A tribute to Earl A. Thompson and, in his own words, a summary of his general economic and social theory

Brilliant but little known, in part because his style was dense and crucial papers unpublished, Earl Thompson reformulated standard theory to achieve policy relevance, focusing on significant rent-seeking inefficiencies stemming from private information and transaction costs. Drawing on history, he showed a vast array of institutions to be efficient which economists had previously found to be inefficient, modeled governments and their nature, defined government’s functions, and showed why dominant states rise and fall.     

Institutions, Ideology, and the Tragedy of the Commons: West Texas Groundwater Policy

West Texas is the setting for an unintended experiment in commonsresource management. Dispersed, autonomous, local groundwaterdistricts use nonregulatory strategies to promote conservationand groundwater quality. The central force driving this organizationalform appears to be ideological. West Texans seek alternativesto state management of groundwater pumping. This study useskey-informant interviews to evaluate the strength of ideologyin explaining West Texas groundwater policy and to provide atheoretical framework for discussing the importance of the "localsolution.’ Time-series data substantiate the claim thatlocal groundwater districts succeed in slowing depletion rates.     

Interests, Institutions, and the Reliability of International Commitments

One feature associated with democratic governance is frequent leadership turnover. While the ease of replacing leaders improves accountability, it may impede the ability of democracies to make credible long-term international commitments. Using newly collected data that identify cases in which leaders who derive their support from different domestic interests come to power, we evaluate the effects of changes in domestic political leadership on one important aspect of foreign policy—decisions to maintain military alliances. An analysis covering bilateral alliances between 1919 and 2001 reveals that changes in societal supporting coalitions in nondemocratic states are associated with decisions to abrogate alliances prior to their scheduled end dates, but changes in societal supporting coalitions in democracies have no effect on the probability of premature alliance termination. We conclude that international cooperation is sensitive to changes in core supporting coalitions, but that this effect is moderated by democratic political institutions.     

Lies, Defection, and the Pattern of International Cooperation

This article characterizes how incentives to lie affect international cooperation and the design of cooperation agreements. I study the optimal structure of cooperation agreements in an environment where the costs of cooperation fluctuate over time. Cooperation is complicated by the fact that the costs of cooperation are private information and participants can benefit from lying about them. When the extent of asymmetries of information between the cooperating governments can be measured in terms of the transparency of the political process, democracies face greater contracting opportunities than authoritarian regimes. However, this article shows that even under asymmetries of information, a limited extent of cooperation can be achieved when the design of cooperation agreements recognizes incentives to lie.     

Markets and democracy: A critique of Charles E. Lindblom

Abstract

Using a 1988 Home Box Office (HBO) series as a point of departure this paper examines the state of mass‐mediated politics. Examples from Tanner ‘88 reveal unmistakable signs of contemporary electoral campaigns ‐ stage management, monitored public opinion, and mythinformation. Pseudo‐events replace actual political circumstances to create politically useful images. The consciousness industry, in creating almost universal commodification, has fused propaganda and advertising in the selling of products and politics. Emphasis on spectacle and happening, immediate delivery, and manipulation of demand represent important changes in the way that capitalism and democracy work. A new mode of information in which social relations are mediated by electronic communication systems is being created. But saturation coverage in the media has not created a better‐informed, more active electorate. Rather, it has reduced the political process to a level of mindless slogans, trivial issues, and meaningless simulations.     

Cooperation of government,science and industry in R & D—A systems view

The paper investigates the roles of government, science and industry in meeting the R & D requirements of our society. It considers the present state of the art of the cooperation involved, emphasizes the need for integrated planning, programming, and budgeting in research, development and technology, and comments on the European technology crisis.This paper presented in part at the First International R & D Management Conference Vienna, October 1970. The paper represents the personal views of the author. Full address: Adenauer-Allee 120, 5300 Bonn, Germany.