Posts filed under ‘Ephemera’
| Peter Klein |
No doubt you’ve heard about Walter Palmer, the American dentist who shot the lion, “Cecil,” in Zimbabwe, pushing aside Sir Tim Hunt as the Internet’s Most Hated Person. (Aside from calling Palmer cruel and depraved — even wishing his death by bow and arrow — some are labeling him a sociopath, which makes me wonder, are lions now considered members of society? Orgheads?)
I don’t hunt and have no particular emotional attachment to lions, so I find the outrage level bewildering. However, I think this can be a teachable moment. Specifically, there are lessons here about trophy hunting and endangered species. Not surprisingly to anyone who has studied property-rights economics, there is evidence that allowing trophy hunting is a good means of protecting endangered species. This is a version of the general argument that defining and enforcing property rights in scarce resources, including wildlife, provides incentives for individuals to protect and maintain those resources. (You’ve probably heard the quip that the world isn’t running out of chickens and dairy cattle.) Groups like PERC have produce dozens of studies on endangered species and private conservation more generally and there are plenty of nerdier papers too. If Cecil’s unfortunate end helps stimulate thoughtful discussion on how to avoid the tragedy of the commons, then he will not have died in vain.
| Peter Klein |
This may be the most useful document ever produced by a government agency:
| Peter Klein |
It’s been another fine year for O&M, with over 100,000 unique visitors from Albania to Zimbabwe and about every country in-between. Our pageviews are down from 2006, the year we started this blog, but nowadays many people read our posts through Facebook or other syndication and sharing sites, so our actual reach is much larger.
Here are the most viewed posts written in the last year:
- What are “Transaction Costs” Anyway?
- Notes on Inequality
- Gary Becker: A Personal Appreciation
- It’s the Economics that Got Small
- Rich Makadok on Formal Modeling and Firm Strategy
- The Piketty Code
- Gary S. Becker, 1930-2014
- Is Human Capital Theory Compatible with the Strategy Literature?
- Cheating and Public Service
- The Soft Underbelly of Business Model Innovation
- More Skepticism of Behavioral Social Science
- Theories of the Firm
- The Theory of Mind in Agency Theory
- Academics and Social Media
- The New Empirical Economics of Management
Thanks to our readers and commentators for a great 2014. We are looking forward to 2015!
| Lasse Lien |
I strongly think this paper is both timely and useful.
| Nicolai Foss |
It doesn’t seem to have made its way to the Austrian blogs, but Peter and I just won the Society for the Development of Austrian Economics/Foundation of Economic Education Award for Best Book in Austrian Economics. Specifically, we received the Award for Organizing Entrepreneurial Judgment: A New Approach to the Firm. (Here is Peter and me presenting the book back in 2012). In addition, the book has picked up some cites and has sold quite well. Thus, we can hardly claim that it “fell still-born from the press.” Yet, it could be more influential and could sell better. You know what to do.
| Nicolai Foss |
Frequent readers of this blog will know that we (well, some more than others [ahem]) tend to obsess about the proper conceptualization of entrepreneurship, such as whether “opportunity” is a useful construct in the context of entrepreneurship research, and whether this, heavily expanding, research field is best off by thinking of entrepreneurship in terms of “opportunity discovery.” In this brief essay, just published in Strategic Organization, Dr. Jacob Lyngsie (Dept of Strategic Management and Globalization, Copenahgen Business School) and I discuss how the emphasis on opportunity discovery in the literature is accompanied by a neglect of entrepreneurship in the established firm and a tendency to think of entrepreneurs as individuals (rather than teams) (similar themes are discussed in the recent Foss and Klein volume, Organizing Entrepreneurial Judgment). We call for a research effort that systematically deal with how entrepreneurial established firms organize a division of entrepreneurial labor, and on how administrative machinery can be deployed inside firms to foster the motivation, opportunity and ability that drive entrepreneurial behaviors.
| Dick Langlois |
I was trying to avoid jumping into the fray about Capital in the Twenty-First Century so as not to participate in the mania, as if throwing one more tiny ember into a wildfire would cause measurable additional damage. But I couldn’t resist after seeing an article entitled “How Thomas Piketty Explains American Sports.” Written by someone called Kevin Lincoln in a left-wing mag called Pacific Standard, the article discusses the NBA’s proposal to raise the minimum roster age from 19 to 20, thus reducing the number of one-and-done college players and depriving John Calipari of his livelihood. (Did I forget to mention that UConn won both men’s and women’s national championships this year?) Lincoln correctly points out that such a change is in the interest not only of the D-1 colleges, who get to keep their stars longer, but also of the NBA, since it offloads more player development to the colleges. Sounds perfectly reasonable – exactly the kind of analysis you would expect from, say, a free-market public-choice economist. What on earth does this have to do with Piketty?
The concept of “over-accumulation” was coined by economist David Hershey, and with the ascent of Thomas Piketty’s Capital in the Twenty-First Century into bestsellerdom, it’s something that anyone with even a passing interest in economics is probably familiar with. In our current economy, actors who have gathered large amounts of capital tend to invest it in the creation of further capital for themselves rather than funneling it back into production. In turn, the economy stagnates, with the world’s financial resources concentrating in the hands of the rich with no money left over to raise wages for the working class.
Yes, this scheme will probably raise the wealth (a little) of NBA owners. But it doesn’t have anything to do with the accumulation of capital. For both owners and players, the NBA is all about people getting wealthy from entrepreneurial insight and scarce valuable skills — exactly contrary to Piketty’s predictions.
The author is obviously economically illiterate — how exactly can people “create further capital for themselves” without somehow “funneling it back into production”? Yet the fact that someone smart enough to write a free-lance article would connect the NBA to Piketty speaks, it seems to me, to what the Piketty phenomenon is all about. In my view, we should not be comparing Piketty with Marx or Keynes. We should be comparing him with Dan Brown. Like the Da Vinci Code, Capital is an otherwise unremarkable book that managed to put together a volatile mix of elements. Both books captured some kind of zeitgeist, of course, but they did so in a remarkably precise way. They rely on similar elements: a theory of how the world works that doesn’t stand up to minimal scrutiny but is easy to understand, seems to explain the mysterious and ineffable, and, most importantly, confirms the gut prejudices of its readers. Capital is not as much a conspiracy theory as the Da Vinci Code; it’s a nineteenth-century story about aggregate income shares. But it is also an empty-enough vessel into which readers (especially those who haven’t actually read it) can pour their own conspiracy theories. The NBA is the Opus Dei of capitalist sports.
While we’re on the subject, I also want to mention that, to my mild surprise, the best review of Piketty I have run across is by Larry Summers. He gathers together all the technical criticisms in many other reviews and then adds a few of his own. While he pats Piketty on the back for his wonderful interest in inequality, he leaves the theoretical claims in a tattered pile on the floor.