The “invisible hand” of the market could be giving you a sharp slap more often than not, according to the Nobel laureates George A. Akerlof and Robert J. Shiller.
Stewart Macaulay – Professor of Law Emeritus, University of Wisconsin Law School – occupies a unique place in the evolution, awareness and acceptance of relational contracting. In fact one might safely argue that he helped set relational contract theory in motion in 1957, with the publication of his famous article, ‘Non-Contractual Relations in Business: A Preliminary Study.’ He was 26.
Economist and philosopher Deirdre McCloskey has some thought-provoking and highly nuanced takes on innovation and ethics in the commercial arena.
How about this for starters: capitalism is innovation, in her estimation. And she contends that capitalism/innovation backed by liberal economic ideas “has made billions of poor people pretty well off, without hurting other people.” Did I mention she is also controversial?
Jean Tirole, the French professor of economics who recently received the Nobel Prize, is one of the most influential modern economists for his extensive theories and rigorous mathematic analysis of strategic behaviour and information economics in what is known as “Industrial Organisation” (IO).
As part of his research, he studied firms and markets where a firm had “power” to dominate the market and perhaps abuse that power.
At some point a buyer and supplier will talk about pricing, maybe not right away – but it’s always the elephant in the room. Pricing is also potentially the most volatile topic, and could be a deal-breaker if the negotiation is not handled correctly.
Do you have one of those really tough business problems that seems to plague you? No matter what you try, nothing seems to solve the problem?
I’ve been a game theory fan for many years, particularly as it relates to showing that cooperative behavior indeed creates true “win-win” situations. So I was excited to read a work of University of Pennsylvania professors Alexander J. Stewart and Joshua B. Plotkin, ‘From Extortion to Generosity, Evolution in the Iterated Prisoner’s Dilemma‘, published recently in the Proceedings of the National Academy of Science (PNAS).
This month Academics of Outsourcing highlight goes to professors Jeffrey H. Dyer and Harbir Singh for their influential work on the topic on what they call the “relational view,” of working in highly strategic alliances.
What can a professor who teaches democratic theory tell us about collaborative, non-coercive business and outsourcing relationships?
This month’s blog honours best-selling author Cynthia Barton Rabe, author of The Innovation Killer. Tragically, Rabe passed away in 2011, killed by a hit and run driver at age 47—just five years after her revolutionary book on innovation was published.