Tacit collusion and liability rules

This paper demonstrates that the likelihood of tacit collusion in a given oligopolistic industry may depend on the kind of liability rule applied to the industry. We study typical settings for the analysis of product liability and environmental liability. For the latter, it is established that tacit collusion is more likely under strict liability than under negligence. However, the two liability rules are equivalent with regard to their effects on tacit collusion in the model pertaining to product liability. This context-dependent impact on tacit collusion can be traced back to a difference in the shape of firms’ cost functions.     

Managementreformen in internationalen Organisationen: Eine vergleichende Analyse der Europäischen Kommission und des OECD-Sekretariats

The article comparatively investigates reforms of human resource management in the European Commission and the OECD Secretariat. It analyzes to what extent both organizations have adjusted their respective structures towards the ideal type of the so-called New Public Management (NPM). The empirical findings show that reforms towards NPM are more pronounced in the Commission than in the OECD Secretariat. These findings are surprising for two reasons. First, it seems rather paradoxical that the OECD as central promoter of NPM at the international level lags behind the global trend when it comes to reforming its own structures. Second, this result is in contradiction with theoretical expectations, as they can be derived from theories of institutional isomorphism. To nevertheless account for the surprising results, it is necessary to modify and complement existing theories especially with regard to the scope conditions of their causal mechanisms.     

The puzzling case of Jimmy “the Greek”

His previous contribution to Society,“Sexual Harassment and the Law,” appeared in the May/June 1991 issue. The author wishes to acknowledge the generous support of the Sarah Scaife Foundation and the John M. Olin Foundation.