Posts filed under ‘Institutions’

Benefits of Academic Blogging

| Peter Klein |

I sometimes worry that the blog format is being displaced by Facebook, Twitter, and similar platforms, but Patrick Dunleavy from the LSE Impact of Social Science Blog remains a fan of academic blogs, particularly focused group blogs like, ahem, O&M. Patrick argues that blogging (supported by academic tweeting) is “quick to do in real time”; “communicates bottom-line results and ‘take aways’ in clear language, yet with due regard to methods issues and quality of evidence”; helps “create multi-disciplinary understanding and the joining-up of previously siloed knowledge”; “creates a vastly enlarged foundation for the development of ‘bridging’ academics, with real inter-disciplinary competences”; and “can also support in a novel and stimulating way the traditional role of a university as an agent of ‘local integration’ across multiple disciplines.”

Patrick also usefully distinguishes between solo blogs, collaborative or group blogs (like O&M), and multi-author blogs (professionally edited and produced, purely academic). O&M is partly academic, partly personal, but we have largely the same objectives as those outlined in Patrick’s post.

See also our recent discussion of academics and social media.

(HT: REW)

30 January 2015 at 11:39 am 1 comment

On Classifying Academic Research

| Peter Klein |

Should academic work be classified primarily by discipline, or by problem? Within disciplines, do we start with theory versus application, micro versus macro, historical versus contemporary, or something else? Of course, there may be no single “optimal” classification scheme, but how we think about organizing research in our field says something about how we view the nature, contributions, and problems in the field.

There’s a very interesting discussion of this subject in the History of Economics Playground blog, focusing on the evolution of the Journal of Economic Literature codes used by economists (parts 1, 2, and 3). I particularly liked Beatrice Cherrier’s analysis of the AEA’s decision to drop “theory” as a separate category. The MachlupHutchisonRothbard exchange helps establish the context.

[T]he seemingly administrative task of devising new categories threw AEA officials, in particular AER editor Bernard Haley and former AER interim editor Fritz Machlup, into heated debates over the nature and relationships of theoretical and empirical work.

Machlup campaigned for a separate “Abstract Economic Theory” top category. At the time of the revision, he was engaged in methodological work, striving to find a third way between Terence Hutchison’s “ultraempiricism,” and the “extreme a priorism” of his former mentor, Ludwig Von Mises (see Blaug, ch.4). He believed it was possible to differentiate between “fundamental (heuristic) hypotheses, which are not independently testable,” and “specific (factual) assumptions, which are supposed to correspond to observed facts or conditions.” The former was found in Keynes’s General Theory, and the latter in his Treatise on Money, Machlup explained. He thus proposed that empirical analysis be classified independently, under two categories: “Quantitative Research Techniques” and “Social Accounting, Measurements, and Numerical Hypotheses” (e.g., census data, expenditure surveys, input-output matrices, etc.). On the contrary, Haley wanted every category to cover the theoretical and empirical work related to a given subject matter. In his view, separating them was impossible, even meaningless: “Is there any theory that is not abstract? And, for that matter, is there any economic theory worth its salt that is not applied,” he teased Machlup. Also, he wanted to avoid the idea that “class 1 is theory, the rest are applied … How about monetary theory, international trade theory, business cycle theory?” He accordingly designed the top category to encompass price theory, but also statistical demand analysis, as well as “both theoretical and empirical studies of, e.g., the consumption function [and] economic growth models of the Harrod-Domar variety,” among other subjects.  He eschewed any “theory” heading, which he replaced with titles such as  “Price system; National Income Analysis.” His scheme eventually prevailed, but “theory” was reinstated in the title of the contentious category.

9 December 2014 at 2:35 pm 1 comment

Two Interesting NBER Papers

| Peter Klein |

A couple of recent NBER papers of interest to O&Mers, one from Doug Irwin, another from Luis Garicano and Esteban Rossi-Hansberg:

Adam Smith’s “Tolerable Administration of Justice” and the Wealth of Nations
Douglas A. Irwin
NBER Working Paper No. 20636, October 2014

In the Wealth of Nations, Adam Smith argues that a country’s national income depends on its labor productivity, which in turn hinges on the division of labor. But why are some countries able to take advantage of the division of labor and become rich, while others fail to do so and remain poor? Smith’s answer, in an important but neglected theme of his work, is the security of property rights that enable individuals to “secure the fruits of their own labor” and allow the division of labor to occur. Countries that can establish a “tolerable administration of justice” to secure property rights and allow investment and exchange to take place will see economic progress take place. Smith’s emphasis on a country’s “institutions” in determining its relative income has been supported by recent empirical work on economic development.

