Behavioral Economics Commons^™

Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz

Justin Schwartz

Why are most capitalist enterprises of any size organized as authoritarian bureaucracies rather than incorporating genuine employee participation that would give the workers real authority? Even firms with employee participation programs leave virtually all decision-making power in the hands of management. The standard answer is that hierarchy is more economically efficient than any sort of genuine participation, so that participatory firms would be less productive and lose out to more traditional competitors. This answer is indefensible. After surveying the history, legal status, and varieties of employee participation, I examine and reject as question-begging the argument that the rarity of genuine …

The Role Of The Law In The Availability Of Public Transit And Affordable Housing In Atlanta’S West End, Elliott Lipinsky

ELLIOTT LIPINSKY

The Federal Transit Administration (FTA) is a branch of the U.S. Department of Transportation that administers federal funds and provides technical assistance for the support of locally operated public transit systems. MARTA / Atlanta metro area are part of FTA Region IV (the Southeast). FTA would be involved, for instance, in financing the federal grant monies discussed above. But actual regulation of operations (i.e., what MARTA does each day, or what MARTA will plan to do regionally) is more closely regulated by Georgia agencies.

Until recently, the Atlanta metropolitan area had no powerful central agency to coordinate regional transit. The …

Los Modelos De Equilibrio General: La Revisión De Chancelier Y Una Crítica A Debreu Y Mckenzie, Rodrigo Lopez-Pablos

Lopez-Pablos, Rodrigo

A revision on general equilibrium theory from an entropic perspective. JEL CLASSIFICATION: D50, O21, Z19

How Much Does A Belief Cost?: Revisiting The Marketplace Of Ideas, Gregory Brazeal

Gregory Brazeal

Justice Oliver Wendell Holmes, Jr. is often credited with creating the metaphor of “the marketplace of ideas,” though he did not use the exact phrase and his argument for free speech was not based on distinctively economic reasoning. Truly economic investigations of the marketplace of ideas have progressed in step with developments and trends in the law and economics literature. These investigations have tended to be one-sided, with writers focusing primarily either on the production of ideas (for example, Posner) or their consumption (for example, behavioral law and economics), without considering in depth how producers and consumers interact. This may …

Collective Choice, Justin Schwartz

Justin Schwartz

This short nontechnical article reviews the Arrow Impossibility Theorem and its implications for rational democratic decisionmaking. In the 1950s, economist Kenneth J. Arrow proved that no method for producing a unique social choice involving at least three choices and three actors could satisfy four seemingly obvious constraints that are practically constitutive of democratic decisionmaking. Any such method must violate such a constraint and risks leading to disturbingly irrational results such and Condorcet cycling. I explain the theorem in plain, nonmathematical language, and discuss the history, range, and prospects of avoiding what seems like a fundamental theoretical challenge to the possibility …

Participation And Engagement In Sport: A Double Hurdle Approach For The United Kingdom, Babatunde Buraimo, Brad Humphreys, Rob Simmons

Dr Babatunde Buraimo

This paper uses pooled cross-section data from four waves of the United Kingdom’s Taking Part Survey, 2005 to 2009, in order to investigate determinants of probability of participation and levels of engagement in sports. The two rival modelling approaches considered here are the double-hurdle approach and the Heckman sample selection model. The Heckman model proves to be deficient in several key respects. The double-hurdle approach offers more reliable estimates than the Heckman sample selection model, at least for this particular survey. The distinction is more than just statistical nuance as there are substantive differences in qualitative results from the two …

Gift Giving And The Creation Of Trust, Martin Mathews

Martin Mathews

We examine the role that gift giving plays in industrial districts and in particular the role of gift giving in the creation of inter-organisational trust. Inter-organisational exchanges in a mature industrial district are analyzed using Mauss’ theoretical framework of gift-giving, receiving and counter-giving. Actors in embedded network relationships frequently exchange gifts and favours. This gift giving is a fundamental part of the relationship. Gift giving is found to be instrumental in creating and maintaining relationships, defining group and individual identity and resolving conflicts. The originality of our findings lies in the fact that despite the ideology of the purely altruistic …

Gone In 60 Seconds: The Absorption Of News In A High-Frequency Betting Market, Babatunde Buraimo, David Peel, Rob Simmons

Dr Babatunde Buraimo

This paper tests for efficiency in a betting market that offers high-frequency data, the Betfair betting exchange for wagering on outcomes of English Premier League soccer matches. We find clear evidence of rapid adjustment of prices to large disturbances (news). Full adjustment takes place within a one minute interval after the news. This suggests that this particular wagering market is not just efficient at pre-match prices but is also efficient in the face of events within games.

