Opportunism, hold-up and the (contractual) theory of the firm

This paper considers the role of opportunism in three contractual theories of the firm: rent-seeking theory, property rights theory, and agency theory. In each case I examine whether it is possible to have a functioning contractual theory of the firm without recourse to opportunism. Without opportunism firms may still exist as a result of issues arising from (incomplete) contracting. Far from posing a problem for the theory of the firm, questioning the role of opportunism and the ubiquity of the hold-up problem helps us understand more about the purpose and functions of contracts which go beyond mere incentive alignment.

How contracts and enforcement explain transaction outcomes

This study considers the influence of contracts on enforcement and the subsequent performance impact of aligned and misaligned enforcement. We define enforcement as a corrective action aimed at remedying problems occurring in the transaction. First we explain the role of contracts and show that at the component level, contracts can both increase and decrease enforcement. Building on an alignment perspective and accounting for the endogeneity of enforcement, we use these contractual components and variables related to enforcement to predict the occurrence of enforcement. We use such predictions to show that aligned enforcement results in higher performance. We also show that the performance impact of misaligned enforcement is relatively greater for transactions where enforcement is not expected. We conduct the study using a unique dataset reporting on 971 business transactions across a wide range of industries.

Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative

The paper analyses the potential benefits of marketing cooperatives in Hungary, employing a transaction cost economics framework. We found that the purchased quantity, the existence of contracts, flexibility and trust are the most important factors farmers consider when selling their products via a cooperative. The most striking result is that diversification has positive influences on the share of cooperatives in farmers’ sale. Furthermore, farmers with larger bargaining power have less willingness to sell their product to the cooperative. Surprisingly, asset specificity has rather negative effects on the share of cooperatives in members’ sales.

Three essays on the economics of defense contracting, output and income inequality

This dissertation analyzes both the economics of the defense contracting process and the impact of total dollar obligations on the economies of U.S. states. Using various econometric techniques, I will estimate relationships across individual contracts, state level output, and income inequality. I will achieve this primarily through the use of a dataset on individual contract obligations. ^ The first essay will catalog the distribution of contracts and isolate aspects of the process that contribute to contract dollar obligations. Accordingly, this study describes several characteristics about individual defense contracts, from 1966-2006: (i) the distribution of contract dollar obligations is extremely rightward skewed, (ii) contracts are unevenly distributed in a geographic sense across the United States, (iii) increased duration of a contract by 10 percent is associated with an increase in costs by 4 percent, (iv) competition does not seem to affect dollar obligations in a substantial way, (v) contract pre-payment financing increases the obligation of contracts from anywhere from 62 to 380 percent over non-financed contracts. ^ The second essay will turn to an aggregate focus, and look the impact of defense spending on state economic output. The analysis in chapter two attempts to estimate the state level fiscal multiplier, deploying Difference-in-Differences estimation as an attempt to filter out potential endogeneity bias. Interstate variation in procurement spending facilitates utilization of a natural experiment scenario, focusing on the spike in relative spending in 1982. The state level relative multiplier estimate here is 1.19, and captures the short run, impact effect of the 1982 spending spike. ^ Finally I will look at the relationship between defense contracting and income inequality. Military spending has typically been observed to have a negative relationship with income inequality. The third chapter examines the existence of this relationship, combining data on defense procurement with data on income inequality at the state level, in a longitudinal analysis across the United States. While the estimates do not suggest a significant relationship exists for the income share of the top ten percent of households, there is a significant positive relationship for the income share of top one percent households for an increase in defense procurement.^

