Social Conflict and Gradual Political Succession: An Illustrative Model*

This paper studies the evolution of political institutions in the face of conflict. We examine institutional reform in a class of pivotal mechanisms—institutions that behave as if the resulting policy were determined by a “pivotal” decision maker drawn from the potential population of citizens and who holds full policy‐making authority at the time. A rule‐of‐succession describes the process by which pivotal decision makers in period t + 1 are, themselves, chosen by pivotal decision makers in period t. Two sources of conflict—class conflict, arising from differences in wealth, and ideological conflict, arising from differences in preferences—are examined. In each case, we characterize the unique Markov‐perfect equilibrium of the associated dynamic political game, and show that public decision‐making authority evolves monotonically downward in wealth and upward in ideological predisposition toward the public good. We then examine rules‐of‐succession when ideology and wealth exhibit correlation.     

Donald D. Stull and Michael J. Broadway. Slaughterhouse Blues: The Meat and Poultry Industry in North America. Belmont, Calif.: Thomson/Wadsworth, 2004. xviii + 172 pp. ISBN 0-534-61303-9, $25.95 (paper).

In the late 1980s Donald Stull and Michael Broadway launcheda remarkable collaborative project on the contemporary meatpackingindustry, on which Slaughterhouse Blues is based. With researchfunded in part by a massive Ford Foundation grant, Stull andBroadway brought a basketball team of social scientists to smalltowns in the Midwest where today’s huge packinghousesare located. The astounding productivity of this group runsto more than fifty articles in journals     

Research or practice: the debate goes on

Summary If research is superior to practice the difference does not appear to be in the process that is used. Inquiry and problem-solving are, in fact, based on the same process, decision-making. Both involved the use of an analysis-synthesis-evaluation sequence, both may involve deduction, but they also have the same inductive flaws, and both produce results that are of great benefit to mankind. Thus, if there is a difference, it must have something to do with the skills the individual brings to the process.Competent decision makers analyze and define the situation that exists, distinguish problems from symptoms and identify the problems that should be considered. They think creatively as they generate options using brainstorming, synectics, and lateral thinking. They use logic to test the ideas involved in each step of the process, make assumptions, test inferences, interpret statements, and evaluate arguments. They demand evidence for claims that are made and think critically as they weigh, reconcile, and assess arguments using dialogue, discussion, and debate. And they apply appropriate values and ethics before they make decisions. These are the skills that should be taught in schools for if there is any superiority, it is not intrinsic to the process, it is within the decision maker.This paper was first presented at a conference of the American Society of Mechanical Engineers     

The change in productivity of Chinese state enterprises, 1983–1987

This study estimates the change in productivity of Chinese state enterprises during 1983–1987 using a panel data set of 403 firms. A new approach to productivity measurement is used. Under this approach, the production functions can differ arbitrarily across firms, important given the heterogeneity of the sample. The resulting coefficients estimate the marginal products of each factor as well as overall productivity growth. The results suggest Chinese productivity increased by 4.6% per year, with about half of this growth due to the rapidly improving education of the labor force.     

Big Players in Slovenia

The subjectivism of Austrian economics helps to explain the statistical fact of long memory in asset prices. The theory of Big Players is an Austrian approach to understanding the effects of discretionary policymaking in markets. It leads to implications that can be tested with statistics. In particular, Big Players induce herding and, thereby, an increase of persistence in asset prices. A recent episode in Slovenian monetary theory provides a case study. This case study adds to a set of similar studies, all tending to support the theory of Big Players.     

Shifting the goal posts for design management in capital goods projects: 'design for maintainability'

Two case studies of capital goods projects, both of which were faced with new forms of demand for their products, are reported in this paper. In both cases, the contracting organisations involved were adjusting to new customer requirements for the long-term provision of the services associated with the capital goods they normally produced, rather than for the capital goods themselves. While both contracting organisations recognised the need to re-focus their equipment design efforts, to reflect the need for long-term service reliability (both contracting organisations were tied to penalties associated with agreed service levels), they nevertheless responded differently to this challenge, and their differing responses reflected the differing natures of the extended networks which comprised both projects and the organisational architectures in which the projects were themselves embedded. The paper explores the differing opportunities and barriers to the management of design in complex projects presented by these two case studies. In so doing it points to the conclusion that successful design management in complex projects can depend upon the successful management of the (multiple) contexts in which design takes place.     

International Benchmarking for Monopoly Price Regulation: The Case of Australian Gas Distribution

Price-cap regulation is widely applied to network industries. However, regulators often encounter the problem of asymmetric information on efficient costs. Benchmarking can help reduce this problem. We present a benchmarking analysis, conducted for an Australian regulator, that derives measures of efficiency for Australian gas distributors relative to U.S. counterparts. Several techniques, such as data envelopment analysis and stochastic frontier analysis, are used to ensure that our measures are robust to methodology choice. We conclude with a discussion of how the regulator used the benchmarking results, along with other information, to help it determine appropriate price caps.