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Values, Morality, and Ethics: A Useful Framework

AnalogKid

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There has been a lot of discussion recently about these things, without much understanding of what they actually are. Also, thanks to fallout3 there's a "moral ambiguity" issue floating around. The Witcher promises us a different morality, and of course we have the gaming journalism ethics flamewars. On top of all that, there are a few interesting threads about what makes for good RPG choices and consequences (good vs. bad, good vs. good, bad vs. bad).

I'd like to propose a very limited framework of ideas to try and help sort out some of this crap. I say "very limited" because what I describe will be wrong. This is an area that takes MANY years to really get, and many books' worth to describe accurately. Terminology and semantics are VERY important, but I'm trying to simplify things so they're usable. I'll be using words in very particular ways that are not necessarily the way everyone else uses those words. Those differences are exactly WHY I'm posting this. I hope to accomplish 2 things:

1) Dumbfucks will be better able to communicate clearly in a way that doesn't create contradictions and confusion. Hopefully this will help them contribute to the various discussions rather than derail them.

2) RPG designers might be able to use this simple framework to create various value-systems that are believably coherent and thereby create "meaningful" moral ambiguity instead of just empty alternatives that people laugh at. Also, for a given value-sytem, they can create situations that really are interesting for the player.


Here we go:
  • - At the base of everything are values. These are things that people act to accquire and to keep. (the particular list of Values is actually the result of a lot of other thinking in terms of metaphysics and epystimology, but for this discussion, lets just start here)

    - Next up are virtues. These are attitudes or principles that are supposed to result in the accuisition and retention of values. I think we can generally ignore virtues, because they get supplanted later by more detailed things and in a relatively quick game, it would be difficult to accurately define them.

    - Next is morality. This can be most simply defined as a hierarchy of values. In other words, a list of values does not define morality. You need to add the relative importance of each value so that confilcts can be resolved in a consistent manner. This is the most interesting layer for most people because they have honest disagreement about the relative importance of various Values. It's also very easy to ignore an ultra-important long-term fundamental value in the face of immediate accquisition of much less important Values.

    - Finally, we have ethics. These are detailed rules that people are supposed to follow. They are basically the result of pre-evaluating the morality hierarchy and pre-defining how to resolve common value conflicts. Their benefit is that because they are all "actionable" rules, rather than more abstract concepts, people can follow the rules (i.e. behave ethically) without any actual thought or analysis on their part.
Now for some examples and application of this framework.
  • - "lawful' characters value predictabilty and consistency very highly, and are primarily focussed on ethics. They refuse to violate ethical rules, even if doing so is morally right, based on the context.

    - "chaotic" characters don't give a damn about ethics. They never pre-define their reactions, instead evaluating their own particular Value hierarchy (Morality) whenever confronted with a value conflict. This can allow mood and imperfect information to dramatically affect the result, which can lead to unpredictability and inconsistent behaviour.

    - "good" and "evil" are mostly unimportant. They are an attempt to categorize all possible sets of values and all possible arrangements of the value hierarchy into only two groups. That's pretty limiting. However, it can be useful for game purposes because one can define "good" as "consistent with my morality" and "evil" as "at odds with my morality". This lets different groups have different views of good and evil, even if they sometimes agree on what's good and evil.
Let's take a contemporary example to help understand things: Left (liberal) vs. right (conservative) in US politics. The founding fathers defined three values: Life, Liberty, The Pursuit of Happiness. Conservatives arrange their morality hierarchy so that Liberty and Pursuit of Happiness are more important than Life. Liberals put Life and Pursuit of Happiness on top of Liberty.

Notice there's also a disagreement about the fundamental value "Pursuit of Happiness". Is the Pursuit or the Happiness the actual value? This confusion is because it's not actually a FUNDAMENTAL value, but was presented as if it were. This is exactly what having a good framework can help avoid. Pursuit of Happiness is essentially the same as Liberty (i.e. opportunity to do what one wants), and shouldn't have been a separate value. Happiness is a different value altogether, and wasn't included in the list to begin with. So pretty much everyone is confused on this issue because they started with a muddled concept of Values, Virtues, Morality, and Ethics.

So to create a believable society in a game (familiar or unfamiliar, doesn't matter), or to clarify your own thinking so that you don't look like a fool:
  • 1) Start with a definition of Values. It helps if you use very simple, fundamental values, but even if you want to jump in with inappropriately complex, high-level Values, at least defining the list is better than not.

