Simulating the impact of regulation changes on the market for prostitution services

The paper draws on recent research on the economics of prostitution focussing on the role of stigma in shaping the interaction between demand and supply and the resulting sub-markets in which this activity is typically organised. Here we extend the framework to consider the role of reputation and stigma in determining policy decisions regarding the regulation of prostitution and show how sub-optimal outcomes (from the point of view of the welfare of sex workers) may prevail.     

The market for social norms

This article presents a semirigorous model in which a new normarises out of the workings of a market for norms. Change istriggered by a shift in either cost-benefit conditions or groupcomposition. Because individuals are heterogeneous in importantrespects, they respond differently to these triggering events.The first persons to supply new norms generally are individualswho have either superior technical knowledge of cost-benefitconditions, superior social knowledge of group dynamics, orspecial endowments that provide them with unusually high tangiblebenefits from norm reform. Members of the social audience observethe competing efforts of these norm suppliers and reward themost meritorious ones by conferring on them either esteem or,according to an alternative conception, new exchange opportunities.Under optimal conditions, members of the audience - key participantsin the demand side of the market for norms - do not free-ridebecause they incur no net costs when conferring their rewards.     

The impact of the US legislation on company measures of control and prevention

The spectacular business scandals in recent years have led both the legislative and business companies to rethink and redesign their strategies. This article analyzes the worldwide impact of reforms in economic crime legislation emanating from the USA. Empirical data are reported showing that the US regulations are generating a spillover effect spreading beyond its sphere of operation. It is particularly notable that international stock-exchange-listed companies are orienting themselves increasingly toward the legal standards of the USA. Translated from the German by Jonathan Harrow, Bielefeld.

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Regulatory policy and information deficiencies in the market for mental health services

This paper addresses issues related to the regulation of the delivery of mental health services. The focus is primarily on regulations that are aimed at dealing with the consequences of imperfect information in the marketplace. The paper reviews and assesses what is known about the impact of regulations on efficiency and equity. One conclusion is that we know a fair amount about impacts of regulation on prices for mental health service and very little about effects on quality of care. A research agenda is proposed based on the knowledge available in 1988.     

Cooperation in the shadow of regulatory competition: the case of asylum legislation in Europe

Traditional analysis considers that the granting of protection to refugees is an international public good, and thus explains both the heterogeneousness in refugee protection in Europe and the spiral that has hardened the EU Member States’ asylum legislation from the mid-1980s onwards as the result of free riding in the provision of the good. In contrast, the paper considers that the heterogeneousness in refugee distribution is best explained by the joint product model and that the spiral of restriction is best explained by the common pool resource model and regulatory competition theory. The paper explains, and gives empirical evidence of the emergence and development of a competitive game among the EU Member States, and shows the result and the consequence of this upon cooperative attempts among States.     

The impact of health maintenance organizations and competition on hospitals in Minneapolis/St. Paul

The Healthcare Educational and Research Foundation (HERF) in Minneapolis undertook a two-year research project to study the effects of health maintenance organizations (HMOs) and competition on the hospital industry in Minneapolis/St. Paul. This article summarizes HERF's major findings surrounding three key questions: (1) do the HMOs in Minneapolis/St. Paul use fewer hospital resources relative to conventional payers?; (2) do recent overall community trends in inpatient use suggest evidence of hospital utilization-reducing effects attributable to HMOs?; and (3) given the highly visible competitive process among Minneapolis/St. Paul providers, do hospital cost and revenue data suggest any evidence of cost-containment? The findings (based on data through 1982) indicate that for comparable patients, Twin Cities HMOs appear to use fewer medical care resources per hospitalized patient. There was, however, no clear evidence of community-wide, utilization-reducing effects directly attributable to the "competitive effect" of HMO introduction and development in the market. In addition, there was no empirical evidence that HMOs (which had enrolled 25 percent of the consumer market by 1982), or other large buyers of inpatient services, have selected hospitals on the basis of price as hypothesized by competition advocates.     

