Marx on Ricardo: an explanation of some important misunderstandings

Ricardo's theory of value and distribution is reconstructed by proceeding along the lines of Marx's critique of Ricardo. It is thus an anti-critique of Marx's reading of Ricardo. The chapter ‘On Value’ in Ricardo's Principles is shown to be a consistent and rigorous treatment of the determinants of prices of production. According to Ricardo labor-values merely serve to approximate more elaborate standards of value. Marx's criticism is shown to rest crucially on his own misinterpretation of Ricardo's definitions and presupposes his own – faulty – theory of surplus value. Therefore Ricardo's theory can – contrary to Marx's theory of surplus value – still be regarded as a fruitful complement to Sraffa's model.     

Ethical implications of business format franchising

Franchising in the business format sector accounted for approximately 35 percent of retail sales in the U.S. in 1991. Consequently, the franchising industry has a clear ethical responsibility to the public. At the same time, there exists an ethical obligation of the two major factors in the industry — the franchisor and the franchise — toward each other. Because the franchise agreement, which is the basis of the relationship, is originated by the franchisor, an asymmetrical distribution of power often exists, resulting in opportunistic behavior by the franchisor. In other cases, questionable or unethical practices by franchisees likewise result in conflict. This paper examines some of the basic areas of the franchise relationship which result in conflict, and discusses the situation analysis in business format franchising, which shows promise for reduction of conflict and unethical behavior for the future.Gordon Storholm is Associate Professor of Marketing at St. John's University, New York, N.Y. He is an active member of the Society of Franchising and has published several articles in the franchising field. He has contributed to this Journal and has several years' experience as a consultant in the Franchising and Marketing fields.Eberhard E. Scheuing is Professor of Marketing at St. John's University, New York, N.Y. He is Director of the Business Research Institute and has published several books and articles in the marketing field. He is widely recognized as a leading authority in the field of ethics in service quality.     

Energy,environment and the rural poor in South Africa

The lack of adequate energy services imposes heavy social and environmental costs on poor rural households. The rural energy‐environment interface, however, is prone to oversimplistic analyses, especially in the case of the ‘fuelwood problem’, and to a lack of research. International experience suggests that deforestation is not necessarily an ‘energy problem’ resulting from the cutting of trees for fuelwood ‐ and therefore that it may not have an energy solution, like planting more trees for firewood. Instead, wood scarcity must be understood under multiple use of wood resources, and policies need to be multifaceted if they are to succeed. South African studies show that wood is becoming increasingly scarce in many areas; here fuelwood collection may contribute to deforestation more than suggested by international experience. In addition to the environmental effects of increasing wood scarcity and its social costs, borne largely by women, another serious problem arises from indoor air pollution caused by wood fires with social and health costs largely unaccounted for to date.     

Energy consumption patterns and supply problems in underdeveloped areas in South Africa

Energy usage provides one striking example of processes and conditions of development and underdevelopment in South Africa and the concomitant inequalities in fulfilment of basic needs. Access to affordable and convenient fuels increases as households shift from underdeveloped rural and peri‐urban areas to the developed metropolitan centres. The form and quantity of fuels used by households is constrained by levels of urbanization, the availability and cost of fuels, and household income.

The energy supply problems in developing areas centre on two critical and immediate issues. Firstly, in rural areas the demand for fuelwood is exceeding supply with quite devastating social, economic and environmental consequences. A fuelwood supply and demand model has been developed which indicates the urgency for implementing afforestation programmes, although lack of sufficient suitable land implies that other energy supply strategies will also have to be considered. The second major problem is that the standard, most convenient and affordable domestic energy supply option, electricity, has still not been made available to many black townships and most peri‐urban areas. With increases in population and urbanization, the problem of adequate household energy supply is shifting to peri‐urban areas, which experience major social and economic costs as a result of dependence on costly and inconvenient fossil fuels and batteries. Electricity has been shown to be the most economical and preferred option.     

Functions of innovation systems: A new approach for analysing technological change

The central idea of this paper is that innovation systems are a very important determinant of technological change. We describe that the emergence of a new innovation system and changes in existing innovation systems co-evolve with the process of technological change. Therefore, it is necessary to create more insight in the dynamics of innovation systems. Traditional methods of innovation system analysis that mainly focus on the structure of innovation systems have proven to be insufficient. Therefore, we propose a framework that focuses on a number of processes that are highly important for well performing innovation systems. These processes are labeled as ‘functions of innovation systems’. After explaining this framework and embedding it in existing literature, we propose a method for systematically mapping those processes taking place in innovation systems and resulting in technological change. This method can be characterized as a process analysis or history event analysis. Clarifying examples are taken from the empirical field of Sustainable Technology Development.     

Self-Reporting and Ex Post Asymmetric Information

We consider a model of optimal law enforcement where sanctions are reduced for self-reporting individuals. Violators get private signals about their individual probabilities of apprehension after they committed a crime. Since violators will self-report if and only if the signal is above a specific threshold, the possibility of self-reporting has an option value that leads to a higher crime rate if the authority's effort remains unchanged. We demonstrate that self-reporting nevertheless increases social welfare even under the restriction that the crime rate must not be higher than without self-reporting. Received June 15, 2001; revised version received December 19, 2001     

Grants management skills keep funded projects on target

An often neglected but equally relevant aspect of program development and nursing research is the management of funded projects from the time an idea is generated to the final submission of project report. When effective grants management skills are used to oversee the development of a program proposal and the oversight of the funded project, the likelihood for successful outcome is increased. In this article several steps have been described in the grants management process that can be used to assure that projects are developed and proceed according to plan.     

All-Unit Discounts and the Problem of Surplus Division

All-unit discounts (AUD) are non-linear pricing schemes whereby buyers who reach a specific quantity threshold get rebates also retroactively for all units bought before. This sets high incentives for buyers to meet the quantity threshold, and may also have foreclosure effects on potential entrants. In a model where an incumbent faces second-period competition by entrants, we show that AUD can indeed be abused to shift rents from entrants. In contrast to exclusive dealing which is usually seen as very similar to AUD, inefficient quantity distortions may arise even with perfect information if and only if there is sufficiently intense competition among potential entrants.