Knowledge-based Hierarchies: Using Organizations to Understand the Economy
Luis Garicano, Esteban Rossi-Hansberg
NBER Working Paper No. 20607, October 2014

We argue that incorporating the decision of how to organize the acquisition, use, and communication of knowledge into economic models is essential to understand a wide variety of economic phenomena. We survey the literature that has used knowledge-based hierarchies to study issues like the evolution of wage inequality, the growth and productivity of firms, economic development, the gains from international trade, as well as offshoring and the formation of international production teams, among many others. We also review the nascent empirical literature that has, so far, confirmed the importance of organizational decisions and many of its more salient implications.

Update: See also Irwin’s article in Monday’s WSJ: “The Ultimate Global Antipoverty Program.”

3 November 2014 at 12:45 pm Leave a comment

SMS Special Conference, “From Local Voids to Local Goods: Can Institutions Promote Competitive Advantage?”

| Peter Klein |

Please consider submitting a proposal to the upcoming SMS Special Conference in Santiago, Chile, 19-21 March 2015, on the theme “From Local Voids to Local Goods: Can Institutions Promote Competitive Advantage?” Here’s the description:

A recent stream of strategy research has examined how institutional voids pose fundamental challenges for industrial development in emerging markets, which bring detrimental effects to the competitiveness of local firms. Yet, in many countries, policymakers, to various degrees and levels, have adopted a rather positive agenda, to try and foster local firms through the provision of public resources, such as investments in infrastructure, specialized industrial policies, as well as knowledge-generation systems. Concomitantly, firms themselves have pursued collective synergies that individual firms alone would be able to attain. In sum, strategies embedded in the local environment may promote rather than limit competitive advantage. To advance this discussion, we are gathering a group of established scholars and practitioners in Santiago, one of the most modern Latin American cities. Chile is also well known for its distinctive institutional reforms, which promote a thriving business climate. The Conference will thus offer a unique opportunity to discuss how firms and institutions interact to spur entrepreneurship and development.

I am chairing the track on “Institutions and Local Entrepreneurship,” and looking for papers dealing broadly with the relationships among legal, political, and social institutions, entrepreneurship (broadly defined), public policy, and economic performance. I would love to see submissions from O&Mers. The submission deadline (extended abstract, not full paper) is 15 October 2014, just around the corner. Let me know if you have any questions.

3 October 2014 at 11:08 am Leave a comment

The WINIR Greenwich Conference

| Dick Langlois |

I write on the flight back from the inaugural conference of the World Interdisciplinary Network for Institutional Research (WINIR), which met on the Prime Meridian these last few days. The conference was a great success, not only for its wonderful location in the Old Royal Naval College astride the Cutty Sark but also for the overall quality of the organization and the presentations.

As I have mentioned before, WINIR was created to encourage institutional research from a wide range of perspectives and disciplines. The annual conference institutionalizes this (you might say) by having keynote speakers from five different disciplines. The political scientist was Kathleen Thelen from MIT, one of my fellow editors on the Journal of Institutional Economics; the legal scholar was Katharina Pistor from Columbia; and the sociologist was Geoffrey Ingham from Cambridge, who made some interesting observations about Chinese institutions in the context of the “great divergence” debate in economic history. Serious and well-known scholars all. The economist was Timur Kuran, who updated us on his fascinating work on the economics of the pre-nineteenth-century Islamic waqf. But the most interesting – or at any rate most surprising – keynote was the philosopher Barry Smith from Buffalo, whom some of you may have heard of for his early work on the philosophy of Austrian economics. Smith’s talk was about “ontology,” which in my ignorance I had expected to be an hour of head-breaking essentialism. It turns out that “ontology” now means the practice of classification – giving things the right names and putting them in the right boxes. As much computer science as philosophy, it seemed to me. The main applications are in databases and sciences more generally, including things like Department of Defense databases and Human Genome data. Smith is a world-leading practitioner of this kind of ontology, having founded something called the National Center for Ontological Research. (I must confess that the first thing that popped into my mind when I heard this title was the High-Energy Magic Building at Terry Pratchett’s Unseen University.) Basically, ontology appears to be about modularization and standardization, something quite fitting to talk about in the shadow of the Royal Greenwich Observatory. I discovered that Smith was unaware of the modularity literature, so I plan to send him some references.

