sell somenumber of shares at some price and mutually agreeable offers are automatically matched
up.

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tions could then be automatically matched against each other, leaving unmatched some people who were contributing to the more popular charity
or who were trying to drive particularly hard bargains. This flexibility would
ultimately be useful, especially when the opposed charities are clearly notequally efficient, but it does significantly complicate things and a first effort
would probably do better if kept things simple and only offered one-to-one
exchanges.
If people found success with relatively constrained cases like these,
they could try to extend them to more complete markets. For instance,
one could have a moral-trade version of eBay or Craigslist, with people
offering and requesting a great variety of moral services with associatedprices. Ideally there would be some form of currency to make the trading more efficient. This could be regular currency such as dollars orpounds, or it could be some kind of virtual currency, perhaps one thatcan only be exchanged for moral services.22 There are many possibilities,
so at this stage it is very difficult to predict how a mature market for
moral trade would develop and progress.
And of course there are still the ad hoc arrangements between
friends and colleagues that we started with, like those of Victoria andPaul, or Rebecca and Christopher. While the overall scale is smaller, thegains from each individual trade may well be large. In the case of Victoria
and Paul, they each thought that by trading they were increasing theirpersonal moral impact by a large proportion. These personal arrangements are particularly well placed to avoid the problems of factual andcounterfactual trust. Moreover, one doesn’t have to wait for someone toset up a larger enterprise but can start realizing the benefits immediately.
THE GAINS FROM MORAL TRADE
The gains from regular trade have been vast. Without some kind of trade,
it is unclear that humans could do much more than merely survive. Our
technology, cities, and culture, could not exist without the ability to specialize our labor and this has largely been achieved through trade. We eachdo the work that other people want done, which gives us a salary to spend
on things that enrich our own lives ðpaying others to do the labor whose
fruits we seekÞ. This simple process has enabled the rise of civilization andproduced great value.
How large are the potential gains from moral trade? It seems doubtful that they could be on that same scale: partly because having one typeof trade is perhaps enough to get the main gains, and partly because of
the additional challenges of acquiring the counterfactual trust needed
22. While it has some drawbacks, the latter might help avoid anxiety about trading
between sacred and nonsacred values.

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for moral trade. However, there is at least some reason to think that thepotential gains are large.
How could we quantify these gains? The gains from regular tradeaccrue to billions of different individuals, but in each case the gains looksomewhat similar ðimproving someone’s wellbeingÞ, and we have ways ofassessing these gains in aggregate. The gains from moral trade would bemuch more difficult to assess, as they are gains in how much better theworld is, or how morally superior things are from the perspectives ofeach of the moral views of the trading parties. These are much morediverse than the prudential preferences of different people and it is notclear whether there is any sensible way to aggregate them into something like a total or an average. One could imagine a case where all moral
theories agreed that the outcome would be 10 percent better with moral
trade than without, in which case we would have a kind of definitive
answer ðthough only expressible as a percentageÞ. However, if they disagreed on these percentages there would be no clear way to weight themto perform an average.23 More problematically, many theories would
completely reject the idea of quantifying the moral difference between
the situations.
However, we can at least make some intuitive progress. For example, it seems that moral trade could remove significant inefficiencies in
the charitable sector, where opposed charities have budgets totaling billions of dollars per annum. It may also allow us to greatly cut down on
the number of people performing acts that don’t give them much prudential value, but which some people think are morally terrible ðsuch aspurchasing meat that was produced with very bad animal welfare practicesÞ, as those who hold these moral views could always offer somethingof moral or prudential value in exchange.
I should also note that nothing guarantees moral trade will makethings better rather than worse. It only guarantees that it will be better
according to the views of the parties who make the exchange. Just as
regular trade could have negative externalities ðmaking things worse forpeople who weren’t involved in the tradeÞ so moral trade could havenegative ðmoralÞ externalities: making things worse according to themoral views of people not involved in the trade. If this were sufficiently
23. There are two parts to this. First, it is unclear how to weight the different views interms of their probability or popularity. Second, even if we could do that, the average ofdifferent percentage gains isn’t always the midpoint, but depends on what bases they arerising from. This would require a way to compare absolute value differences between moral
theories. This problem also arises in cases of moral uncertainty, where it is known as the
problem of intertheoretical comparison of value. See Edward J. Gracely, “On the Noncomparability of Judgments Made by Different Ethical Theories,” Metaphilosophy 27 ð1996Þ:
327–32; Ted Lockhart, Moral Uncertainty and Its Consequences ðOxford: Oxford University
Press, 2000Þ.

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common it could overcome the benefits, but if the moral trade is sufficiently engaged in by people of all views then I find this very unlikely.
Especially considering that each moral trade is likely to have many positive
moral externalities ðmaking things better according to the moral views ofpeople not involved in the tradeÞ.
According to moral realism, moral trade could also have negative
effects if the trades make things worse overall on the objectively correct
moral view—even if no one holds this view. This would also seem to beunlikely. While it is possible according to moral realism for no one tohave the correct moral view, it seems likely that our moral views at least
cluster near it and that systematically improving the world according toour moral views would be more likely to improve it according to thecorrect view than to make it worse. Indeed if our views on morality are so
misguided that we are systematically pointing away from the objective
moral requirements, then we would presumably have bigger problems
than moral trade, and it would be difficult to blame moral trade forour situation as in that case practical rationality, moral education, andstrength of will, would all be making things worse.24
Finally, moral trade could incentivize bad behaviors. For example,
someone who thinks that animals have no moral value might start eating
meat in the hope that others will pay him to stop. This problem of perverse
incentives already occurs in other areas: for instance, insurance makes
people more lax about risks since someone else will pick up the bill. If we
don’t have good ways of dealing with such perverse incentives, they could
erode a significant portion of the value of moral trade in some areas.
However, there is little fear of such perverse incentives causing moral trade
to make things worse rather than better. For if making offers of moral
trade in some domain were strongly believed to make things worse overall,then people would simply stop making such offers.
CONCLUSIONS
Trade is everywhere. It is one of the foundations of modern prosperity.
However it is usually restricted to cases of mutual prudential advantage.
There appear to be great potential gains from moral trade, both in termsof local ad hoc arrangements and larger organized markets. There is also
a lot of potential for further philosophical and economic analysis of
the theoretical underpinnings of moral trade, exploring how much of
the theoretical and practical apparatus of regular trade can be directly
brought across and doing the new work required when it cannot. I hopethat this essay is just the first step in a much longer journey.
24. The situation would be similar to blaming rationality in a world where we areunfortunately situated such that acting rationally on our beliefs leads to woe.