free-rider problem

description: consumption of goods & services without payment

108 results

pages: 539 words: 139,378

The Righteous Mind: Why Good People Are Divided by Politics and Religion
by Jonathan Haidt
Published 13 Mar 2012

In what might be the pithiest and most prescient statement in the history of moral psychology, Darwin summarized the evolutionary origin of morality in this way: Ultimately our moral sense or conscience becomes a highly complex sentiment—originating in the social instincts, largely guided by the approbation of our fellow-men, ruled by reason, self-interest, and in later times by deep religious feelings, and confirmed by instruction and habit.18 Darwin’s response to the free rider problem satisfied readers for nearly a hundred years, and group selection became a standard part of evolutionary thinking. Unfortunately, most writers did not bother to work out exactly how each particular species solved the free rider problem, as Darwin had done for human beings. Claims about animals behaving “for the good of the group” proliferated—for example, the claim that individual animals restrain their grazing or their breeding so as not to put the group at risk of overexploiting its food supply.

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There is now a great deal of evidence that religions do in fact help groups to cohere, solve free rider problems, and win the competition for group-level survival. The clearest evidence comes from the anthropologist Richard Sosis, who examined the history of two hundred communes founded in the United States in the nineteenth century.30 Communes are natural experiments in cooperation without kinship. Communes can survive only to the extent that they can bind a group together, suppress self-interest, and solve the free rider problem. Communes are usually founded by a group of committed believers who reject the moral matrix of the broader society and want to organize themselves along different principles.

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The question of free riders naturally arises; see Dawkins 1976. Wouldn’t the best strategy be to hang back and let others risk their lives standing up to dangerous bullies? The free rider problem is quite pressing for species that lack language, norms, and moralistic punishment. But as I’ll show in the next chapter, its importance has been greatly overstated for humans. Morality is, in large part, an evolved solution to the free rider problem. Hunter-gatherer groups and also larger tribes can compel members to work and sacrifice for the group by punishing free riders; see Mathew and Boyd 2011. 37. Leaders often emerge in the struggle against tyranny, only to become tyrants themselves.

pages: 283 words: 81,163

How Capitalism Saved America: The Untold History of Our Country, From the Pilgrims to the Present
by Thomas J. Dilorenzo
Published 9 Aug 2004

All of this enabled entrepreneurs to overcome the free-rider problem and build a private transportation network. Ingenious early American transportation entrepreneurs even invented a kind of privatized “law of eminent domain” whereby rights of way were paid for with shares of stock in the turnpike companies. The value of the property was determined not by government assessors—who would seize private property to build government-owned roads—but by freedom of exchange in the free market. PRIVATE-SECTOR EFFICIENCY Overcoming the supposed free-rider problem, Americans in the first half of the nineteenth century constructed a private transportation network that was undoubtedly built smarter, faster, and more efficiently than it would have been if it had been a typical “public works” project.

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To further their case that the government should take an ever more active role in directing the American economy, the anticapitalists have foisted on the American people a number of myths about capitalism’s role in this country’s history. Many of their bizarre claims have, unfortunately, become an accepted part of the history of our country. It is time to debunk these myths. CHAPTER THREE ———— How Capitalism Saved the Pilgrims The Pilgrims had encountered what is called the free-rider problem [which] is difficult to solve without dividing property into individual or family-sized units. And this is the course of action that William Bradford wisely took. —Tom Bethell, The Noblest Triumph (1998) WHEN THE first settlers came to America in the early seventeenth century, the word capitalism had not yet been coined.

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Jefferson, Monroe, and Madison believed that taxpayer subsidies to businesses were unconstitutional; Calhoun led the fight against using protectionist tariffs to fund the subsidies; and Jackson as president defeated the effort to recharter the Bank of the United States and vetoed numerous internal improvement bills. The basic economic argument in favor of government subsidies for canal or road building was the so-called free-rider problem. According to this argument, individuals are not sufficiently motivated to contribute voluntarily to the provision of “public goods” by which everyone benefits. Thus, the story goes, such projects as road and canal building will be inherently underfunded if we rely totally on private financing.

pages: 288 words: 76,343

The Plundered Planet: Why We Must--And How We Can--Manage Nature for Global Prosperity
by Paul Collier
Published 10 May 2010

If they do I am safe regardless of what I do, and if they don’t I will fry regardless of what I do. Either way, I might as well avoid the cost of reducing my carbon emissions. Government is the key solution to the free-rider problem. Within a country, a government can force a change of behavior through taxes and regulations. But carbon emissions are a global problem and so the free-rider problem kicks in at the level of bargaining between governments. There is plenty of scope for free-riding among the 194 countries of the world. Whether or not Guinea Bissau agrees to curb its carbon emissions will make no difference to global carbon emissions, and no difference to whether other governments agree to curb their carbon emissions.