Many of the parallel sessions were also of high quality. I could attend only a fraction of them (what with sneaking out to visit the longitude exhibit at the National Maritime Museum). But let me plug a couple of papers by my friends. Giampaolo Garzarelli and Lyndal Keeton modeled “internal exit” in pre-colonial Southern Africa, the fissioning off of subtribal groups to found new polities. (I was impressed with the quality of that entire session.) As I was chairing a competing session later, I missed Roger Koppl and Caryn Devin talking about their paper “Against Design,” written with Stuart Kauffman and Teppo Felin. A version of that collaboration will appear in JOIE as a target article with solicited comments. (more…)

15 September 2014 at 12:41 pm 1 comment

Microeconomics of Central Banking

| Peter Klein |

I have a chapter in a new book edited by David Howden and Joseph Salerno, The Fed at One Hundred: A Critical View on the Federal Reserve System (New York: Springer, 2014). My chapter is called “Information, Incentives, and Organization: The Microeconomics of Central Banking,” and builds upon themes discussed many times on this blog, such as Fed independence. Here is a SSRN version of the chapter. The book comes out next month but you can pre-order at the Amazon link above.

2 August 2014 at 8:42 am 2 comments

Competition in Early Telephone Networks

| Peter Klein |

As with other technologies involving network effects, the early telephone industry featured competing, geographically overlapping networks. Robert MacDougall provides a fascinating history of this period in The People’s Network: The Political Economy of the Telephone in the Gilded Age (University of Pennsylvania Press, 2013). From the book blurb:

In the decades around 1900, ordinary citizens—farmers, doctors, small-town entrepreneurs—established tens of thousands of independent telephone systems, stringing their own wires to bring this new technology to the people. Managed by opportunists and idealists alike, these small businesses were motivated not only by profit but also by the promise of open communication as a weapon against monopoly capital and for protection of regional autonomy. As the Bell empire grew, independents fought fiercely to retain control of their local networks and companies—a struggle with an emerging corporate giant that has been almost entirely forgotten.

David Hochfelder wrote a thoughtful review which appeared today on EH.Net. As Hochfelder points out, the history of the telephone is not just about technology and market structure, but broader social themes as well:

At one level, this is a story about industrial competition. At a deeper level, it reveals competing visions of an important technology, the social role that it ought to play. MacDougall shows that the Bell System and the Independents envisioned the telephone in far different ways. Bell, especially under Theodore Vail, president of AT&T between 1907 and 1919, sought to build a unified telecommunications network that spanned the United States. Bell Canada espoused a different vision, that the telephone ought to remain an expensive urban medium primarily used for business purposes. Both Bell systems shared the ideology that the telephone industry ought to be controlled by centralized, national corporations. On the other hand, the Independents described the Bell System as a grasping octopus that wanted a stranglehold over the nation’s communications. The Independents offered instead a vision of the telephone as a people’s network that enhanced local ties and preserved community autonomy. In the United States, MacDougall claims that the Independents’ vision for the telephone “descended from a civic understanding of communication that went back to the American Revolution,” that “free and open communications were a basic ingredient of democracy” (p. 5). On a more mundane level, the Independents encouraged social uses of the telephone — like gossiping and banjo-playing — that the Bell System actively discouraged at the time.

18 July 2014 at 6:38 pm Leave a comment

Foss and Klein Interview on Entrepreneurial Judgment

| Peter Klein |

Nicolai and I are interviewed by Angel Martin for the Spanish-language site sintetia. An English-language version is here. We wax eloquent on entrepreneurship theory, research, teaching, policy, and more. Personally, I think I sound more profound in Spanish, but that’s probably because I can’t read Spanish.