Police is Dead: On the Birth of Economism

Police is Dead is an historiographic analysis whose objective is to change the terms by which contemporary humanist scholarship assesses the phenomenon currently termed neoliberalism. It proceeds by building an archeology of legal thought in the United States that spans the nineteenth and twentieth centuries. My approach assumes that the decline of certain paradigms of political consciousness set historical conditions that enable the emergence of what is to follow. The particular historical form of political consciousness I seek to reintroduce to the present is what I call “police:” a counter-liberal way of understanding social relations that I claim has particular visibility within a legal archive, but that has been largely ignored by humanist theory on account of two tendencies: first, an over-valuation of liberalism as Western history’s master signifier; and second, inconsistent and selective attention to law as a cultural artifact. The first part of my dissertation reconstructs an anatomy of police through close studies of court opinions, legal treatises, and legal scholarship. I focus in particular on juridical descriptions of intimate relationality—which police configured as a public phenomenon—and slave society apologetics, which projected the notion of community as an affective and embodied structure. The second part of this dissertation demonstrates that the dissolution of police was critical to emergence of a paradigm I call economism: an originally progressive economic framework for understanding social relations that I argue developed at the nexus of law and economics at the turn of the twentieth century. Economism is a way of understanding sociality that collapses ontological distinctions between formally distinct political subjects—i.e., the state, the individual, the collective—by reducing them to the perspective of economic force. Insofar as it was taken up and reoriented by neoliberal theory, this paradigm has become a hegemonic form of political consciousness. This project concludes by encouraging a disarticulation of economism—insofar as it is a form of knowledge—from neoliberalism as its contemporary doctrinal manifestation. I suggest that this is one way progressive scholarship can think about moving forward in the development of economic knowledge, rather than desiring to move backwards to a time before the rise of neoliberalism. Disciplinarily, I aim to show that understanding the legal historiography informing our present moment is crucial to this task.

Three Essays on the Economics of Defense Contracting, Output and Income Inequality

This dissertation analyzes both the economics of the defense contracting process and the impact of total dollar obligations on the economies of U.S. states. Using various econometric techniques, I will estimate relationships across individual contracts, state level output, and income inequality. I will achieve this primarily through the use of a dataset on individual contract obligations. The first essay will catalog the distribution of contracts and isolate aspects of the process that contribute to contract dollar obligations. Accordingly, this study describes several characteristics about individual defense contracts, from 1966-2006: (i) the distribution of contract dollar obligations is extremely rightward skewed, (ii) contracts are unevenly distributed in a geographic sense across the United States, (iii) increased duration of a contract by 10 percent is associated with an increase in costs by 4 percent, (iv) competition does not seem to affect dollar obligations in a substantial way, (v) contract pre-payment financing increases the obligation of contracts from anywhere from 62 to 380 percent over non-financed contracts. The second essay will turn to an aggregate focus, and look the impact of defense spending on state economic output. The analysis in chapter two attempts to estimate the state level fiscal multiplier, deploying Difference-in-Differences estimation as an attempt to filter out potential endogeneity bias. Interstate variation in procurement spending facilitates utilization of a natural experiment scenario, focusing on the spike in relative spending in 1982. The state level relative multiplier estimate here is 1.19, and captures the short run, impact effect of the 1982 spending spike. Finally I will look at the relationship between defense contracting and income inequality. Military spending has typically been observed to have a negative relationship with income inequality. The third chapter examines the existence of this relationship, combining data on defense procurement with data on income inequality at the state level, in a longitudinal analysis across the United States. While the estimates do not suggest a significant relationship exists for the income share of the top ten percent of households, there is a significant positive relationship for the income share of top one percent households for an increase in defense procurement.

All in the Family? Parental Roles in the Epidemic of Childhood Obesity

Childhood obesity is a serious global health challenge. Families and consumption are at the nexus of the problem, as childhood weight issues depend significantly on family-related influences (genetic predispositions, physical activities, and household food consumption practices). This article focuses on how a family socializes a child toward or away from obesity. It advances a family consumer socialization framework to characterize key elements and processes. Biological predispositions, parent/family inputs, elements of child development, parent-child interactions, and intergenerational transfer are all major contributors to weight status and life course potentials. Time is also a crucial component, here represented in two forms -- linear and cyclical. Drawing on extensive research from other disciplines and related consumer research, five “Foundational Properties” are distilled, representing fundamental tenets underpinning the family’s role in this problem. Each property is then used to chart promising opportunities for consumer researchers and others interested in advancing knowledge on this pressing concern.