    2) Arrange the values according to their importance. This is not a strict ordered list, since things might be equally important. It's important to have a numerical weight to each Value because Value conflicts are seldom 1-to-1 tradeoffs. (i.e. if you give up Values A and B to get Value C, is that the right resolution?)

    3) If you like, define specific actions (Ethics) that, when followed, will automatically resolve Value conflicts in a way that's consistent with your Morality from step 2 (Note, this is impossible because there is an infinity of contexts and possible conflicts, but it might be useful for the more common conflicts).
As for contemporary Morality and Ethics, I will assert that all known systems are incoherent. The more time you spend actually thinking and studying these things, the more you realize that all religions and philosophies have contradictions. Some are worse than others, but in no case can anyone ever reliably say "I was taught [blank], so if you don't agree you're {evil / immoral / unethcial}. You have to dig out the specifics of what Values, with what relative importance (Morality), leading to what pre-defined behaviour (Ethics), leads you to disagree. Most of the time, it's the Morality level where Values are weighted that is the cause of disagreement. Very occasionaly, the Values themselves are different. Almost always, the Ethics are different, but they are not the cause of disagreement.

As for games, interesting decisions are those that involve difficult Value conflicts. The closer the total Value balance is, the more difficult it is to make the best decision. Also, the more discrete Values are involved in the evaluation, the more difficult it is to make the best decision because it gets exponentially more difficult to "add up" everything on the pro and con list. Using this framework, there is no "bad vs. bad" decision because in order for something to be "bad", it has to be in violaton of some Value, and therefore one is really deciding if that Value is more important than other Values.

I'd rather not get into a discussion of the actual content of value systems, since that'll just devolve into a flamewar. But I would love to have an interesting discussion about the framework itself, and whether or not my simple proposal is sufficient to guide game designers and individual thinkers who haven't spent a lifetime thinking about these issues.
 

AnalogKid

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Oh yeah, for game designers, another kind of interesting conflict is Ethics vs. Morality. This is the kind of thing that puts "the greater good" against what someone is "supposed to do". It's the direct result of the fact that Ethics can never be complete. There's always some context or specific situation in which the pre-evaluated rules of Ethics fail.

It can actually be fun to create a society with inconsistent Ethics. Take each Value, create an Ethical rule that supports that value to the exclusion of all others, and then just let the Ethical teachings contradict themselves. That's what most religions do. :)
 

MF

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Interesting. I like the hierarchy in morality you describe. I always considered the 'values' as being prioritized, with potentially shifting priorities. Thinking of morality as more of a tree is easier. At least when you're discussing it. And for AI programming.
 

galsiah

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I think it's an interesting subject in an analysis-of-how-people-act/think sense. It becomes a tiresome and pointless discussion only when the aim to to establish how-people-ought-to-act/think - i.e. to form some coherent, "correct" system.

It's interesting science/sociology. As philosophy, it's squarely in the "pass over in silence" section.

AnalogKid said:
This is an area that takes MANY years to really get, and many books' worth to describe accurately.
So often true of nonsense ;).

That seems a reasonable model to start from.


So to create a believable society in a game (familiar or unfamiliar, doesn't matter), or to clarify your own thinking so that you don't look like a fool: 1)...2)...3)...
That's fair enough, but as I said in the "right vs right" thread, it's not all you need to do. A believable society needs a believable history (whether or not it's presented explicitly in game). It's not enough that the morality/ethics/values... make sense as a system - their evolution into that system needs to make sense too.
That's "evolution" certainly in an "evolution of society" sense, and usually in a "biological evolution of the individuals" sense too.

If you're dealing with pretty standard human morality/ethics, it's probably not necessary to go overboard with the history. If a major interest of the setting is in some very significant moral/ethical differences, it is necessary. Such an alien system isn't going to seem credible without presenting (implicitly or explicitly) the context/history that led to its formation.


Also, the more discrete Values are involved in the evaluation, the more difficult it is to make the best decision because it gets exponentially more difficult to "add up" everything on the pro and con list.
Does it? It's going to be exponential in the number of choices you need to make, but I don't see how it's necessarily exponential in the number of Values affected - you don't need to evaluate all Value value combinations: only those that arise from available choices. [Even if you needed to do a pairwise comparison of every Value value to evaluate the "scores", you'd still be looking at only O(n^2) complexity.]

