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HERAKLITES | heraklites.blogspot.com Reviews
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Philosophy, Politics, Economics
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HERAKLITES | heraklites.blogspot.com Reviews

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Philosophy, Politics, Economics

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1

HERAKLITES: Vertical mergers and the nature of the firm (part 2)

http://heraklites.blogspot.com/2008/07/vertical-mergers-and-nature-of-firm.html

Philosophy, Politics, Economics. Vertical mergers and the nature of the firm (part 2). The internal dynamics of the firm. It should be stressed that we assume that separate managers are needed to choose [investments for the two firms or divisions] under any ownership structure. Ex ante investments . cannot be specified in the contract either because they are too complex to be described or because they stand for nonverifiable managerial effort decisions. Is a private benefit, accruing directly to firm i&#...

2

HERAKLITES: Credible threats, moral hazard and Northern Rock

http://heraklites.blogspot.com/2007/10/credible-threats-moral-hazard-and.html

Philosophy, Politics, Economics. Credible threats, moral hazard and Northern Rock. Entry deterrence' is an example of trying to manipulate a rival player's moves. In this case, it involves an incumbent firm trying to prevent the entry of potential rivals into a market. Ie prior to the other player’s move) and. In the sense of surplus) capacity. Is not an effective way of deterring entry; in fact it represents a non-credible-threat. An incumbent would never expand capacity in response to entry, he wou...

3

HERAKLITES: The theory of the second-best

http://heraklites.blogspot.com/2007/11/theory-of-second-best.html

Philosophy, Politics, Economics. The theory of the second-best. One of the few provable useful results in economics is the one about markets producing an optimal outcome. If all goods and services in an economy are traded via perfectly competitive free markets, the resulting outcome is efficient (i.e. Pareto-efficient), i.e. there is no other possible arrangement of available resources in which some would be better off and no one would be worse off. That is the case — i.e. it is better to d...This is som...

4

HERAKLITES: October 2007

http://heraklites.blogspot.com/2007_10_01_archive.html

Philosophy, Politics, Economics. Credible threats, moral hazard and Northern Rock. Entry deterrence' is an example of trying to manipulate a rival player's moves. In this case, it involves an incumbent firm trying to prevent the entry of potential rivals into a market. Ie prior to the other player’s move) and. In the sense of surplus) capacity. Is not an effective way of deterring entry; in fact it represents a non-credible-threat. An incumbent would never expand capacity in response to entry, he wou...

5

HERAKLITES: May 2007

http://heraklites.blogspot.com/2007_05_01_archive.html

Philosophy, Politics, Economics. Gordon Brown will shortly become Britain's unelected premier. He has promised to introduce more "transparency" into government. Concepts such as transparency and opennness were also popular with the current incumbent Tony Blair. The present administration introduced the Freedom of Information Act. But is "transparency" an important goal? Do voters need to know about what goes on behind the scenes? Can the concept of "transparency" be used against. Does a culture of inform...

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HERAKLITES

Philosophy, Politics, Economics. Vertical mergers and the nature of the firm (part 2). The internal dynamics of the firm. It should be stressed that we assume that separate managers are needed to choose [investments for the two firms or divisions] under any ownership structure. Ex ante investments . cannot be specified in the contract either because they are too complex to be described or because they stand for nonverifiable managerial effort decisions. Is a private benefit, accruing directly to firm i&#...

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