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The world would fry because of the plunder by the G163. What I have sketched is a weakest link problem: any solution is only as effective as the behavior of the least cooperative country. The problem for the G5 is therefore to provide some combination of carrots and sticks that addresses the free-rider problem in the G163. The carrots and sticks do not have to be the same everywhere. Obviously, the G163 would prefer carrots to sticks. However, there is a good reason sticks are likely to offer a better approach. The problem with the carrot approach is that the negotiating range is vast. The G5 might start by offering to cover the full cost of reducing carbon emissions.

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Aid will need to be intelligent and it will need to be generous—neither characteristic having been notably prominent in aid to date. (For the moment I will park discussion of the ethics of using aid to force compliance with global carbon standards and turn to the other countries that might potentially free-ride.) The low-income countries are not the core of the free-rider problem. Between them they do not emit much carbon, and even if they offered global industry a haven from action against carbon other aspects of their business climate might deter relocation. The key problem group is the emerging market countries, which collectively emit a lot of carbon. They offer credible havens for the evasion of global carbon policy, and do not receive significant amounts of aid.

The Limits of the Market: The Pendulum Between Government and Market
by Paul de Grauwe and Anna Asbury
Published 12 Mar 2017

In order to buy a public good, a group of individuals must come together to make a collective decision, which in turn must lead to an agreement as to the question of how many public goods there should be (for example how many roads to build) and how the costs should be distributed. A collective decision of this kind is difﬁcult to achieve voluntarily due to what economists call the ‘free rider problem’. The Free-Rider Problem Imagine that a decision needs to be made as to whether a public good is to be created, perhaps a park or a road; it might also be public order and security, which can be guaranteed by police and the judiciary. Assume the principle of free participation is to be used, so advocates of the public good will have to pay and opponents will not.

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In that case many people will pretend to oppose the idea in order to avoid paying, while speculating that they will be able to use the public good like everybody else. The consequence of such free-riding behaviour is  THE L IMI TS OF TH E MAR KET that too few people will contribute and the public good will never come into being, even if a large majority of people want it. The free-rider problem involves an underlying externality. By not contributing to ﬁnancing a public good, the individual creates an external effect, namely that the public good is not produced and that no one can beneﬁt from it. Here again a discrepancy arises between private and collective rationality. Individuals who decide not to contribute (and to be free-riders) are in fact entirely rational from their perspective.

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Raising taxes on high incomes in one country leads to gains for those countries which do not implement such a policy. This can only be avoided through international collaboration, which does not seem likely to materialize in the immediate future. A similar problem arises for environmental policy, which is particularly pronounced in the case of CO emissions. Without international collaboration a free-rider problem arises. If Europe taxes  THE L IMI TS OF TH E MAR KET emissions, other countries beneﬁt from reduced emissions while having less action to take themselves. In time Europe, which bears high costs (in the form of loss of industrial competitiveness due to a tax on CO), will be forced to forgo its CO tax.

pages: 281 words: 95,852

The Googlization of Everything:
by Siva Vaidhyanathan
Published 1 Jan 2010

K., Louis, 51 Clarke, Arthur C., 53 Clinton, Bill, 40, 41, 57 Clinton, Hillary, 118, 119 cloud computing, Google services using, 17, 24, 29, 195–96 Cohen, Sacha Baron, 66 Collins, Francis, 208–9 Colombia, 142 Comcast, 49 Comedy Central, 35 commercialization: of academic research, 194; of libraries, 153, 154, 164, 186; of public sphere, 136 Communism, fall of, 121–23 competitors, Google’s, 15, 16, 17, 18–20, 27, 28–30; and book digitization, 162, 172; and cross-subsidization, 29; and search engines, 16, 20–25, 55–57, 132–33, 142–45. See also foreign markets, Google’s share in Conley, Dalton, 71 content providers, Google’s relations with, 26, 30, 46–48; and free rider problem, 30–36 INDEX contextual advertising, 27, 28 cookies, 9, 21, 86, 89, 183 copyright: and cache copies, 166–67; in China, 132; and Digital Millennium Copyright Act, 38; in Europe, 32; fourfactor test of, 169, 170; and free rider problem, 31–32, 166; and Google Books project, 10, 155, 159–61, 163, 166–71, 172; of music, 132, 166, 170, 249n25; and “notice and takedown” process, 47, 130; and transformative vs. derivative use, 170; and YouTube, 18, 35–36, 37, 38.