Possibly the most complex stage would be in translating possible actions into Value implications - but that can be just as complex for one Value as for 1000 (e.g. if that one Value were a function of 1000 intermediate "Values").

I think that the only way you'd get exponential complexity in the number of Values would be to include uncertainty. I.e. certain actions/events wouldn't produce definite results for Values - but rather probabilities (for 0/1 Values), or probability distributions (for many-valued Values). In that case, "adding up" the scores involves a "choice" at each Value - giving exponential complexity (in the absence of some simplification).

Anyway...


All this complexity stuff does become relevant when you're trying to define a practical system. You probably would want to model uncertainty - since any real-world situation is going to be uncertain to an extent.

For example, consider a simple action/decision: KILL [Y]

You can fairly easily be definite about the violation of a "preserve life" Value here. You usually can't be certain about the acts which form the motive for a KILL [Y]. You might be only partially sure that e.g. [Y] KILLED [Z]. You might presume there was no moral motive for [Y] KILLED [Z], but you don't know (either that "killing [Z] was moral according to [Y]'s morals+beliefs", or that "killing [Z] was moral according to your morals+beliefs". You also aren't sure of a load of facts about both [Y] and [Z].

Even such a simple decision quickly opens up huge uncertainty on a number of fronts. Thankfully, we have the important combinatorial tools of ignorance, thoughtlessness, prejudice, dubious certainty and Ethics.
With this in mind, you could probably pursue Morality as far as is possible, then have Ethics etc. come to the rescue when the clock runs out on thought. Of course you'd need to cut things off quite quickly for all characters, but it'd be interesting to cut things off more quickly for highly lawful/stupid characters - and leave things running for as long as possible for chaotic/intelligent characters (i.e. those who have both the inclination and the talent to moralize at length without taking an ethical short-cut).

This needn't be a simple process either - Ethics/premature-certainty needn't stop the process entirely. Rather it can constrain the search at each stage / along each branch. Different characters could tend to make premature assumptions, or take an ethical out early in different circumstances.

I guess it'd amount to a search for the illusion of morality. The character isn't attempting to find the most moral course - he's trying to find the course that gives him the greatest illusion of morality.

So, for example, a character might prefer to make an early decision on the basis of Ethics, than to search for the best solution according to his own morality. In examining the morality of various actions, he might find that every action has a moral downside. By sticking to the early Ethical action, he avoids this discovery, and can therefore preserve a greater illusion of morality.
If he's a "lawful" type, then taking the early Ethical out is probably even a plus in his moral system (even if a minus on another basis).

However, taking an early Ethical out means not making a great effort to find the most moral course. For many characters, that in itself probably goes against their values. The character might actually be maximizing the illusion of morality, but consciously one of his aims would be to maximize his morality. The gain in illusory morality by taking an early Ethical out would be largely eliminated by the knowledge that he was intentionally putting his head in the sand.
I don't know if I'd call this "chaotic" or "good" - probably something else entirely.

So everyone would be acting to maximize their own perception of their morality - for some characters that would mean usually following ethical rules unthinkingly; for others it'd mean a large amount of pre-ethical moralizing.
 

AnalogKid

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First, thanks for the positive comments, and I don't know how to move the thread. Can I even?
galsiah said:
It becomes a tiresome and pointless discussion only when the aim to to establish how-people-ought-to-act/think - i.e. to form some coherent, "correct" system.
I think it becomes tiresome when the aim is to prove that a particular system is "correct". Just building coherent systems can be quite interesting. Begin with some values, rank their importance, and then evaluate what kinds of ethical rules and "morally correct" behaviors are the result. Often you'll find that just slightly tweaking something can lead to dramatically different Ethics.

galsiah said:
As philosophy, it's squarely in the "pass over in silence" section.
Well, I agree that it's not philosophy, only a very small part of philosophy (about 1/5th, actually), but I find your insulting tone to be morally objectionable! You psuedo-fucker, you (sic).

galsiah said:
AnalogKid said:
This is an area that takes MANY years to really get, and many books' worth to describe accurately.
So often true of nonsense ;).
Point was to avoid the tiresome part above. I don't know it all, I'm not pretending I do, and what I DO know I can't accurately convey in a forum thread. Again with the psuedo-fucker thing, though.