9 July 2014 at 2:55 pm Leave a comment

The Origin of Social Norms

| Peter Klein |

Some findings that would not have surprised Carl Menger:

Ode to the sea: Workplace Organizations and Norms of Cooperation
Uri Gneezy, Andreas Leibbrandt, John A. List
NBER Working Paper No. 20234, June 2014

The functioning and well-being of any society and organization critically hinges on norms of cooperation that regulate social activities. Empirical evidence on how such norms emerge and in which environments they thrive remains a clear void in the literature. To provide an initial set of insights, we overlay a set of field experiments in a natural setting. Our approach is to compare behavior in Brazilian fishermen societies that differ along one major dimension: the workplace organization. In one society (located by the sea) fishermen are forced to work in groups whereas in the adjacent society (located on a lake) fishing is inherently an individual activity. We report sharp evidence that the sea fishermen trust and cooperate more and have greater ability to coordinate group actions than their lake fishermen counterparts. These findings are consistent with the argument that people internalize social norms that emerge from specific needs and support the idea that socio-ecological factors play a decisive role in the proliferation of pro-social behaviors.

I await comments below about how social norms emerge and persist not because they facilitate cooperation and joint gains, but because they legitimize existing social structures or support exploitation or power or. . . .

23 June 2014 at 2:43 pm 5 comments

New ISNIE Awards

| Peter Klein |

images (4)The International Society for New Institutional Economics has established four new awards, named after the pioneers of new institutional social science: the Ronald Coase Best Dissertation Award, Oliver Williamson Best Conference Paper Award, Douglass North Best Paper or Book Award, and Elinor Ostrom Lifetime Achievement Award. Details on the awards, and a call for nominations for the Coase, North, and Ostrom awards, are on the ISNIE site. (Sadly, my suggestion for a Best Organizational and Institutional Economics Blog Award was not heeded.)

8 April 2014 at 8:55 am Leave a comment

Contracts as Technology

| Peter Klein |

That’s the title of an interesting new law review article by Kevin Davis (New York University Law Review, April 2013). Just as we can treat organizational structure as as sort of technology, and study the introduction and diffusion of new organizational forms with the same theories and methods used to study technological innovation and diffusion, we can think of contracts as structures or institutions that emerge, are subject to experimentation and competition, and evolve and diffuse. Here’s the abstract:

If technology means, “useful knowledge about how to produce things at low cost”, then contracts should qualify. Just as mechanical technologies are embodied in blueprints, technologies of contracting are embodied in contractual documents that serve as, “blueprints for collaboration”. This Article analyzes innovations in contractual documents using the same kind of framework that is used to analyze other kinds of technological innovation. The analysis begins by laying out an informal model of the demand for and supply of innovative contractual documents. The discussion of demand emphasizes the impact of innovations upon not only each party’s incentives to collaborate efficiently, but also upon reading costs and litigation costs. The analysis of supply considers both the generation and dissemination of innovations and emphasizes the importance of cumulative innovation, learning by-doing, economies of scale and scope, and trustworthiness. Recent literature has raised concerns about the extent to which law firms produce contractual innovations. In fact, a wide range of actors other than law firms supply contractual documents; including end users of contracts, specialized providers of legal documents, legal database firms, trade associations, and academic institutions. This article discusses the incentives and capabilities of each of these potential sources of innovation. It concludes by discussing potential interventions such as: (1) enhancing intellectual property rights, (2) relaxing rules concerning the unauthorized practice of law and, (3) creating or expanding publicly sponsored clearinghouses for contracts.

See also Lisa Berstein’s comment. (HT: Geoff Manne)

17 March 2014 at 3:49 pm 1 comment

WINIR Conference in Greenwich: Deadline Approaching

| Dick Langlois |

February 28 is the deadline for submitting an abstract to the first conference of the World Interdisciplinary Network for Institutional Research (WINIR), which will take place 11-14 September 2014 at the Old Royal Naval College, Greenwich. Keynote speakers include Timur Kuran. Information and abstract submission at the WINIR website.

25 February 2014 at 10:21 am Leave a comment

Cheating and Public Service

| Dick Langlois |

Everyone knows that people who want to go into government jobs have high pro-social preferences and impeccable honesty. Well, not so in India, according to Rema Hanna from the Kennedy School at Harvard, who spoke in our department seminar series Friday. Here is the abstract:

In this paper, we demonstrate that university students who cheat on a simple task in a laboratory setting are more likely to state a preference for entering public service. Importantly, we also show that cheating on this task is predictive of corrupt behavior by real government workers, implying that this measure captures a meaningful propensity towards corruption. Students who demonstrate lower levels of prosocial preferences in the laboratory games are also more likely to prefer to enter the government, while outcomes on explicit, two-player games to measure cheating and attitudinal measures of corruption do not systematically predict job preferences. We find that a screening process that chooses the highest ability applicants would not alter the average propensity for corruption among the applicant pool. Our findings imply that differential selection into government may contribute, in part, to corruption. They also emphasize that screening characteristics other than ability may be useful in reducing corruption, but caution that more explicit measures may offer little predictive power.

