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Normative individualism appears to be an obvious normative premise underlying a liberal conception of the desirable social order. The shortcomings of some common Interpretations of this premise are discussed and a more consistent as well as a more workable standard for assessing the ‘goodness’ of alternative socio-institutional arrangements is specified. With such an Interpretation of normative individualism, a contractrarian conception as advocated by J.M. Buchanan can be viewed as a systematic extension of classical liberalism.

Individual Choice and Institutional Constraints: The Normative Element in Classical and Contractarian Liberalism