The impact of economic theories on the law in market relations

The impact of economic theories on legal development, thinking and practice is undeniable. This is particularly true for neo-classical and institutional economics. Neo-classical economics are based on model assumptions of human behaviour such as pursuit of personal advantage, individualistic goals, complete information and at the same time law obedience which are the foundations of the functioning of the market mechanisms. The assumption leads to an almost mystical belief in the self-regulatory power of the market and a strong disdain and disapproval of the State. The concepts of a minimal State and de-regulation of all social relations follow from there. This article argues that model assumptions are valid scientific tools, as long as they are not taken to reflect the real world which is populated by real people that are not necessarily behaving like homines oeconomici. Preaching de-regulation and the dismissal of the State can prove simplistic and even dangerous and may lead to financial and economic crises like the ones witnessed in recent years. Institutional economics part from these empirical findings. They do not question individualism and the pursuit of egoistic objectives of market-participants, but they insist on inherent risks of this mechanism which stems from opportunistic behaviour, lack of information and transparency and the limits of trust. Property economists deduct from there that sustainable and dynamic economic development is unthinkable without well defined property title, the distinction of property and possession and credit securities. These institutions cannot be self-regulatory but need a clear legal frame, in other words rules established by a State. Transaction costs economists understand the danger of opportunistic behaviour and a corresponding systemic lack of trust in the negotiation, conclusion and execution of contracts. They underline the necessity of institutions which are capable of limiting these dangers and thus reducing transaction costs. Institutions may be customs, informal arrangements and formal law. At the end two examples are presented-real estate transactions and post-patriarchal family relations-to test the utility of these considerations.     

Confidential service contract promotes competition in the European shipping market

In November 2002, the European Commission granted an individual exemption for the revised trans-atlantic conference agreement (TACA) after it held that provisions in the agreement regarding service contracts and multi-carrier service contracts to be outside the scope of the block exemption. The elimination of conference’s role of enforcing tariff rates should improve slot utilization by promoting efficient pricing. This paper develops a backhaul pricing model to investigate the effect of confidential service contracts on the structure of liner market. In view of the increasing gap between head haul and backhaul freight rates in the European Union after year 2002, a linear joint pricing equation is numerically applied to the homebound and outbound freight rate indices at ports of Antwerp/Hamburg. This study finds that these freight rate indices moved in the opposite directions as it was predicted by the Smith’s condition of joint product, and the European liner market has become competitive after November 2002.     

Federal criminal justice legislation and the post-World War II social structure of accumulation in the United States

This article explores the relationship between the political economy and the criminal justice system through an analysis of the impact of long economic cycles in the social structure of accumulation on U.S. federal criminal justice legislation from 1948 to 1987. An analysis is conducted which compares both qualitative and quantitative changes in these legislative acts from the period of economic expansion (1948 to 1967) to the period of contraction (1968 to 1987). The research findings of this investigation indicate that mechanisms of social control intensify during periods of prolonged economic contraction; however, the concept of an exceptional state, with a proportional increase in more coercive crime control strategies, is somewhat challenged.Earlier versions of this paper were presented at meetings of the American Society of Criminology (1988, 1989, 1990).     

Mandating interoperability of interpersonal communications services in an ecosystems competition context

With the adoption of Article 7 of the Digital Markets Act, the EU has taken a progressive approach to mandating horizontal interoperability of number-independent interpersonal communications services. This legislative measure addresses the structural competition challenge posed by direct network effects, which tend to lock users into established messaging platforms. However, it is not entirely clear how, if at all, the Commission should implement this interoperability mandate. To shed light on this matter, we present an ecosystems competition context where these messaging services transition into digital ecosystems to create value from user-generated data and attention. Within this context, we find interoperability mandates like Article 7 a plausible solution to the structural competition problem, although much is yet to be done to sharpen these mandates against the intricate inter-ecosystem dynamics and to empower multi-homing users in a post-interoperability world. Achieving this goal requires collaborative efforts not only from sector regulators responsible for overseeing these mandates but also from antitrust and data protection authorities.     

Social workers' and police officers' perception of victim credibility: Perspective-Taking and the impact of extra-Evidential factors

Abstract

The credibility of a victim can be influenced by factors that objectively should not have any impact on the judgemental process. The present two studies examine the influence of two such factors: (1) the non-verbal behavior of the victim, and (2) the ethnic identity of the victim, in the context of two different perspectives of observation (victim focused or truth detecting). Study 1 focused on perspective taking, and was included for the methodological reason that in Study 2 perspective taking was necessarily confounded with subject gender. Study 1 indicates that the perspective of the observer has a significant influence on the perceived credibility of the victim and the interpretation of non-verbal behavior. In Study 2 perspective-taking was manipulated more realistically by including a sample of social workers and of police officers. The other two factors were manipulated in the videotapes. Results suggested that the white victim exhibiting white non-verbal behavior, judged by a social worker, is perceived as more credible and has less chance of secondary victimisation. The black victim however, exhibiting black non-verbal behavior, who is judged by a police-officer, is perceived as least credible and runs a higher chance of secondary victimisation.