Reframing reporting of childhood sexual exploitation: three journalists reflect

This article explores three national and local journalists’ experiences of reporting on child sexual exploitation by so-called “Asian street grooming gangs” in UK towns and cities, with a particular emphasis on journalists framing journalists. In response to coverage of a series of cases, journalists have been accused by academics, policymakers and rival media organizations of fixating on perpetrators’ ethnicity and creating distorted, racist media frames. Few, if any, studies have garnered practitioners’ perspectives on how framing occurs, so we interview three prominent journalists who have covered such cases in order to deepen our understanding of the processes and causative factors behind particular editorial angles. While offering only a snapshot view, our findings reveal these individual journalists to be caught at the nexus of a range of factors that impact upon their work, both internally and externally driven.

The Ultimate Secrecy: Feminist Readings of Masculine Trauma in Vietnam War Literature

It is a widely acknowledged and often unquestioned fact that patriarchy and its modes of behaviour and social organization favour the appearance of trauma on the weakest (and defenceless) members of society: women. In the last decades, trauma seems to have taken the baton of typically female maladies such as 19th c. hysteria or 20th c. madness. Feminists in the 20th c. have long worked to prove the connection between the latter affections (and their reflection in literary texts) and patriarchal oppression or expectations of feminine behaviour and accordance to roles and rules. With Trauma Studies on the rise, the approach to the idea of the untold as related to femininity is manifold: on the one hand, is not trauma, which precludes telling about one’s own experience and keeps it locked not only from the others, but also from ourselves, the ultimate secrecy? On the other hand, when analyzing works that reflect trauma, one is astounded by the high number of them with a female protagonist and an almost all-female cast: in this sense, a ‘feminist’ reading is almost compulsory, in the sense that it is usually the author’s assumption that patriarchal systems of exploitation and expectations favour traumatic events and their outcome (silence and secrets) on the powerless, usually women. Often, traumatic texts combine feminism with other analytical discourses (one of the topics proposed for this panel): Toni Morrison’s study of traumatic responses in The Bluest Eye and Beloved cannot be untangled from her critique of slavery; just as much of Chicana feminism and its representations of rape and abuse (two main agents of trauma) analyze the nexus of patriarchy, new forms of post-colonialism, and the dynamics of power and powerlessness in ethnic contexts. Within this tradition that establishes the secrecies of trauma as an almost exclusively feminine characteristic, one is however faced with texts which have traumatized males as protagonists: curiously enough, most of these characters have suffered trauma through a typically masculine experience: that of war and its aftermath. By analyzing novels dealing with war veterans from Vietnam or the Second World War, the astounding findings are the frequent mixture of masculine or even ‘macho’ values and the denial of any kind of ‘feminine’ characteristics, combined with a very strict set of rules of power and hierarchy that clearly establish who is empowered and who is powerless. It is our argument that this replication of patriarchal modes of domination, which place the lowest ranks of the army in a ‘feminine’ situation, blended with the compulsory ‘macho’ stance soldiers are forced to adopt as army men (as seen, for example, in Philip Caputo’s Indian Country, Larry Heinemann’s Paco’s Story or Ed Dodge’s DAU: A Novel of Vietnam) furthers the onset and seriousness of ulterior trauma. In this sense, we can also analyze this kind of writing from a ‘feminist’ point of view, since the dynamics of über-patriarchal power established at the front at war-time deny any display of elements traditionally viewed as ‘feminine’ (such as grief, guilt or emotions) in soldiers. If trauma is the result of a game of patriarchal empowerment, how can feminist works, not only theoretical, but also fictional, overthrow it? Are ‘feminine’ characteristics necessary to escape trauma, even in male victims? How can feminist readings of trauma enhance our understanding of its dynamics and help produce new modes of interaction that transcend power and gender division as the basis for the organization of society?

Emotion and performance

The study of emotions in organizational settings has attained considerable prominence in recent years, but I critical issue remains unresolved. This is the relationship between emotion and performance. in this special issue, 5 articles address this topic from a variety of viewpoints. Two are theoretical essays that deal, respectively, with emotion and creativity and the relationships between individual and team performance. Three are empirical studies that canvass the emotion-performance nexus across levels of analysis: within person, between persons, and in groups. Between them, the 5 articles present a strong case for the nexus of emotions and performance, but, more important, they provide a platform for potentially fruitful future research in this burgeoning area.

