The Social Institution of Freedom and Responsibility:

the Impossibility of a Paretian Liberal and the Possibility of Freedom of Contract

Abstract

In this paper, I propose a resolution to “the impossibility of a Paretian liberal” in a liberal manner, and point out its problematique. Specifically, it will be verified that the resolution which overcomes weaknesses of previous resolutions can be made possible by the accurately reformulated condition of freedom of contract with ideas of higher-order judgments and the responsibility of choice acts, that have been recognized as natural implications of the liberalism which interpreted as the principle of freedom of choice acts. Finally, the sociological mechanism of this system of freedom and responsibility, and its practical problems will be briefly outlined.