galsiah said:
That's fair enough, but as I said in the "right vs right" thread, it's not all you need to do. A believable society needs a believable history ... If a major interest of the setting is in some very significant moral/ethical differences, it is necessary. Such an alien system isn't going to seem credible without presenting (implicitly or explicitly) the context/history that led to its formation.
This is just nonsense. ;) Part of my point is that as long as the system is (mostly) coherent (perfection isn't very believable, either), you don't need to find other ways to support it's believability. Players will think that there is an implicit history behind the creation of such a society. I think history is very important for describing a society in a game, and to the extent it's presented, the history needs to agree with the Value/Moral/Ethcal system. But If you're going to have a "warrior society", for example, you'd be a lot better off building a quick Moral hierarchy and pre-evaluating some ethical rules than you would be just "wingning it". History is another nice layer, but not essential, imo. For me it would depend on how much depth you really wanted, what kind of game it is, how big a part the society plays, things like that.

I'm reminded of something an ex Beth dev wrote about Morrowind (I think). It was basically that he disagreed with the lead writer because he thought the "truth" should be known, and then mis-truths could be crafted around that truth. The lead writer just wanted to write a bundle of different stories and not worry about which was true. The usefulness of my framework is that you can use it to write a bunch of alternative societies, and they'll be coherent enough that players will fill in their own guesses about history/evolution/why do they think that? without the designer having to hand-craft everything (hand-crafting can be better, but not always and not for lots of content).

galsiah said:
Also, the more discrete Values are involved in the evaluation, the more difficult it is to make the best decision because it gets exponentially more difficult to "add up" everything on the pro and con list.
Does it? ...Possibly the most complex stage would be in translating possible actions into Value implications - but that can be just as complex for one Value as for 1000 (e.g. if that one Value were a function of 1000 intermediate "Values").
You're right about the complexity, I wasn't trying to be mathematically precise there. Fuck me for being a nearly intellectual :( (imagine that, synonyms don't work as well as I was told). I meant "exponential" as an hyperbolic way of saying "super-linear". I was actually referring to the player's perceived difficulty in making a choice. With players, I don't agree that one choice graded from 1-1000 is equally complex or interesting as a 3-pronged value balance, each of which is graded from 1-333. Most RPG's present 1:1 Value conflicts (if any). "Kill[Y], saving [X], or don't, leading to [X]'s demise". (X doesn't even have to be a person, could be you getting money, or a town becoming good/bad, whatever). Fallout2 at least tried to get three options in the Redding decision, and that was a big step up, imo. My point is just that there's two ways to make a Value conflict interesting for the player (assuming interesting=complex): The first is to make it a close balance (since lopsided evaluations like "nuke megaton or get paid $50?" are hardly a dilemma), and the second way is to make more Values enter into the balance equation. The second a player starts thinking "If I do X, I strengthen Values A, B, C, ... but lose Values 1,2, 3 ...", then the perceived complexity of the decision is MUCH higher than just linear in the number of Values in the equation. The second is often interesting even if the balance is not close. Of course, if you can get a close balance of many Values, that's the multi-headed dick, baby!

It's also true that imperfect information and having to bring probability into it makes a BIG difference. Funny how black and white decisions aren't really worth-while in real life or in games, huh?

galsiah said:
I guess it'd amount to a search for the illusion of morality. The character isn't attempting to find the most moral course - he's trying to find the course that gives him the greatest illusion of morality...<snip>...So everyone would be acting to maximize their own perception of their morality - for some characters that would mean usually following ethical rules unthinkingly; for others it'd mean a large amount of pre-ethical moralizing.
I think that's true. According to the system, there's only one Morally correct action (assuming perfect information), but different characters ought to behave differently due to slight differences in their Moral hierarchy, and also due to their leanings towards Ethics or Morality (Law or "Chaos"). I like your terminology of an "Ethical shortcut" around Morality, which is precisely what it is, but I didn't mean to say that lawful folks are just looking for easy outs. Actually, I would think that dumfucks look for the easy out, and more thoughtful people tend to be more worried about Morality than Ethics, as a general rule. This is where maybe the framework breaks down a bit because the Value "follow the rules" isn't really a value, it's an Ethic, which makes it kind of circular and I honestly can't find any Value in my own thinking that would support Ethics over Morals. And yet there definitely are people that will do things they admit are "wrong" because they believe you've got to follow the rules... hmm....

Differently put, what constitutes the "illusion" of morality for characters? Why is it different for some vs. others? I would hope that it can be kind of recursive within the Values and Morality hierarchy, but I'm not sure it can.