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If free riding becomes the norm, the entire system could break down. If a labor union succeeds in securing a wage hike or beneﬁt for all the employees of a ﬁrm, but some employees refuse to join the union and pay dues, they are riding for free on the efforts of the union.32 Another way of looking at a free rider problem, dealing with private ﬁrm behavior rather than unions, public goods, or public resources, is the argument that when ﬁrms provide services to the public that add to costs (such as a telephone help line), yet retailers sell the item below the suggested retail price, the manufacturer fails to beneﬁt from providing the service while incurring the entire cost.

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Susan Orlean, personal communication, July 13, 2009. 30. “Browser Statistics,” W3schools, www.w3schools.com/browsers/ browsers_stats.asp, accessed August 18, 2010. 31. Lester G. Telser, “Why Should Manufacturers Want Fair Trade?” Journal of Law and Economics 3 (October 1960): 86–105; Russell Hardin, “The Free Rider Problem,” Stanford Encyclopedia of Philosophy, http://plato.stanford.edu/entries/ free-rider/; Gary Reback, Free the Market!: Why Only Government Can Keep the Marketplace Competitive (New York: Portfolio, 2009), 69. 32. Fred G. Gurley, “Unalienable Rights versus Union Shop,” Proceedings of the Academy of Political Science 26, no. 1 (May 1954): 58–70. 33.

pages: 105 words: 34,444

The Open Revolution: New Rules for a New World
by Rufus Pollock
Published 29 May 2018

Although the Medical Innovation Convention has not been adopted, it remains a blueprint for a different model of research funding. It and proposals like it are essential to the future of the information age, as ways to marry Openness with a resolution of the free-rider problem while continuing to benefit from market mechanisms and up-front funding. Such models rely upon international agreements, but so does the current solution to the free-rider problem, the granting of monopolies for “intellectual property”, which were going to be extended yet again in the TPP (Trans-Pacific Partnership) – although this time Donald Trump’s America did not sign. * * * Strictly, India did not have “product” patents but had “process” patents for pharmaceuticals.

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Patents, by contrast, are usually interpreted as providing complete exclusion: without a licence, reusers are liable for damages and can do nothing – if they go ahead in the knowledge that they may be infringing the patent, they risk more severe damages for wilful infringement. Opening all research, whether financed privately or by the state, may sound all very well for a single country, but it does raise the free-rider problem: if all the publicly funded research the US does is Open, won’t others skimp on research and use that instead? What was to prevent South Africa’s government relying entirely on American research into HIV and funding none of its own?6 Well, even in an age increasingly obsessed with IP, there is a way to solve this problem and to refocus policy on innovation and outcomes rather than corporate protection.

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Countries might also agree to reciprocal recognition of remuneration rights, so that a remuneration right registered in one country would be rewarded also from the remuneration rights funds of other countries where a drug had saved lives or reduced suffering. This is almost exactly the approach set out in the Medical Innovation Convention proposed by Jamie Love and others. As well as tackling the free-rider problem, such agreements could also allow more systematic international prioritizing of neglected areas. At the moment, more money is spent each year finding drugs to reduce signs of ageing than on fighting malaria. Yet more than half a million people die each year of malaria, whereas no-one dies of wrinkles.

The Economics Anti-Textbook: A Critical Thinker's Guide to Microeconomics
by Rod Hill and Anthony Myatt
Published 15 Mar 2010

Again, each would have an incentive not to pay and to ‘free-ride’ on the benefits it might produce (such as government measures to restrict imported apples). Olson predicted that because of this ‘free rider problem’, such organizations would either not exist or would be small and weak unless they could provide individual farmers with some private benefits they could not otherwise get (cheap crop insurance, for example). Crucially, the free-rider problem is less severe for small groups. If a few firms account for most of the total production in an industry, they can more easily engage in collective action. The firms will act either together or individually to produce a collective good that benefits them all to some extent.

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The millions of buyers of overpriced health insurance and pharmaceutical drugs find it difficult to respond to defend their interests with anything like the resources deployed by industry. Despite the supposed power of numbers and of the ballot box, they tend to fall victim to the free-rider problem in two ways. It may pay not to act and it may pay not to have a clue what’s going on in the first place. The free-rider problem and collective inaction As in the earlier example with the apple farmers, if each person compares the costs of political action with the likely benefits, they may not act. Writing to their elected representatives or contributing to a public interest group such as Public Citizen may seem like a waste of time and money.15 The individual bears all the costs of his or her contribution (which may seem like a drop in the bucket), while the benefits (if any) largely go to others.

