Procompetitive dual pricing

We analyze the procompetitive effects of dual pricing, that is, input market price discrimination. An upstream firm has an incentive to maintain competition downstream which is realized by selling at an advantageous price to an inefficient downstream firm when discrimination is possible while it would exit under uniform pricing. We augment the exit issue into existing frameworks of Katz (Am Econ Rev 77:154–167, 1987), DeGraba (Am Econ Rev 80:1246–1253, 1990), and Yoshida (Am Econ Rev 90:240–246, 2000) which allows us to show that price discrimination in intermediary goods markets tends to have positive effects on allocative, dynamic and productive efficiency, respectively. In contrast, a discrimination ban tends to facilitate exit of relatively inefficient firms, thereby strengthening downstream market concentration.     

Optimal liability for optimistic tortfeasors

As Alicke and Govorun (The self in social judgment, Psychology Press, New York, 2005, p. 85) observed, “most people are average, but few people believe it.” Optimism and other forms of inflated perception of the self lead parties to exercise suboptimal precautions when undertaking risky activities and often undermine the incentive effects of tort rules. In this paper, we show that the presence of optimism undermines several critical assumptions, upon which law and economics scholars have relied when modeling the incentive effects of tort law. We construct a model representing the incentives of “optimistic” tortfeasors and victims, and consider mechanisms for mitigating the effects of biased decision-making. We show that in the presence of optimism, comparative negligence rules are preferable to contributory negligence rules (i.e., the traditional equivalence between contributory and comparative negligence does not hold). Further, we discover the surprising conclusion that the most effective way to correct optimism may often simply be to “forgive” it, shielding optimistic individuals from liability, rather than holding them liable for the harms they cause.     

Innovation strategies of firms: What strategies and why?

This paper analyzes various innovation strategies of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a 10-year period, i.e. between 2002 and 2012. We distinguish between sixteen innovation strategies, which compose of Schumpeterian four types of innovations (process, product, marketing, and organizational) plus various combinations of these four types. First, we find that firms are not homogenous in choosing innovation strategies, instead, they have a wide range of preferences when it comes to innovation strategy and some of the innovation strategies are “commonly” used among firms. Second, using Transition Probability Matrix, we found that firms also persist to have such a diverse innovation strategy preferences. Finally, using Multinomial Logit model, we explained the determinant of each and every innovation strategies, while we gave special attention to the commonly used innovation strategies among firms.     

Entrepreneurship ecosystems: an agent-based simulation approach

Knowledge acquisition and development of capabilities constitutes a key perspective in studies regarding the formation of new ventures. When examining entrepreneurship ecosystems, we find that the composition of a region influences the new knowledge acquired by the venture. The main aim of this study is to examine the influence of the new venture, the entrepreneur’s social capital, and the firm performance on the new venture’s knowledge acquisition activities. In particular, the study examines how the institutional context of a region influences new ventures’ knowledge acquisition actions during its growth, and in turn the level of sustained entrepreneurial activity within the region. The paper focuses on the formation of alliances by new ventures, one particular form of knowledge acquisition process that has been established as critical to new venture success in the high technology sector. The mechanisms for acquiring and transforming knowledge have the greatest impact on new venture formation, and in this context, the concepts of strategic knowledge arbitrage and strategic knowledge serendipity (SKARSE?) are validated through an agent-based simulation model. The main results focus on the effects of interactions between entrepreneurs and institutions in the process of new venture formation from a knowledge creation, dissemination, and absorption perspective.     

Workers’ risk underestimation and occupational health and safety regulation

The standard treatment of occupational risk in the labour market is conducted in terms of the theory of compensating wage differentials, the basic characteristic of which is that workers can fully estimate actual occupational risks. However, research in cognitive psychology, and recent advances in economic psychology, suggest that individuals consistently underestimate risks associated with accidents. In this paper, we discuss the case when the workers systematically underestimate job risks. After presenting the standard treatment of occupational risks, and of health and safety at work regulation, we then proceed to incorporate the idea of job risk underestimation. The paper discusses the types and impact of regulation on health and safety effort in a simple framework in which workers’ beliefs concerning accident risks also play a role. The paper shows that a particular type of regulatory intervention is necessary for the risk underestimating workers not to suffer a welfare loss.     

Late Modern Ambiguity and Gothic Narratives of Justice

This paper develops a Cultural Criminology of the Late Modern Gothic. It discusses how representations of criminal justice today are often framed by and narrated through a Gothic imagination. Often, and especially by those who have already noted its criminological significance, this trend is considered a cultural support for Punitive Populism and the demand for vindictive sanctions especially against ‘sensational’ offenders. Although such interpretations are partially valid they do not fully address the entire scope of the Late Modern Gothic—especially when it is invoked as a cultural support for transgression or resistance against the situated structures of (Late) Modernity. By discussing a number of recent media representations but particularly an episode from a popular TV serial, the paper indicates that the contemporary Gothic is now as much a source of subjective identification as it is an imagination of the cultural other: an identification with and not just against that which transcends cultural borders and the culturally ambiguous. Cultural Criminology is here employed to question assumptions that the ‘public mind’ is uniformly punitive and unable or unwilling to tolerate any form of criminal transgression. In responding to popular demands framed by the Gothic imagination, formal criminal justice interventions need not, therefore, necessarily assume a vindictive tone. A Humanistic Cultural Criminological approach to Late Modern Gothic transgressiveness can help reveal cultural complexities too easily ignored by conventional models of criminological analysis.     

Just-in-Time Justice: Globalization and the Changing Character of Law,Order, and Power

This article examines how economic globalization has dialectically interacted with the nation-state and legal order to facilitate the production of “just-in-time justice”—the increasingly flexible character of law, order, and power. Utilizing Chambliss’s analytic strategy, particularly his dialectical approach to lawmaking, I first examine the relationship between the global social order, economic globalization, and the changing architecture of nation-states. I then explore ways that the legal order has been flexibilized, including the creation of “states of exception,” the privatization of social control functions of the state, the development of transnational spaces for governance, and the widespread use of surveillance. My analysis of these transformations suggests that the greatest danger in the contemporary moment may be what we do not know, what is hidden from public accountability, beyond the public gaze. Importantly, this analysis also highlights that law continues to matter—or else there would not be such a press to ensure its disappearance.     

Thinking Critically About Rural Crime: The Influence of William J. Chambliss

William J. Chambliss (Bill) is well-known for his path-breaking theories of lawmaking and for his innovative research on state-organized crime. However, the fact that his study of the original vagrancy laws marked the birth of rural critical criminology has gone unrecognized by criminologists. The main objective of this article is twofold: (1) to show how Bill helped shape contemporary rural critical criminology and (2) to provide suggestions for further critical theoretical and empirical work on rural crime and social control.