Perspectives On Social Cognition, Leslie Marsh, Christian Onof

Leslie Marsh

No longer is sociality the preserve of the social sciences, or ‘‘culture’’ the preserve of the humanities or anthropology. By the same token, cognition is no longer the sole preserve of the cognitive sciences. Social cognition (SC) or, sociocognition if you like, is thus a kaleidoscope of research projects that has seen exponential growth over the past 30 or so years. That so many disciplines now invoke the term ‘‘social cognition,’’ shouldn’t tempt one into thinking that they are all denoting the same idea. On the contrary, with such methodologically and perspectivally diverse interests involved, there is every chance that …

Perspectives On Social Cognition, Leslie Marsh, Christian Onof

Leslie Marsh

No longer is sociality the preserve of the social sciences, or ‘‘culture’’ the preserve of the humanities or anthropology. By the same token, cognition is no longer the sole preserve of the cognitive sciences. Social cognition (SC) or, sociocognition if you like, is thus a kaleidoscope of research projects that has seen exponential growth over the past 30 or so years. That so many disciplines now invoke the term ‘‘social cognition,’’ shouldn’t tempt one into thinking that they are all denoting the same idea. On the contrary, with such methodologically and perspectivally diverse interests involved, there is every chance that …

Michael Wheeler: Reconstructing The Cognitive World: The Next Step, Leslie Marsh

Leslie Marsh

Michael Wheeler is the latest in a new wave of philosophical theorists that fall within a loose coalition of anti-representationalism (or anti-Cartesianism): Dynamical –, Embodied –, Extended –, Distributed –, and Situated –, theories of cognition (DEEDS an apt acronym). Against this background, cognition for Wheeler is, or should be, a more ecumenical concept. This ecumenical approach would still be amenable to making theoretical distinctions, the central one being the notion of offline and online styles of intelligence, a distinction that makes conceptual space for another closely related notion, that of propositional knowledge (knowing that) and tacit knowledge (knowing how).

Dewey: The First Ghost-Buster?, Leslie Marsh

Leslie Marsh

Ghost-busting, or less colloquially, anti-Cartesianism or non-representationalism, is a loose and internally fluid coalition (philosophical and empirical) comprising Dynamical, Embodied, Extended, Distributed, and Situated (DEEDS) theories of cognition. Gilbert Ryle – DEEDS’ anglophonic masthead [1] – supposedly exorcised the Cartesian propensity to postulate mind as an apparition-like entity somehow situated in the body. Ryle’s behaviouristic recommendation was, that just as we don’t see the wind blowing but only see the trees waving, so too should we conceive intelligence as manifest though action. The Cartesian ghost of old has mutated, taking the form of the ‘Machine in the Machine’, the brain …

Review Of Sweet Dreams: Philosophical Obstacles To A Science Of Consciousness, Leslie Marsh

Leslie Marsh

The question of how a physical system gives rise to the phenomenal or experiential (olfactory, visual, somatosensitive, gestatory and auditory), is considered the most intractable of scientific and philosophical puzzles. Though this question has dominated the philosophy of mind over the last quarter century, it articulates a version of the age-old mind–body problem. The most famous response, Cartesian dualism, is on Daniel Dennett’s view still a corrosively residual and redundant feature of popular (and academic) thinking on these matters. Fifteen years on from his anti-Cartesian theory of consciousness (Consciousness Explained, 1991), Dennett’s frustration with this tradition is still palpable. This …

Relativism, Reflective Equilibrium, And Justice, Justin Schwartz

Justin Schwartz

THIS PAPER IS THE CO-WINNER OF THE FRED BERGER PRIZE IN PHILOSOPHY OF LAW FOR THE 1999 AMERICAN PHILOSOPHICAL ASSOCIATION FOR THE BEST PUBLISHED PAPER IN THE PREVIOUS TWO YEARS.

The conflict between liberal legal theory and critical legal studies (CLS) is often framed as a matter of whether there is a theory of justice that the law should embody which all rational people could or must accept. In a divided society, the CLS critique of this view is overwhelming: there is no such justice that can command universal assent. But the liberal critique of CLS, that it degenerates into …

In Defence Of Exploitation, Justin Schwartz

Justin Schwartz

The concept of exploitation is thought to be central to Marx's Critique of capitalism. John Roemer, an analytical (then-) Marxist economist now at Yale, attacked this idea in a series of papers and books in the 1970s-1990s, arguing that Marxists should be concerned with inequality rather than exploitation -- with distribution rather than production, precisely the opposite of what Marx urged in The Critique of the Gotha Progam.

This paper expounds and criticizes Roemer's objections and his alternative inequality based theory of exploitation, while accepting some of his criticisms. It may be viewed as a companion paper to my What's …

Functional Explanation And Metaphysical Individualism, Justin Schwartz

Justin Schwartz

A number of (present or former) analytical Marxists, such as Jon Elster, have argued that functional explanation has almost no place in the social sciences. (Although the discussion is framed in terms of a debate among analytical Marxists, the point is quite general, and Marxism is used for illustrative purposes.) Functional explanation accounts for what is to be explained by reference to its function; thus, sighted organism have eyes because eyes enable them to see. Elster and other critics of functional explanation argue that this pattern of explanation is inconsistent with "methodological individualism," the idea, as they understand it, that …

The Logic Of Protest Action, Herman L. Boschken

Herman L. Boschken

In recent years, there has been a noticeable growth in political protest involving groups of widely diverging interests. The rising incidence of protest seems paradoxical to the apparent growth of affluence in society. This paper attempts to resolve this paradox by contending that most forms of protest are a function of the degree of separation between (a) the values and goals of those controlling collective decision processes and (b) the diversity of interests and aspirations in segmented society at large. Through protest action, disenfranchised groups are able to impose "external" costs on "establishment" regimes that lead to alteration of the …