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113 5 | The firm organizing to further their collective interests, even where the total benefits to the group would exceed the costs of acting. For example, taxpayers, the unemployed and poor people often fall victim to the free-rider problem and are unable to form groups and to work together in the most effective way. Of course, some such organizations, such as consumer groups, do exist. The theory simply predicts that they will likely be much smaller and less powerful than they would be if people could somehow overcome the free-rider problem. watching laws, regulations and public policy that might affect their clients’ interests. Politicians will be under great pressure to look good to the voters, but to be good to big business (Zinn 1990: 255).

pages: 330 words: 91,805

Peers Inc: How People and Platforms Are Inventing the Collaborative Economy and Reinventing Capitalism
by Robin Chase
Published 14 May 2015

Openness also brings up the free rider problem. “In economics,” according to the website Investopedia, “the free rider problem refers to a situation where some individuals in a population either consume more than their fair share of a common resource, or pay less than their fair share of the cost of a common resource.”6 But Nicholas Gruen, an economist who has worked closely with the Australian federal government—most recently on two task forces on innovation and Government 2.0—figured out that for this new class of companies, free rider opportunities were much larger than the cost of free rider problems. Wikipedia succeeded because Jimmy Wales believed that more people would contribute valuable articles to Wikipedia than would vandalize them.

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Dan Bieler, “The Collaborative Economy Will Drive Business Growth and Innovation,” Forrester.com, May 19, 2014, http://blogs.forrester.com/dan_bieler/14-05-19-the_collaborative_economy_will_drive_business_innovation_and_growth. 4. Dries Buytaert, “The Business Behind Open Source,” July 24, 2014, http://buytaert.net/the-business-behind-open-source. 5. Eric von Hippel, Democratizing Innovation (Cambridge, MA: MIT Press, 2005). 6. “Free Rider Problem,” Investopedia, www.investopedia.com/terms/f/Free_rider_problem.asp. 7. Barton Gellman and Greg Miller, “U.S. Spy Network’s Successes, Failures and Objectives Detailed in ‘Black Budget’ Summary,” Washington Post, August 29, 2013. 8. “Army Launches Software Application Development Challenge ‘Apps for the Army,’ ” Army CIO/G-6, http://ciog6.army.mil/ArmyLaunchesSoftwareApplicationDevelopmentCha/tabid/68/Default.aspx. 9.

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See also GoLoco Farm-to-fork program, 235–237 Farmville, dependence on Facebook, 119–120 FedEx, employment status, 156 Ferguson, Missouri, protests through social media, 83–84 Field, Matan, 215 Financing angel and capital investors, 9–11 crowdfunding, 202–205 options for platform building, 199–203 Flexibility, 56–57, 188–189 Flexicurity, 190 Forbes’ “Best Countries for Business,” 190 Forest fires, Indonesia, NGO’s work, 230–232 Free and open-source software (FOSS), 25 and community, 134–135 crowdfunded and privately financed, 207–211 as excess capacity, 42–44 power of communities, 219–220 volunteer coordinator, 210–211 Free riders, problems and opportunities, 166 Freelancers no perks or protections, 252 U.S. numbers, 157–158 Freight, excess capacity, 94 Future, near, Peers Inc, 88–89 G-Auto, 239–243 GE, partnering with Quirky, 63–64 Gebbia, Joe, 58 General Public License (GPL), 205–207 Gift crowdfunding, 203–205 GitHub, 43, 45, 209–210 GlaxoSmithKline, edge case innovation, 170 Global events, 350.org, 233 Global Forest Watch, 228, 230–232 Global Positioning System.

pages: 162 words: 51,473

The Accidental Theorist: And Other Dispatches From the Dismal Science
by Paul Krugman
Published 18 Feb 2010

After all, how much difference will one vote make? Bells have just started going off in the head of any reader who remembers Econ 1. What I have just said is that the duties of a good citizen—such as becoming well informed before voting (and for that matter bothering to vote at all)—are subject to the dreaded free-rider problem. The free-rider problem arises whenever some valuable good or service is not “excludable”—that is, whenever the benefit cannot be restricted only to those who pay for it. It is clearly in the interest of all boaters to have a rescue service. But no individual boater has any incentive to pay for the service if others are willing to do so.