I wonder what her colleagues at the Kennedy School think of this. Ask not what you can do for your country; ask what your country can do for you.

24 February 2014 at 6:09 pm 3 comments

CFP: Coase Memorial Issue of Man and the Economy

| Peter Klein |

An important announcement from Ning Wang, editor of Man and the Economy:

Man and the Economy
Call for Papers for a Special Issue in Memory of Ronald Coase

“R. H. Coase: The Man and His Ideas”

Man and the Economy will devote a special issue (December 2014) to the life and ideas of Ronald Coase, the 1991 Nobel Laureate in Economics and Founding Editor of this journal. During his long academic life, Coase devoted himself to economics, which, in his view, should investigate how the real world economy works, with all its imperfections. Coase viewed and practiced economics as a social science, a study of man creating wealth in society through various institutional arrangements. To honor the memory of Coase, we welcome original research articles that extend and develop the Coasian economics, including empirical studies of the structure of production and exchange. We also welcome critical and constructive commentaries that clarify and elaborate the Coasian themes, from a law-and-economics/new institutional economics perspective, which include, but not limited to, topics on transaction costs, property rights, theories of the firm and China’s economic transformation. In addition, we also welcome personal reflections and reminiscences of Coase as a colleague, a teacher, an editor, and/or a friend.

Submissions must be made online via the Journal’s website: http://www.degruyter.com/view/j/me

Deadline for submissions is September 30, 2014.

12 February 2014 at 8:51 am Leave a comment

Disruptive Innovation and Job-Market Signaling

| Peter Klein |

The job-market value of education, as famously argued by Michael Spence (1974), derives from two sources: additions to human capital and signaling. By going to college, you learn some useful skills, but you also demonstrate to potential employers that you have the natural ability to earn a degree. Depending on the difficulty of obtaining a degree for students of varying abilities, a college degree may be valuable even if you don’t learn a thing — you distinguish yourself from those who weren’t clever or patient enough to jump through the necessary hoops.

Of course, the human-capital and signaling components aren’t mutually exclusive. But, as long as at least some part of the job-market value of education comes from signaling, the demand for higher education depends on its perceived signaling value, relative to the cost of signaling. And herein lies the rub: getting a college degree is a very costly signal. Suppose high-ability workers could demonstrate their value to the job market by obtaining some credential that low-ability workers can’t or won’t obtain, without forgoing the explicit and opportunity costs of 4+ years at college. This would be an attractive alternative for many, and bad news for the higher-education industry, which today has a virtual monopoly on credentialing.

Michael Staton makes precisely this argument in today’s HBR Blog: “The Degree Is Doomed.” Staton argues that new technologies increasingly allow the unbundling of the learning and signaling functions of higher education, and that alternative signals such as “work samples, personal representations, peer and manager reviews, shared content, and scores and badges” are undermining the value of the college degree.

There are sites — notably Degreed and Accredible — that adapt existing notions of the credential to a world of online courses and project work. But there are also entire sectors of the innovation economy that are ceasing to rely on traditional credentials and don’t even bother with the skeumorph of an adapted degree.  Particularly in the Internet’s native careers – design and software engineering — communities of practice have emerged that offer signals of types and varieties that we couldn’t even imagine five years ago.   Designers now show their work on Dribbble or other design posting and review sites.  Software engineers now store their code on GitHub, where other software engineers will follow them and evaluate the product of their labor.  On these sites, peers not only review each other but interact in ways that build reputations within the community. User profiles contain work samples and provide community generated indicators of status and skill.

These are specialized areas, and probably not substitutes for the credentialing function for other fields and industries. But low-cost, innovative, specialized signaling methods could pose a significant challenge to the university establishment.

Of course, even if higher education loses its credentialing function, it can still add value the old-fashioned way, through teaching.

