Free Trade and Laissez Faire: Has the Wheel Come Full Circle?

This paper notes that there is a need to get to a fourth stage in the evolution of the relationship of free trade to laissez faire going beyond the three stages identified in Max Cordon's magisterial book Trade Policy and Economic Welfare. In the first stage free trade was a special case of the argument for laissez faire. In the second stage many arguments for protection arose with various qualifications to the case of free trade and laissez faire. In the third stage the link between free trade and laissez faire was broken and in the theory of domestic distortions it was noted that all arguments for protection except in the case of monopoly power in trade were second best arguments. Moreover, it was possible to devise measures such as taxes and subsidies that reduced the distortion through government intervention. But noting that government intervention itself carries with it problems of rent seeking and directly unproductive activities as well as the taking into the proper role of Government, laissez faire seems the best policy. Hence the need for a fourth stage in the evolution of free trade and laissez faire to link them together again.     

Authenticity and the authentication of heritage: dialogical perceptiveness

ABSTRACT

The dialogue on authenticity continues to evolve across different temporalities and disciplines. This editorial for the special issue summarizes contemporary progress made by scholars of heritage tourism and shares innovative corridors for deep deliberations. A broad spectrum of provocative ideas are touched upon, ranging from host–guest authentication and intangible heritage to knowledge transfer processes, authenticating heritage in fairytale settings, authenticity and anxiety in the smell of death and life, understanding the boundaries of authenticity, nostalgia, sustainability, marketing, destination competitiveness, and examining affective connotations of authenticity. Discursive insights are offered on how different authenticities are legitimized and critically deconstructed and re-constructed again in the authentication process, to underline the existence of power and authority interventions. Inspiring/innovative pathways, for future research, are also recommended.     

Globalisation, history and development: a tale of two centuries

This paper situates globalisation in historical perspectiveto analyse its implications for development. It sketches a pictureof globalisation during the late nineteenth and twentieth centuries.A comparison of these two epochs reveals striking parallels,unexpected similarities and important differences. It showsthat globalisation did not lead to rapid growth and economicconvergence in the world, either then or now. Indeed, growthslowed down, and income levels diverged, while the gap betweenthe industrialised and developing countries widened, in bothepochs. The story of globalisation, it turns out, does not conformto the fairy tale about convergence and development.     

Investigative negotiation

Negotiators often fail to achieve results because they channel too much effort into selling their own position and too little into understanding the other party's perspective. To get the best deal -or, sometimes, any deal at al--egotiators need to think like detectives, digging for information about why the other side wants what it does. This investigative approach entails a mind-set and a methodology, say Harvard Business School professors Malhotra and Bazerman. Inaccurate assumptions about the other side's motivations can lead negotiators to propose solutions to the wrong problems, needlessly give away value, or derail deals altogether. Consider, for example, the pharmaceutical company that deadlocked with a supplier over the issue of exclusivity in an ingredient purchase. Believing it was a ploy to raise the price, the drugmaker upped its offer--unsuccessfully. In fact, the supplier was balking because a relative's company needed a small amount of the ingredient to make a local product. Once the real motivation surfaced, a compromise quickly followed. Understanding the other side's motives and goals is the first principle of investigative negotiation. The second is to figure out what constraints the other party faces. Often when your counterpart's behavior appears unreasonable, his hands are tied somehow, and you can reach agreement by helping overcome those limitations. The third is to view onerous demands as a window into what the other party prizes most--and use that information to create opportunities. The fourth is to look for common ground; even fierce competitors may have complementary interests that lead to creative agreements. Finally, if a deal appears lost, stay at the table and keep trying to learn more. Even if you don't win, you can gain insights into a customer's future needs, the interests of similar customers, or the strategies of competitors.     

Perspectives on Multiple Category Choice

Multiple category choice is a decision process in which an individualselects a number of goods, all of which are nonsubstitutable with respect toconsumption. Choices can be made either simultaneously or sequentially. Thekey feature of multiple category choice is the treatment of the choices asinterrelated because each item in the final collection of goods contributesto the achievement of a common behavioral goal. We discuss current andpotential applications of psychology, economics and consumer choice theoryin developing models of multiple category choice.     

Understanding Firm, Physician and Consumer Choice Behavior in the Pharmaceutical Industry

This paper argues that the pharmaceutical industry represents an exciting opportunity to carry out academic research. The nature of the industry allows researchers to answer new questions, develop new methodologies for answering these questions as well as to apply existing methodology to new data. The paper opens with some industry background, then provides a brief overview of some important research areas and discusses the open questions in each area. Issues of data type and availability are also discussed. This paper is based on a session (with the same title and participants) that was part of the Sixth Invitational Choice Symposium hosted by the University of Colorado and held at Estes Park, Colorado during June 4–8, 2004.     

Shadow of the contract: how contract structure shapes interfirm dispute resolution

This paper investigates how contract structure influences interfirm dispute resolution processes and outcomes by examining a unique dataset consisting of over 150,000 pages of documents relating to 102 business disputes. We find that the level of contract detail affects the type of dispute resolution approach that is adopted when conflict arises, and that different approaches are associated with different costs for resolving the dispute. We also find that the effect of contract choice on dispute resolution approach is moderated by the degree of coordination required in the relationship, and that the effect of dispute approach on costs is moderated by the degree of power asymmetry between the parties. Thus, even after controlling for various attributes of the exchange relationship and the dispute, the choice of contracting structure has important strategic implications. Copyright © 2010 John Wiley & Sons, Ltd.