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And the same is true of police protection, public sanitation, national defense, the Centers for Disease Control, and so on. The free-rider problem is the most important reason all sane people concede that we need a government with some coercive power—the power, if nothing else, to force people to pay taxes whether or not they feel like it. But there is a catch: The democratic process, the only decent way we know for deciding how that coercive power should be used, is itself subject to extremely severe free-rider problems. Ratchoice theorist Samuel Popkin writes (in his 1991 book, The Reasoning Voter): “Everybody’s business is nobody’s business.

pages: 1,136 words: 73,489

Working in Public: The Making and Maintenance of Open Source Software
by Nadia Eghbal
Published 3 Aug 2020

“Nobody can keep open house in a great city.” —JANE JACOBS, The Death and Life of Great American Cities261 When explaining why nobody wants to pay for software, people often cite the free-rider problem, which is the idea that if you can’t exclude others from consuming a good they’ll use it without paying. Eventually, the good becomes overused, as producers lack the resources—usually provided by consumers—to supply it. It’s easiest to see how free-rider problems apply to non-excludable, rivalrous goods, a situation better known as the tragedy of the commons. If a public park is free to access, people will use it without paying for maintenance and upkeep.

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The trash cans will overflow, the crowds get packed, the grass ground down to mud. To address this problem, we typically pay for public parks with our taxes; some national parks also charge an entrance fee. But when it comes to public goods—i.e., goods that are both non-excludable and non-rivalrous, like software—it’s a bit harder to see where the free-rider problem applies. After all, a thousand people can read the same article, or use the same snippet of code, without diminishing its quality. In the physical world, public goods are usually provided by the government, paid for by taxes: street lights, national defense, clean air. Should the government provide our open source software?

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Most developers will probably read that sentence and scream a resounding “NO!”* Economists tell us that we tend to rely on governments to provide our public goods because otherwise they’ll become underproduced over time, meaning that consumers are unlikely to provide them on their own, due to the free-rider problem. But in the online world, we don’t have governments to provide our public goods. Open source software, in particular, often involves developers from different countries committing code to the same project. If an open source project has one developer in Australia and another in India, which government’s job is it to support production?

pages: 334 words: 98,950

Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism
by Ha-Joon Chang
Published 26 Dec 2007

The agents (managers) do not maximize enterprise profits, while it is impossible for the principtals (citizens) to make them do so, because of the inherent deficiency in information they possess about the agents’ behaviour and the free-rider problem amongst the principals themselves. On top of this, state ownership makes it possible for enterprises to survive through political lobbying rather than through raising productivity. But all three arguments against state ownership of enterprises actually apply to large private-sector firms as well. The principal-agent problem and the free-rider problem affect many large private-sector firms. Some large companies are still managed by their (majority) owners (e.g., BMW, Peugeot), but most of them are managed by hired managers because they have dispersed share ownership.

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Not only can they do (and, in many cases, have done) well, under certain circumstances they may be superior to private-sector firms. The pitfalls of privatization As I have pointed out, all the alleged key causes of SOE inefficiency – the principal-agent problem, the free-rider problem and the soft budget constraint – are, while real, not unique to state-owned enterprises. Large private-sector firms with dispersed ownership also suffer from the principal-agent problem and the free-rider problem. So, in these two areas, forms of ownership do matter, but the critical divide is not between state and private ownership – it is between concentrated and dispersed ownerships. In the case of the soft budget constraint, arguably the distinction between state and private ownership is sharper, but even here it is not absolute.

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As a result, everyone’s preferred course of action will be not to monitor the public enterprise managers at all and simply to ‘free-ride’ on the efforts of the others. But, if everyone free-rides, no one will monitor the managers and poor performance will be the outcome. The reader will immediately understand the ‘free-rider problem’ if he tries to recall how often he himself has monitored the performance of any of his country’s SOEs (of which he is one of the legal owners) – Amtrak, for example. There is yet another argument against state-owned enterprises, known as the ‘soft budget constraint’ problem. Being a part of the government, the argument goes, SOEs are often able to secure additional finances from the government if they make losses or are threatened with bankruptcy.

pages: 347 words: 99,317

Bad Samaritans: The Guilty Secrets of Rich Nations and the Threat to Global Prosperity
by Ha-Joon Chang
Published 4 Jul 2007