8 January 2014 at 10:54 am 4 comments

ISNIE Session at ASSA 2014

AEA_left| Peter Klein |

Those of you attending this weekend’s ASSA meeting in Philadelphia may want to catch a great session sponsored by ISNIE and titled “The Economic Institutions of Higher Education.” I am presenting along with Henry Manne and Sarah Smith; Scott Masten is chairing and discussants are Bob Gibbons, Henry Hansmann, and Jeff Furman. The session is Saturday, January 4 at 2:30pm in the Philadelphia Marriott, Grand Ballroom, Salon L

1 January 2014 at 2:20 pm 2 comments

Pirrong Responds

| Peter Klein |

Here’s Craig’s initial (and hopefully not final!) response to David Kocieniewski’s “farrago of dishonesty, insinuations, innuendo, and ad hominem.” As expected, Craig pulls no punches. Kocieniewski’s failure to point out that most of Craig’s professional work argues against the interests of his alleged paymasters “betrays his utter unprofessionalism and bias, and is particularly emblematic of the shockingly shoddy excuse for journalism that his piece represents.” The insinuation that Craig’s paid work deals with speculation, when none of it does, is “misleading, deceptive, and plainly libelous.” The Times piece is riddled with factual and chronological errors, deliberately inserted to score political points: “dishonest to its very core because of its egregiously biased omission of some essential material facts and deceptive presentation of others.” I can’t say I’m surprised; this is mainstream journalism, after all.

Craig also provides this roundup of posts defending him and Scott Irwin, including ours.

30 December 2013 at 11:30 pm Leave a comment

Rate My Journals

| Peter Klein |

Researchers: You rate products and sellers on Amazon and Ebay, you describe your travel experiences on TripAdvisor, and your students judge you on ratemyprofessors.com. I don’t know any systematic evidence on this, but consultants and journalists seem to think that companies are better off letting customers rate (and rant) online, even if this makes it more difficult to manage the brand.

A new venture called SciRev is encouraging researchers to rate their experiences with particular journals: how long are papers turned around, how good are the referee reports, how responsive is the editorial office. It’s not quite open-source peer review, because the specific papers and authors are anonymous (as far as I can tell), but it represents an interesting experiment in opening up the publishing process, at least in terms of author feedback on journals.

SciRev is a website made by researchers for researchers. The information provided by you and your fellow authors is freely available to the entire research community. In this way we aim to make the scientific review process more transparent. Efficient journals get credits for their efforts to improve their review process and the way they handle manuscripts. Less efficient journals are stimulated to put energy in organizing things better. Researchers can search for a journal with a speedy review procedure and have their papers published earlier. Editors get the opportunity to compare their journal’s performance with that of others and to provide information about their journal at our website.

SciRev aims to help science by making the peer review process more efficient. This process is one of the weakest links in the process of scientific knowledge production. Valuable papers may spent several months to over a year at reviewers’ desks and editorial offices before a decision is taken. This is a serious time loss in a process that in other respects has become much more efficient in the last decades. SciRev helps speeding up this process by making it more transparent. Researchers get the possibility to share their review experiences with their colleagues, who therefore can make a better informed choice for a journal to submit their work to. Journals that manage to set up a more efficient review process and which handle manuscripts better are rewarded for this and may attract more and better manuscripts.

There are only a few reviews at this point, so not much information to consume, but I like the concept. And I may be submitting some reviews of my own… (Thanks to Bronwyn Hall for the tip.)

16 December 2013 at 12:42 pm Leave a comment

ISNIE 2014

| Peter Klein |

logoThe ISNIE 2014 Call for Papers is now available. The conference is at Duke University, 19-21 June 2014, home of President-Elect and Program Committee Chair John de Figueiredo. Bob Gibbons and Timur Kuran are keynote speakers. ISNIE is one of our favorite conferences, so please consider submitting a proposal! Submissions are due 30 January 2014.

3 December 2013 at 10:04 am Leave a comment

Symposium on Allen’s Institutional Revolution

| Peter Klein |

Here is a symposium on Doug Allen’s very important book The Institutional Revolution (Chicago, 2011). The symposium features essays by Deirdre McCloskey, Joel Mokyr and José-Antonio Espín-Sánchez, and our own Dick Langlois, along with a reply by Doug. The issue revolves around the role of measurement, and Doug’s thesis that reductions in measurement costs are central to improved economic performance.

My favorite line, from Doug’s reply:

I have read “The Problem of Social Cost” more times than I can recall, and study as I may, I have never found a logical error in it. But here is the point: if the author, both at the time and 30 years later, still failed to fully grasp his own perfect work, then it is an understatement to note that the ideas are subtle.

25 October 2013 at 9:24 am Leave a comment

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Our Recent Books

Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).