Airline networks as joint goods: Implications for competition policy

This article derives a model of airline services as joint goods. Using this model, the article shows how the existence of higher fares in certain hub routes may imply the market has generated a solution to the problem of covering joint costs by having a larger proportion of those costs come from hub routes, rather than the existence of any general market failure. The model is then used to make recommendations for competition policy.     

Can we afford international human rights?

In a recent important book,The Ethics of International Business, Tom Donaldson argues that multinational corporations (as well as individuals and nationstates) must, at a minimum, respect international human rights. For a purported right to be such a fundamental right it must satisfy three conditions. Donaldson calls the third condition the fairness-affordability condition. The affordability part of this condition holds that moral agents must be capable of paying for the burdens and responsibilities that a proposed human right would impose. If this is impossible, then the purported right is not an international human right.I argue that Donaldson's affordability condition is subject to four objections which reveal its untenability as one of the conditions upon which identification of international human rights must rest. I offer another way of treating problems of affordability and capability when it comes to such rights that all moral agents must respect.George G. Brenkert is Professor of Philosophy at the University of Tennessee/Knoxville. He has recently completed a book,Political Freedom, to be published by Routledge. His current research focuses on issues in business ethics.     

The Division of Labor Under Homogeneity: A Critique of Mises and Rothbard

A bstract .   Even the most passionate defenders of free trade, such as Mises and Rothbard, claim that trade cannot occur under conditions of strict homogeneity of land, labor, and capital. We show that specialization, trade, and the division of labor can emerge even when resources are initially homogenous, due to "natural heterogeneity," economies of scale, and learning.     

Information value and efficiency measurement for risk-averse firms

This paper has three goals. First, we demonstrate that standard arguments and methods from production and duality analysis can be used to provide a comprehensive and general treatment of the value of information for a risk-averse firm with expected-utility (linear-in-probabilities) preferences and a general stochastic technology. Second, we place bounds on the value of information for a risk-averse firm and relate these bounds to characteristics of the technology and the producer’s preferences. The third and final goal is to derive the implications that information differences can have for measured efficiency differences and to relate the bounds on the value of information to those measured differences.      

RECEIPT OF INFORMATION AND INFLUENCE OVER DECISIONS IN HOSPITALS BY THE BOARD, CHIEF EXECUTIVE OFFICER AND MEDICAL STAFF

This article examines relationships between receipt of internal administrative information in hospitals, influence over general management decisions, and the extent to which certain organizational characteristics predict the receipt of information by each of the three major groups in hospitals: the board, the CEO, and the medical staff. Using a US national sample of 287 non-profit community hospitals, CEOs were found to receive the greatest amount of information and had highest influence while medical staffs were lowest on both measures. of five major organizational characteristics, hospital size emerged as the single strongest predictor of receipt of information for both boards (beta =?0.28, p 0.001) and medical staffs (beta =?0.42, p 0.001). Overall, the five dependent variables explained 18 per cent of the variance in receipt of information by boards and 28 percent of the variance for medical staffs.