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As a result, everyone’s preferred course of action will be not to monitor the public enterprise managers at all and simply to ‘free-ride’ on the efforts of the others. But, if everyone free-rides, no one will monitor the managers and poor performance will be the outcome. The reader will immediately understand the ‘free-rider problem’ if he tries to recall how often he himself has monitored the performance of any of his country’s SOEs (of which he is one of the legal owners) – almost certainly never! There is yet another argument against state-owned enterprises, known as the ‘soft budget constraint’ problem. Being a part of the government, the argument goes, SOEs are often able to secure additional finances from the government if they make losses or are threatened with bankruptcy.

pages: 304 words: 90,084

Net Zero: How We Stop Causing Climate Change
by Dieter Helm
Published 2 Sep 2020

In any cartel, each party has an incentive to encourage the others to restrict output (in this case, carbon) and benefit from the collective gains from a better outcome for all (less global warming). But each party also faces the costs of doing this. Hence the killer incentive: get others to do the hard graft, promise yourself to join in and then cheat. You get the benefits, but not the costs. It is what in economics is called the free-rider problem. This perverse incentive is endemic in such agreements, and it is naive to pretend otherwise. All cartels and collusive agreements are designed with this incentive problem in mind, and, as we shall see, Kyoto and Paris are no exceptions. Most fail, and, to see why, let’s think about how the incentive problem could be cracked.

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Such appeals make for great political speeches, and UN climate events are full of them. Hot air has so far been spectacularly ineffective, as witnessed by the continuing and relentless rise in carbon concentrations in the atmosphere. Measuring emissions Perhaps there is some other way around the free-rider problem? Take a look again at the conventional cartel dilemma. To fix output it has to be measured. Quotas have to be assigned to the parties; cheating has to be detectable, and the cheats have to be punished. You can see where this is going. While we can measure the global concentration of carbon in the atmosphere, and while new satellite technology is getting better at seeing what is going on, it is work-in-progress to measure each country’s emissions.

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The next three chapters deal with each of these in turn, to put flesh on this sustainable consumption and growth path. 5 THE PRICE OF CARBON If carbon consumption is the problem, there are two ways of reducing it. The first is to persuade people and to emphasise their moral duties. This has merits, but is unlikely to be easy, and will take a long time. There is the free-rider problem to consider (why should you do anything if no one else does, and even if they do, why not take that free ride on their efforts?), and there is the sad fact that not many of us are sufficiently moral when it comes to climate change. We prefer our consumer society, even if it is saturated with carbon.

pages: 482 words: 149,351

The Finance Curse: How Global Finance Is Making Us All Poorer
by Nicholas Shaxson
Published 10 Oct 2018

But when you switched away from consumers and markets and tried to apply the model to public services like schools, roads or hospitals there was a snag, which Samuelson himself had laid out in a paper in 1954. And it was a biggy: the so-called free-rider problem. People will happily consume public services, Samuelson explained, but they like to dodge the taxes that pay for these things. The free-rider problem means that you can’t get people to reveal their preferences regarding taxes and public services, so you can’t shoehorn this stuff into the Chicago School’s elegant mathematical models to determine optimal levels of taxes and public spending.

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Not only that, but the tax incentive game is notorious for exploitation, with juicy deals having been given to corporations that have provided campaign financing, and endless revolving doors for public officials.22 The Missouri-controlled part of Kansas City, for instance, has set up an arm’s-length Economic Development Corporation whose avowed goal is ‘a competitive, vibrant and self-sustaining economy’, but its staff rotate in and out of the big law firms negotiating the handouts. The EDC also gets a cut of each deal, while tax abatements come out of someone else’s budget: the classic free-rider problem. Johnson County, Schreck said, now typically gives a 50–55 per cent property tax abatement for incoming businesses, but aggressive companies have squeezed out more: the restaurant chain Applebee’s got 90 per cent for ten years, by playing the we’ll-move-to-Missouri card. The Missouri Port Authority gives up to 100 per cent.

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There is only one kind of tax – property taxes – and everyone lives off dividend income alone, while infinitely wise community leaders, in harmony with all other political forces, guide infinitely wise citizens. Company executives pondering where to relocate are never swayed in their decisions by free hookers sent up to their hotel rooms or cash-filled brown envelopes stuffed under doors on their location scouting trips, and corruption is absent from local politics. To avoid the free-rider problem, everyone must go to school and college or university in one place, then work, live, pay taxes and grow old in the same locality, exclusively, for their whole life; otherwise jurisdictions will free-ride off each other’s education or pensions systems – so people can’t vote with their feet after all.

pages: 405 words: 130,840

The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom
by Jonathan Haidt
Published 26 Dec 2005

But once evolutionary theorists began testing predic-lions rigorously, using computers to model the interactions of individuals who use various strategies (such as pure selfishness versus tit for tat), they <|uickly came to appreciate the seriousness of the "free-rider problem." In groups in which people make sacrifices for the common good, an individual who makes no such sacrifices—who in effect takes a free ride on the b a c k s of the altruists—comes out ahead. In the cold logic of these computer simulations, whoever accumulates the most resources in one generation goes on to produce more children in the next, so selfishness is adaptive but altruism is not. The only solution to the free-rider problem is to make altruism pay, and two back-to-back breakthroughs in evolutionary thinking showed how to do that.

