Labour Markets in Professional Sports

Important elements of supply and demand are starkly observable in professional athletics. Demand affects how pay varies with personal productivity, racial discrimination, the nature of factor substitutions, and player mobility. Property rights affect the supply of athletic talent, arms races and incentives to restrict competition. In sports, excess incentives to win can create negative externalities. Collective agreements such as reverse-order drafts, payroll caps and revenue sharing constrain these forces, but redistribute rents from talented players to owners because they punish success. The European approach–promoting better-performing teams and relegating those with the poorest records–punish failure.     

The Head, The Heart, and Business Virtues

In Section I, I criticize the view, implied by the concept of rational economic man, that feelings are inherently opposed to rationality. I attempt to show that emotions or feelings are essential to the proper functioning of reason, rational objectivity, and practical rationality or rational decision making. In addition, I argue that emotions can help to resolve certain ethical dilemmas. In Section II, I consider business writers who criticize business for overemphasizing the head at the expense of feelings or the heart. In Section III, I discuss the connection between material self-interest (as manifested in trade) – a concept of rational economic man – and business virtues.     

Discrimination in the market for public school teachers

We seek to provide an answer to the question, ‘How much is required to induce white teachers to teach in black schools?’ using cross section data from the Coleman Report for 1965. The conceptual framework underlying estimation is a model of the spatial distribution of teachers based on the theory of equal advantage. School characteristics, including student racial composition, intelligence of students, student motivational indicators and neighborhood hazards are found to be important sources of real wage variation in the teachers' market. The estimates imply that a minimum increment of $300 (and probably more) was required for average white teachers to accept average black teachers' school characteristics in 1965.     

The Natural Roots of Capitalism and Its Virtues and Values

When we think of theories that attempt to root capitalism in nature, the one that comes most readily to mind is Social Darwinism. In this theory, nature – driven by Darwinian natural selection (the struggle for existence and the survival of the fittest) – is interpreted to imply, when applied to human activities, that extreme competition will allow the most "fit" competitors to rise to the top and to survive in this "struggle for existence," and this process of dog-eat-dog competition leads to both material and social progress. Not only has this theory been shown to be seriously flawed, the putative social implications of Darwinian natural selection do not accord with the findings of contemporary neoDarwinists who maintain, for example, that the behavior of monkeys and apes reveals a blend of competition and cooperation and, generally, a close connection to human moral behavior.Adam Smith provides a more helpful view of the connection between nature and capitalism. He maintains that nature's wisdom, as seen in its harmony and balance, is displayed in economics and human nature. Competitive free enterprise, as a vehicle for exchange, functions within a cooperative context and exhibits virtues and values such as mutual help and benefit, trust, harmony, and friendship. I shall show that neoDarwinists agree with Smith's view that nature supports a connection between competition and cooperation, and they maintain that moral activity, rather than destructive dog-eat-dog competition, is necessary to achieve the goals of natural selection.