Finally, to tip my personal hand a bit, and to kick-start thinking on the "illusion" question, I'll point out that most of your analysis assumes rational behavior. In my experience most folks are not even partially rational, much less completely rational. Many would think of this as not even consulting your Morals or Ethics and acting on pure whim. I personally view this has having a Morality hierarchy out of synch with reality, with big holes in it and contradictions everywhere, and then truly taking the "shortcut" of not wanting to focus on decisions. If one's system has 3 different "right" outcomes (not just in terms of applicable Ethical rules, but of actual Morality balancing), then just taking the first one that pops into your head is preferable to taking the time to re-construct your Morality hierarchy so that there is only 1 possible "right" outcome. That's a real bitch of an undertaking.
 

stargelman

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I'm deeply astonished. Such an elaborate piece, and nowhere even a mention of INTEGRITY. You'd think that had some small relevance here. I can have all the ethics and values in the world, I can believe all the right things and I'm still a bad person if I abandon all those values and ethics at the first opportunity because they become inconvenient.

In fact that should probably be the main difference between a "lawful" character and everyone else. Everyone has values, but a lawful character clings to them no matter what, even at the cost of their life, while everyone else to a varying degree is ready to abandon their values when it is opportune.
 

galsiah

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stargelman said:
...because they become inconvenient.
What does that mean? All your values can't simultaneously "become inconvenient", since they'd have nothing to inconvenience. Integrity is simply a preference for some values over others. Abandoning all values is impossible.

Everyone has values, but a lawful character clings to them no matter what, even at the cost of their life...
I don't think that's a useful description of "lawful" (even if it did make sense). It probably is a reasonable description of the outlook of a Paladin - but a Paladin is certainly not a run-of-the-mill lawful guy. [the reason it doesn't make sense is that preserving one's life is a value too - most people rate that more highly than almost any other value; a Paladin probably doesn't.]

AnalogKid said:
I'll point out that most of your analysis assumes rational behavior.
It involves behaving according to internal rules, but they needn't be conscious rules. The most flighty, silly, thoughtless, ignorant person behaves according to rules in the sense that their brain follows "rational" rules.
When I said at the end of my post that "everyone would be acting to maximize their own perception of their morality", I was aiming to clarify that I didn't require it to be a consciously rational process. People act that way, but they probably don't (consciously) think that way. Since we're usually concerned with modelling action, not thought, that's ok.

[Also, note that taking time to think over the morality of an action has its own value implications - e.g. "don't waste time", "live for the moment".... Avoiding lengthy rational thought on an issue can be a rational action given some sets of values.]
 

fastpunk

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AnalogKid said:
- "good" and "evil" are mostly unimportant. They are an attempt to categorize all possible sets of values and all possible arrangements of the value hierarchy into only two groups. That's pretty limiting. However, it can be useful for game purposes because one can define "good" as "consistent with my morality" and "evil" as "at odds with my morality". This lets different groups have different views of good and evil, even if they sometimes agree on what's good and evil.

Yes, I agree!!! This is what I dislike about modern RPGs. Dealing in such absolutes, in 0 and 1, in black and white is pretty limiting. Now if game developers would realize this, games would actually be morally challenging, or at least a bit more then they are... oft times good and evil are not transparent and easy to identify... not to mention each person's point of view.
 

stargelman

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galsiah said:
stargelman said:
...because they become inconvenient.
What does that mean? All your values can't simultaneously "become inconvenient", since they'd have nothing to inconvenience. Integrity is simply a preference for some values over others. Abandoning all values is impossible.
:roll:

Obviously I didn't mean all simultaneously. Of course it's a selective process. Duh!

galsiah said:
Everyone has values, but a lawful character clings to them no matter what, even at the cost of their life...
I don't think that's a useful description of "lawful" (even if it did make sense). It probably is a reasonable description of the outlook of a Paladin - but a Paladin is certainly not a run-of-the-mill lawful guy. [the reason it doesn't make sense is that preserving one's life is a value too - most people rate that more highly than almost any other value; a Paladin probably doesn't.]

Self-preservation is an instinct, not a value. Self-sacrifice is a value. And yes, the example given was an extreme one, to illustrate a point. I thought that was obvious.

Almost everyone, total sociopaths excluded, has values, virtues, moral standards that include things like don't kill, don't steal, don't lie etc, your basic golden rule material. Everyone knows that it's bad/wrong/evil to do those things, but some do them anyway. Why? Because they ignore their own values, because they tell themselves they have no choice, or because they're driven by emotions of hate, greed or whatever. What makes a person a rotten person is doing what they know is wrong.

