Network architecture, cooperation and punishment in public good experiments

Following Fehr and G?echter (Am Econ Rev 90(4):980–994, 2000), a large and growing number of experiments show that public goods can be provided at high levels when mutual monitoring and costly punishment are allowed. Nearly all experiments, however, study monitoring and punishment in a complete network where all subjects can monitor and punish each other. The architecture of social networks becomes important when subjects can only monitor and punish the other subjects to whom they are connected by the network. We study several incomplete networks and find that they give rise to their own distinctive patterns of behavior. Nevertheless, a number of simple, yet fundamental, properties in graph theory allow us to interpret the variation in the patterns of behavior that arise in the laboratory and to explain the impact of network architecture on the efficiency and dynamics of the experimental outcomes.     

‘Nothing gets done and no one knows why’: PCS and workplace control of Lean in HM Revenue and Customs

This article examines the willingness and capacity of public sector unions to mobilise action against changes in the labour process in order to maintain some measure of control at the point of production. Taking as an instance an extended dispute in Her Majesty's Revenue and Customs over the introduction and impact of Lean processes, it marshals evidence gathered from documentary sources, branch representatives and national lay full‐time officers to engage with the notion of a trade union bureaucracy. In taking a union with a left‐wing leadership and a section with 80 per cent membership with an expressed willingness to escalate industrial action, the article tests Hyman's 1979 contention that, rather than a concentration on a bureaucratic caste, a much better explanation for conservatism centres on the nature of social relations within the union that encompass a wider layer of representatives.     

Facilitating the development of a global mindset through a cultural experience

The current article describes an assignment utilized in an undergraduate course “Leadership in a Global Society.” The assignment requires students to participate in a cultural experience and interview the leader of the event. Student feedback collected over several semesters indicates that the assignment was invaluable in helping students understand people from cultures different than the ones with which they normally identify. Furthermore, students reported gaining a better understanding of themselves and a willingness to seek out other cultural learning opportunities.     

Lending Through the Cycle: The Federal Housing Administration’s Evolving Risk in the Primary Market

Utilizing a sample of loan originations, the distribution of the market served by the Federal Housing Administration (FHA) and conventional lenders is modeled through this current cycle. Results indicate that FHA market shares in the early years of the observation period (2003 through 2006) are concentrated in zip codes with higher economic risk characteristics and obtained by high risk borrowers. FHA is forced to accept lower quality loans as competition from more nimble private lenders with lower access hurdles and more rapid processing expanded into markets traditionally served by FHA. Unexpectedly, the analysis also reveals that the distribution of FHA loans fails to exhibit a targeted racial bias toward neighborhoods with African American Concentration.     

Entrepreneurship: Cause and Consequence of Financial Optimism

Extant evidence that the self‐employed overestimate their returns by a greater margin than employees is consistent with two mutually inclusive possibilities. Self‐employment may foster optimism or intrinsic optimists may be drawn to self‐employment. Previous research is generally unable to disentangle these effects because of reliance on cross‐sectional data. Using longitudinal data, this paper finds that employees who will be self‐employed in the future overestimate their short‐term financial wellbeing by more than those who never become self‐employed. Optimism is higher still when self‐employed. These results suggest that the greater optimism of the self‐employed reflects both psychological disposition and environmental factors. By providing greater scope for optimism, self‐employment entices the intrinsically optimistic.     

Stable and enforceable: a new fiscal framework for the Euro area

Since the great financial crash, the need for new fiscal rules to prevent unsustainable fiscal policies is universally recognised. In practice such rules, including those in the Stability and Growth Pact, have proved to be impossible to enforce. Thus, to avoid unsustainable fiscal policies reappearing, and to prevent monetary policy from being undermined by undisciplined governments, there is a need for a framework capable of imposing fiscal discipline. This paper considers an intertemporal assignment, where fiscal policy focuses on long-term objectives and monetary policy on short-term stabilisation. We argue for public sector debt targets as a practical way to achieve such a set up, and an excess debt protocol is constructed to give enforceable form to those targets. The ideas of “fiscal space” and optimal debt levels are used to provide a mechanism for identifying a stable region within which the debt targeting regime should operate. Making these factors explicit would both improve the credibility of planned fiscal policies and reduce risk premia on borrowing costs. We finally show how Europe’s competitiveness pact, and debt restructuring operations, can be used to maximise the available fiscal space.     

Learning from the world? Horizontal knowledge flows and geopolitics in international consulting firms

This paper examines the nature of the contemporary multinational corporation (MNC) through a study of the use of knowledge management systems (KMS) in four major international consulting firms. In particular, we explore whether and how such systems facilitate horizontal (inter-subsidiary) flows of knowledge, as described in the network view of the MNC. Our analysis reveals the presence of horizontal flows within the four firms, but flows that are contextually constrained and partly shaped by geopolitical power relations. Thus, our study gives some support to the image of the MNC as a network whilst highlighting the contextual limits of horizontal knowledge transfer and, importantly, the geopolitical conditions under which such knowledge transfer takes place. At the same time, it challenges the claim that consulting firms are model organizations in the area of knowledge management as well as the more negative view that questions the ability of KMS to facilitate knowledge transfer.     

The research university,entrepreneurship and regional development: Research propositions and current evidence

The objective of this paper is to set a framework for examining the conditions under which a research university becomes more than a latent asset [Power, D., and A. Malmberg. 2008. The contribution of universities to innovation and economic development: In what sense a regional problem? Cambridge Journal of Regions, Economy and Society 1, no. 2: 233–46.] in regional economies. The framework is comprised of four propositions used to identify drivers of change, evidence of change and evidence of impact. As an exemplar, we examine the University of Oxford's growing engagement in its local region. This paper shows that the convergence between the interests of the university and the local high-tech economy is particularly associated with broader technological trends and with the University's capacity to draw on national funding programmes designed to stimulate ‘third-stream’ activities, including entrepreneurship courses and regional networking activities.     

Dynamics of partisan representation the American south, 1898–2010

This study addresses institutional representation in legislative delegations through the decomposition of the southern U.S. House delegation over time. Linear first-order difference equations are calculated to show the shift from the Solid South and the disintegration of Democratic dominance. These calculations also show that the qualitative behavior of partisan control varies over time given a series of critical events, including the Dixiecrat experience, the Congressional reforms of the 1970s, and the Republican Revolution of 1994. However, I also argue that the Republican Revolution was actually predictable, given the twentieth-century experience of the southern delegation.     

Prostitutes,Pimps, and Brothels: Intermediaries,Information, and Market Structure in Prostitution Markets

Prostitution is a multi‐billion dollar, globally distributed, low‐concentration service industry that is receiving increasing attention in the economics literature. This article focuses on a widespread, but little studied, feature of this environment—the role of intermediaries (pimps or brothel owners) on market outcomes. Prostitution laws and markets are perhaps unique in that transactions between principals (prostitutes and johns) are legal in many countries, while intermediary activity (pimping) is illegal. After surveying the varying cross‐country legality of agents we develop a simple theoretical model to analyze how the presence or absence of intermediaries shifts the distribution of market surplus. We show that eliminating pimps and brothels may shift surplus in non‐obvious ways, depending on the precise function they perform and on whether equilibrium is pooling or separating across “high quality” and “low quality” market segments. The implications of alternative policy regimes (intermediaries legal or illegal) are considered.