The Secret Life of Mundane Transaction Costs

Transaction costs, one often hears, are the economic equivalent of friction in physical systems. Like physicists, economists can sometimes neglect friction in formulating theories; but like engineers, they can never neglect friction in studying how the system actually does let alone should work. Interestingly, however, the present-day economics of organization also ignores friction. That is, almost single-mindedly, the literature analyzes transactions from the point of view of misaligned incentives and (especially) transaction-specific assets. The costs involved are certainly costs of running the economic system in some sense, but they are not obviously frictions. Stories about frictions in trade are not nearly as intriguing as stories about guileful trading partners and expensive assets placed at risk. But I will argue that these seemingly dull categories of cost what Baldwin and Clark (2003) call mundane transaction costs actually have a secret life. They are at least as important as, and quite probably far more important than, the more glamorous costs of asset specificity in explaining the partition between firm and market. These costs also have a secret life in another sense: they have a secret life cycle. I will argue that these mundane transaction costs provide much better material for helping us understanding how the boundaries among firms, markets, and hybrid forms change over time.

Lin KERNS, The secret of secrets (Secreta secretorum). A modern translation, with introduction, of “The governance of princes", with a foreword by Elizabeth Matthew, Lewiston (New York), The Edwin Mellen Press, 2008, ISBN 978-0-7734-5118-6, 168 pp.

Fil: Cuccia, Emiliano Javier.

Lecturas sobre The Foundation. A Great American Secret (2007), Joel L. Fleishman, New York, Public Affairs

Fil: Quesada, Fernando. Universidad Nacional de Cuyo. Facultad de Filosofía y Letras. Instituto Multidisciplinario de Estudios Sociales Contemporáneos

Secret and power in social life

Secret and power constitute two fundamental instances of the social world. Secret takes care of the concealment of things and of social processes. Secret is also a power device. Power is the social capacity to do, create, not doing and stop from doing. Secret and power get mutual feedback. Power uses the secret to protect his potential, be it what may, to increment its operative strength. Secret uses the power to achieve its aims and proposals. Social sciences seem to ignore the huge explanatory capacity of these two interrelated concepts, and even more, their powerful intervention in societies.

Secret and power in social life

Secret and power constitute two fundamental instances of the social world. Secret takes care of the concealment of things and of social processes. Secret is also a power device. Power is the social capacity to do, create, not doing and stop from doing. Secret and power get mutual feedback. Power uses the secret to protect his potential, be it what may, to increment its operative strength. Secret uses the power to achieve its aims and proposals. Social sciences seem to ignore the huge explanatory capacity of these two interrelated concepts, and even more, their powerful intervention in societies.

Secret and power in social life

Secret and power constitute two fundamental instances of the social world. Secret takes care of the concealment of things and of social processes. Secret is also a power device. Power is the social capacity to do, create, not doing and stop from doing. Secret and power get mutual feedback. Power uses the secret to protect his potential, be it what may, to increment its operative strength. Secret uses the power to achieve its aims and proposals. Social sciences seem to ignore the huge explanatory capacity of these two interrelated concepts, and even more, their powerful intervention in societies.

A journey through the secret history of the Flying Geese Model

Economic development in East Asia is characterized by the sequential "take-off" of member countries. This multi-tiered economic development in East Asia is often termed the “Flying Geese” pattern of economic development. However, some authors argue that the traditional Flying Geese pattern is not applicable to some industries such as electronics. Here, Japan may no longer be the sole "leading goose", with "followers" such as China (now producing cutting-edge products) having "caught-up". Does this mean that the Flying Geese Model has become "obsolete" in the 21st century? The main objective of this paper is to clarify the two concepts of Flying Geese which now seem confused: (1) application of the pattern of economic development in one specific country, and (2) application of the pattern of economic development to multiple countries in sequence. This paper provides validity checks of Flying Geese Models after differentiating these two concepts more clearly

Building Trust for Lambda-Congenial Secret Groups

Establishing trust while preserving privacy is a challenging research problem. In this paper we introduce lambda -congenial secret groups which allow users to recognize trusted partners based on common attributes while preserving their anonymity and privacy. Such protocols are different from authentication protocols, since the latter are based on identities, while the former are based on attributes. Introducing attributes in trust establishment allows a greater flexibility but also brings up several issues. In this paper, we investigate the problem of building trust with attributes by presenting motivating examples, analyzing the security requirements and giving an informal definition. We also survey one of the most related techniques, namely private matching, and finally present solutions based on it.

The secret to legal foretelling: generic and inter-generic aspects of vagueness in contracts, patents and regulations

In this genre analysis research paper, we compare U.S. patents, contracts, and regulations on technical matters with a focus upon the relation between vagueness and communicative purposes and subpurposes of these three genres. Our main interest is the investigation of intergeneric conventions across the three genres, based on the software analysis of three corpora (one for each genre, 1 million words per corpus). The result of the investigation is that intergeneric conventions are found at the level of types of expressed linguistic vagueness, but that intergeneric conventions at the level of actual formulations are rare. The conclusion is that at this latter level the influence from the situation type underlying the individual genre is more important than the overarching legal character of the genres, when we talk about introducing explicit vagueness in the text.

Analysis of a rate-adaptive reconciliation protocol and the effect of leakage on the secret key rate

Quantum key distribution performs the trick of growing a secret key in two distant places connected by a quantum channel. The main reason is so that the legitimate users can bound the information gathered by the eavesdropper. In practical systems, whether because of finite resources or external conditions, the quantum channel is subject to fluctuations. A rate-adaptive information reconciliation protocol, which adapts to the changes in the communication channel, is then required to minimize the leakage of information in the classical postprocessing. We consider here the leakage of a rate-adaptive information reconciliation protocol. The length of the exchanged messages is larger than that of an optimal protocol; however, we prove that the min-entropy reduction is limited. The simulation results, both in the asymptotic and in the finite-length regime, show that this protocol allows to increase the amount of a distillable secret key.