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The only solution to the free-rider problem is to make altruism pay, and two back-to-back breakthroughs in evolutionary thinking showed how to do that. In chapter 3 I presented kin altruism (be nice to those w h o share your genes) and reciprocal altruism (be nice to those who might reciprocate in the future) as two steps on the way to ultrasociality. Once these two solutions to the free-rider problem were published (in 1966 and 1971, respectively),41 most evolutionary theorists considered the problem of altruism solved and essentially declared group selection illegal. Altruism could he explained away as a special kind of selfishness, and anyone who followed Darwin in thinking that evolution worked for the "good of the group" instead of the good of the individual (or better yet, the good of the gene),42 was dismissed as a mushy-headed romantic.

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Even if the belief in supernatural entities emerged originally for s o m e other reason, or as an accidental byproduct in the evolution of cognition (as s o m e scholars have claimed),54 groups that parlayed those beliefs into social coordination devices (for example, by linking them to emotions such as s h a m e , fear, guilt, and love) found a cultural solution to the free-rider problem and then reaped the enormous benefits of trust and cooperation. If stronger belief led to greater individual benefits, or if a group developed a way to p u n i s h or exclude those who did not share in its beliefs and practices, conditions were perfect for the co-evolution of religion and religious brains.

pages: 463 words: 105,197

Radical Markets: Uprooting Capitalism and Democracy for a Just Society
by Eric Posner and E. Weyl
Published 14 May 2018

Second, the outcome of the vote should maximize the well-being of the entire group, not the well-being of one subset at the expense of that of another. Yet recall that for this to be true, by Samuelson’s rule, every citizen must vote proportionally to how much she cares about the issue. How exactly does QV achieve this, avoiding the free-rider problem? Recall that the problem with a standard pricing model of public goods, where influence is based on a one-to-one relationship with how much you pay, is that those who care most about an issue want to buy all the votes, while those who care only a little buy none. The problem is that votes are too cheap for those who care a lot, but too expensive for those who care little.

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If the cost of voting increased more steeply, say, as the fourth power of votes cast, those with strong preferences would vote too little and we would revert to a partial tyranny of the majority. If the cost of voting increased more slowly, those with intense preferences would have too much say, as a partial free-rider problem would prevail. Thus, under QV, the communities can determine which group of people—the supporters or opponents—is willing to give up more total voice for the project even though it does not know how much any individual (or the group) values the project. Crucially, QV gives weight both to numbers and to the intensity of interests.

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See William Vickrey, Counterspeculation, Auctions and Competitive Sealed Tenders, 16 Journal of Finance 8 (1961); William Vickrey, Automobile Accidents, Tort Law, Externalities, and Insurance: An Economist’s Critique, 33 Law and Contemporary Problems 464 (1968). 31. See Edward H. Clarke, Multipart Pricing of Public Goods, 11 Public Choice 17 (1971); Theodore Groves, Incentives in Teams, 41 Econometrica 617 (1973). 32. Theodore Groves & John Ledyard, Optimal Allocation of Public Goods: A Solution to the “Free Rider” Problem, 45 Econometrica 783 (1977); Aanund Hylland & Richard Zeckhauser, A Mechanism for Selecting Public Goods When Preferences Must Be Elicited (Kennedy School of Government, Harvard University, Discussion Paper 51, 1980). 33. For a more detailed exposition of this graphical analysis, see Nicolaus Tideman & Florenz Plassmann, Efficient Bilateral Taxation of Externalities, 172 Public Choice 109 (2017). 34.