Transformando burocracias para financiar os mais pobres: a evolu????o do Pronaf Cr??dito Grupo B

Institui????es banc??rias tradicionalmente n??o oferecem servi??os financeiros, principalmente cr??dito produtivo, aos grupos de mais baixa renda. Considerando-se a rigidez do sistema financeiro em trabalhar com os mais pobres, o presente artigo descreve o processo de cria????o e aperfei??oamento de uma pol??tica p??blica de microcr??dito rural dentro do Programa Nacional de Fortalecimento da Agricultura Familiar (Pronaf). S??o apresentadas as motiva????es para altera????es no desenho da linha de cr??dito, assim como as mudan??as normativas, de fontes e de agentes operadores, efetuadas em cada ano-safra para tornar poss??vel superar os desafios apresentados pela burocracia do Sistema Nacional de Cr??dito Rural ??? SNCR. O texto apresenta ainda o impacto no n??mero de contrata????es resultante das diversas medidas tomadas. Finalmente, ?? feito um balan??o das principais li????es aprendidas assim como dos desafios atuais de maior qualifica????o do microcr??dito e integra????o com outras pol??ticas p??blicas.

Transações com partes relacionadas : determinantes e impactos no desempenho das empresas

A literatura internacional que analisa os fatores impactantes das transações com partes relacionadas concentra-se no Reino Unido, nos EUA e no continente asiático, sendo o Brasil um ambiente pouco investigado. Esta pesquisa tem por objetivo investigar tanto os fatores impactantes dos contratos com partes relacionadas, quanto o impacto dessas transações no desempenho das empresas brasileiras. Estudos recentes que investigaram as determinantes das transações com partes relacionadas (TPRs), assim como seus impactos no desempenho das empresas, levaram em consideração as vertentes apresentadas por Gordon, Henry e Palia (2004): (a) de conflitos de interesses, as quais apoiam a visão de que as TPRs são danosas para os acionistas minoritários, implicando expropriação da riqueza deles, por parte dos controladores (acionistas majoritários); e (b) transações eficientes que podem ser benéficas às empresas, atendendo, desse modo, aos objetivos econômicos subjacentes delas. Esta pesquisa apoia-se na vertente de conflito de interesses, com base na teoria da agência e no fato de que o cenário brasileiro apresenta ter como característica uma estrutura de propriedade concentrada e ser um país emergente com ambiente legal caracterizado pela baixa proteção aos acionistas minoritários. Para operacionalizar a pesquisa, utilizou-se uma amostra inicial composta de 70 empresas com ações listadas na BM&FBovespa, observando o período de 2010 a 2012. Os contratos relacionados foram identificados e quantificados de duas formas, de acordo com a metodologia aplicada por Kohlbeck e Mayhew (2004; 2010) e Silveira, Prado e Sasso (2009). Como principais determinantes foram investigadas proxies para captar os efeitos dos mecanismos de governança corporativa e ambiente legal, do desempenho das empresas, dos desvios entre direitos sobre controle e direitos sobre fluxo de caixa e do excesso de remuneração executiva. Também foram adicionadas variáveis de controle para isolar as características intrínsecas das firmas. Nas análises econométricas foram estimados os modelos pelos métodos de Poisson, corte transversal agrupado (Pooled-OLS) e logit. A estimação foi feita pelo método dos mínimos quadrados ordinários (MQO), e para aumentar a robustez das estimativas econométricas, foram utilizadas variáveis instrumentais estimadas pelo método dos momentos generalizados (MMG). As evidências indicam que os fatores investigados impactam diferentemente as diversas medidas de TPRs das empresas analisadas. Verificou-se que os contratos relacionados, em geral, são danosos às empresas, impactando negativamente o desempenho delas, desempenho este que é aumentado pela presença de mecanismos eficazes de governança corporativa. Os resultados do impacto das medidas de governança corporativa e das características intrínsecas das firmas no desempenho das empresas são robustos à presença de endogeneidade com base nas regressões com variáveis instrumentais.