IMHO the really interesting conflicts develop from conflict of values. Take the character of Londo Mollari from Babylon 5 for instance.

Edit: I should also mention I'm not found of the D&D terminology and ideas behind them. If I were to create an RPG I wouldn't use terms like "lawful" or "chaotic", obviously. I'd use terms matching what I just described.
 

Human Shield

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galsiah said:
That's fair enough, but as I said in the "right vs right" thread, it's not all you need to do. A believable society needs a believable history (whether or not it's presented explicitly in game). It's not enough that the morality/ethics/values... make sense as a system - their evolution into that system needs to make sense too.
That's "evolution" certainly in an "evolution of society" sense, and usually in a "biological evolution of the individuals" sense too.

If you're dealing with pretty standard human morality/ethics, it's probably not necessary to go overboard with the history. If a major interest of the setting is in some very significant moral/ethical differences, it is necessary. Such an alien system isn't going to seem credible without presenting (implicitly or explicitly) the context/history that led to its formation.

Why is that important to gameplay? Explanations for some cultures on Earth don't make much sense, and sometimes it only took one person. Players don't need background to make decisions.

If you really want to explore moral choices you need to tie it into the game system. System guides behavior and produces real trade off, without a system moral choices become perfence settings and the player gets to play out his character "the right way". A meta system for morality can challenge the player directly with choices instead of playing through presets. Many P&P systems do this but no CRPG has attempted it, you can see more info here.

A lot of times Gray turns out to be mean dull, you still need characters that feel strongly about things. Characters are agents that are used to explore premise and create a theme.
 

AnalogKid

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stargelman said:
Self-preservation is an instinct, not a value. Self-sacrifice is a value. And yes, the example given was an extreme one, to illustrate a point. I thought that was obvious.
Just a quick drive-by because I'm at work, but I'll point out that Life, more specifically "My Life" is the root of all Values, as I see it. According to my simple definition: A Value is something one acts to acquire or keep. Without the possibility of losing life, no other values would exist or be meaningful to anyone. Self-Sacrifice (a possible Virtue, not Value) is an evil absurdity, imo. If you trade some Values to gain other Values (like self-respect, for example), that's not sacrifice. Pure sacrifice as a principle leads to death and misery for everyone. I'm not trying to prove it (nor will I), but I'm just trying to point out that many people (myself as one concrete example) don't think they're doing something "wrong" in the situations where you (apparently) and most of the world DO think so. Of course there are conflicts, and most actions violate some Value, so in that limited sense they know they're partially "wrong", but it's always a balancing act to arrive at the net result which is most moral (not just most convenient).

Shit, I didn't want to get into the content of particular systems. But "self-sacrifice" as a Virtue doesn't make structural sense, if looked at properly. If people like it, more power to them, I'm just trying to highlight the concept of Value conflicts and trade-offs and show that most peoples' ideas about "sacrifice" are really equivalent to trading one Value for others.

I also think that lawful people are focused on LAWS (i.e. Ethics), and not MORALS. People that stand by their Morals in the face of all consequence are principled idealists, not necessarily "Lawful". This can be good or bad, depending on the specific example: Buddhist monks who burn themselves to death in protest, Christian Scientists that die from simple diseases while refusing to get medical help, Extremists that kill those who don't think like them.

I'll take up the issue of integrity later (I think it ties in to the illusion of morality idea).
 

galsiah

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stargelman said:
Self-preservation is an instinct, not a value. Self-sacrifice is a value.
They're both values in the system AnalogKid outlined. It doesn't matter whether you think they're "really" values - they're values in this (incorrect) model that we're talking about.

Again, I'd point out that the usual practical purpose - in games at least - is to model behaviour, not thought. It doesn't matter whether people/characters consciously think about each value - all that matters is that their actions reflect some set of values. If you want to model behaviour, you need a model for instincts, as well as all other conscious and unconscious values/morals - I don't see the point in drawing a line between them. What does it get you? How does your simulation benefit from the division? Can you predict actions more reasonably with that division?
Feel free to come up with good answers. If you can explain in specific terms what you'd gain, that'd be useful.

Almost everyone, total sociopaths excluded, has values, virtues, moral standards that include things like don't kill, don't steal, don't lie etc, your basic golden rule material. Everyone knows that it's bad/wrong/evil to do those things, but some do them anyway. Why? Because they ignore their own values, because they tell themselves they have no choice, or because they're driven by emotions of hate, greed or whatever. What makes a person a rotten person is doing what they know is wrong.
In AnalogKid's system, as I understand it, all these vices are values too (or consequences of values). It's not a question of ignoring values in favour of something else - it's always simply a prioritization of values (some of which might be considered bad/evil/immoral..., or to have bad/evil/immoral consequences).
If someone knows something is ultimately "wrong" in every sense, he wouldn't choose to do it. In fact, almost nothing ever is - it's right in some ways, and wrong in others. What someone consciously considers "wrong" is quite often tied in to societies expectations (ethics, if you like). When someone chooses to do something, it is in some sense "right" by definition - with respect to his values (in AnalogKid's system). What people are judging is those values.

Again, "values" are being used here in a more general sense than is usually the case. So if something is "right" (/"wrong") to the extent that it agrees with (/conflicts with) a character's "values", then "right" and "wrong" don't have their usual meaning.

IMHO the really interesting conflicts develop from conflict of values. Take the character of Londo Mollari from Babylon 5 for instance.
Sure - but you're using "values" in it's more common, narrower sense there. In this system, I guess you could call those values the ones a character consciously follows as an end in themselves. [I'd say that most values are not conscious, and that most goals consciously pursued are not themselves values.]
Those are the most interesting, because they're played out consciously, and are fairly direct ideological conflicts. Most conflicts between two courses of action that are considered "right", aren't direct, conscious, value conflicts - so they're much vaguer and more uncertain. With direct, conscious value conflicts, there's clarity and certainty in the choice between values, which means that the values themselves need to be examined, rather than the vagaries of the situation. That's both rare and important for a character - so it's interesting to watch.

However, with AnalogKid's system's notion of "values", all you need to do to create greedy/evil/hateful character, is to furnish him with appropriately prioritized values. He'll do things that he knows are wrong (by most people's standards, and possibly his own conscious standards) because they are "right" according to his values.
[e.g. given a stronger preference for immediate individual pleasure than for most important non-selfish ends, a character might sit around doing drugs rather than helping someone out - according to his values, that's "right". He probably knows that he *shouldn't* have those values - society tells him so...- but he does nonetheless. He is "wrong" / lazy / "immoral" by virtue of the values he holds - not because he doesn't follow them. Generally speaking, characters would have a negative opinion of values that help only the individual, and a positive opinion of values that help society.]

Note also that "good" / "moral" people/characters tend to have a very high weighting towards upholding present values - at the likely expense of future values. This is often considered good because most people understand it and do it, and it's not a policy which often leads to horrific consequences (though it can).

However, consider what happens when a character has the ability to plan ahead, and doesn't highly prioritize immediate value gain over long term value gain. Such a character might quite happily slaughter a few innocent people to get e.g. a load of money to save thousands of innocents much later. Such a character will probably be viewed as "evil" after he slaughters the few innocents - even if a "good" person in the same situation would actually cause more innocent deaths in the long term.

Judging a character's actions is a particularly dodgy enterprise because the judge doesn't know the entire motivation behind them (i.e. the character's values). A character might do something "wrong" in the short term, either because he has undesirable values (i.e. is "TEH EVIL") from society's point of view, or because he has some plan involving future value fulfilment.



Why is that important to gameplay?
It's important where you're aiming to present a coherent world.
Explanations for some cultures on Earth don't make much sense
Perhaps, but the historical facts do make sense - all that's limited is our knowledge/understanding of them. In a game world, there's no similar guarantee that it all makes sense once you understand things. If all you're doing is having a society that's e.g. like ours, only more violent, that's fine - it's simple for a player to see how such a society might develop.
It's when you're presenting a more alien set of morals/ethics that you need more context. The context both helps to keep things coherent, and helps the player to make reasonable predictions without being specifically given information.

Players don't need background to make decisions.
Sometimes they might. Players need some degree of context/background to make any decision. They'll need more if they can't rely on their usual expectations of human nature etc. Bear in mind that I'm not talking about a background added in for the sake of it. I'm talking about a background constructed with the game to explain and motivate the workings of society, the motivations and expectations of factions, the outlook/morality of inhabitants....
Of course you don't need all that when everything is the same as in the real world, here and now. You don't when the situation is very similar to our own (though it might help) - e.g. medieval/Roman/tribal setting. When you're reinventing human nature from the ground up, you do.
 

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