Lições de Direito dos Contratos

1 – Importância e actualidade do instituto. 2 – Noção de contrato. Sua disciplina no Código Civil. 3 – Relações contratuais de facto. 4 – Princípios fundamentais do regime dos contratos. 5 – Princípio da liberdade contratual. 6 – Princípio do consensualismo. 7 – Princípio da boa fé. A responsabilidade pré-contratual. 8 – Princípio da força vinculativa. 9 – Contratos unilaterais ou não sinalagmáticos e bilaterais ou sinalagmáticos. Contratos gratuitos e onerosos. Contratos cumulativos e aleatórios. 10 – Contratos mistos. União de contratos ou coligação de contratos. 11 – Contrato-promessa. 12 – Pacto de preferência. 13 - Alguns problemas e “contratos em especial”, a título enunciativo, relacionados com as actividades de Gestão, Banca e Seguros: “aspectos contratuais” de direito civil e de direito comercial. § 1 - Importance and actuality of the institute. 2 - Contract notion. Its disciplines in the portuguese Civil Code. 3 – Contractual relations of fact. 4 - Basic principles of the regimen of contracts. 5 - Principle of the contractual freedom. 6 - Principle of “consensualism”. 7 - Principle of the "good faith". The pre-contractual liability. 8 - Principle of the obligatory force (binding). 9 - Unilateral or not bilateral contracts. Free and onerous contracts. Cumulative and random contracts.

Contratos bilaterais em mercados multi-agente de energia eléctrica: protocolo de ofertas alternadas

A liberalização do sector eléctrico, e a consequente criação de mercados de energia eléctrica regulados e liberalizados, mudou a forma de comercialização da electricidade. Em particular, permitiu a entrada de empresas nas actividades de produção e comercialização, aumentando a competitividade e assegurando a liberdade de escolha dos consumidores, para decidir o fornecedor de electricidade que pretenderem. A competitividade no sector eléctrico aumentou a necessidade das empresas que o integram a proporem preços mais aliciantes (do que os preços propostos pelos concorrentes), e contribuiu para o desenvolvimento de estratégias de mercado que atraiam mais clientes e aumentem a eficiência energética e económica. A comercialização de electricidade pode ser realizada em mercados organizados ou através de contratação directa entre comercializadores e consumidores, utilizando os contratos bilaterais físicos. Estes contratos permitem a negociação dos preços de electricidade entre os comercializadores e os consumidores. Actualmente, existem várias ferramentas computacionais para fazer a simulação de mercados de energia eléctrica. Os simuladores existentes permitem simulações de transacções em bolsas de energia, negociação de preços através de contratos bilaterais, e análises técnicas a redes de energia. No entanto, devido à complexidade dos sistemas eléctricos, esses simuladores apresentam algumas limitações. Esta dissertação apresenta um simulador de contratos bilaterais em mercados de energia eléctrica, sendo dando ênfase a um protocolo de ofertas alternadas, desenvolvido através da tecnologia multi-agente. Em termos sucintos, um protocolo de ofertas alternadas é um protocolo de interacção que define as regras da negociação entre um agente vendedor (por exemplo um retalhista) e um agente comprador (por exemplo um consumidor final). Aplicou-se o simulador na resolução de um caso prático, baseado em dados reais. Os resultados obtidos permitem concluir que o simulador, apesar de simplificado, pode ser uma ferramenta importante na ajuda à tomada de decisões inerentes à negociação de contratos bilaterais em mercados de electricidade.

A decision-support system based on particle swarm optimization for multiperiod hedging in electricity markets

This paper proposes a particle swarm optimization (PSO) approach to support electricity producers for multiperiod optimal contract allocation. The producer risk preference is stated by a utility function (U) expressing the tradeoff between the expectation and variance of the return. Variance estimation and expected return are based on a forecasted scenario interval determined by a price range forecasting model developed by the authors. A certain confidence level is associated to each forecasted scenario interval. The proposed model makes use of contracts with physical (spot and forward) and financial (options) settlement. PSO performance was evaluated by comparing it with a genetic algorithm-based approach. This model can be used by producers in deregulated electricity markets but can easily be adapted to load serving entities and retailers. Moreover, it can easily be adapted to the use of other type of contracts.