Governing the Commons: The Evolution of Institutions for Collective Action
by Elinor Ostrom
Published 29 Nov 1990

In North Atlantic Maritime Cultures: Anthropological Essays on Changing Adaptations, eds. R. Andersen and C. Wadel, pp. 277-98. The Hague: Mouton. Marwell, G., and R. E. Ames. 1979. Experiments on the Provision of Public Goods. I: Resources, Interests, Group Size, and the Free-Rider Problem. Amer ican Journal of Sociology 84: 1335-60. Marwell, G., and R. E. Ames. 1980. Experiments on the Provision of Public Goods. II: Provision Points, Stakes, Experience and the Free-Rider Problem. American Journal of Sociology 85:926-37. Maser, S. M. 1985. Demographic Factors Affecting Constimtional Decisions. Pub lic Choice 47:121-62. Matthews, R. 1988. Federal Licensing Policies for the Atlantic Inshore Fishery and Their Implementation in Newfoundland, 1973-1981.

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C., 224n3 12 Organization (FCO), 169-71, 240n22, 240-1n23 firm, theory of, 29,40-1,207, 221n13, 243n13 Fish Sales Union, 153 Fladby, B., 160, 163-4, 240n16 Flood, M. M., formal laws, 51 Forman, S. 0., 20 Fortmann, 1,., 220n21, 235 Fossette, C., 116, 123, 234-5n28, 243n16 Fossette, R., 116, 123, 234-5n28, 243n16 frameworks,45-6, 192,214-16, 244n20 free-rider problem, 6, 32, 45, 49, 241n25 frequency-dependent action, 39, 209, 221nl0 Frey, B. S., 221n6, 223n27 Frohlich, N., 218n4 Furubotn, E. G., 223-4nl Gadgil, M., 23 Gal Oya irrigation scheme, Sri Lanka, 158, 167-73, 179-81, 189, 240n19, 241n25,n26 see also Sri Lanka irrigation systems Gal Oya left bank, see Gal Oya irrigation scheme Galanter, M., 219n16n19 games, 23, 217-18n2 "assignment", 47 assurance, 42, 47 Central Authoriry, 10-12f chicken, 47 commons dilemma, see commons, tragedy of detection/deterrence, 49 Hardin Herder, 4, 9-10, 39; see also prisoner's dilemma against nature, 12-13 noncooperative, 4 prisoner's dilemma, see prisoner's dilemma Self-Financed Contract-Enforcement, 15f, 17-18, 219n14,n17,n18 Gardner, R., 47, 55, 140, 220n20, 222-3n25,231n8,237n52, 244n20 Generalisimo Dam, 71, 73 Gilles, J.

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The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It
by Paul Collier
Published 26 Apr 2007

I would like to see the leading African states with yet more ambition to bring peace to the continent. Mobilizing Changes in Our Laws and the Promulgation of International Charters The big obstacle to changing our own laws is the free rider problem. Remember, each country would rather not act alone and disadvantage its firms. This is the perfect cause for the big international NGOs: with memberships in all the major countries, the NGOs can overcome the free rider problem that constrains each government. In effect, we need an alliance between the NGOs and the OECD, which is the bureaucracy for intergovernmental coordination. International charters could be powerful forces for improving governance in the bottom billion.

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The OECD probably was not the ideal institution to promulgate such a charter because it does not have developing-country representation and so can easily be portrayed as merely serving the interests of rich countries. However, given the extreme shortage of agencies in a position to overcome the free rider problem associated with such a charter, the OECD was decidedly better than nothing—but that is what we have ended up with. The OECD was opposed by two groups. One was the governments of the bottom billion that are run by crooks and populists. Leaders as notorious as Idi Amin, Mobutu Sese Seko, and Robert Mugabe have depended upon not being differentiated from those who are genuinely trying to develop their countries.

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Changing Our Laws, Promulgating International Charters: Global Public Goods Changing our laws and promulgating international charters are global public goods. This is a grandiose way of saying that providing them is going to be problematic. Global public goods are grossly undersupplied because nobody has much interest in providing them. Being good for everybody, they face the ultimate free-rider problem. The real problem, therefore, is not that of not knowing what to do but getting around to doing it. I will return to that problem in Part 5. CHAPTER 10 Trade Policy for Reversing Marginalization GENERALLY, I DO NOT MUCH CARE for rich-country wallowing in guilt over development. I find it contrived, and it diverts attention from a practical agenda.

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Liars and Outliers: How Security Holds Society Together
by Bruce Schneier
Published 14 Feb 2012

Societal dilemmas illustrate how society keeps defectors from taking advantage, taking over, and completely ruining society for everyone. It illustrates how society ensures that its members forsake their own interests when they run counter to society's interest. Societal dilemmas have many names in the literature: collective action problem, Tragedy of the Commons, free-rider problem, arms race. We'll use them all. Part II fully develops my model. Trust is essential for society to function, and societal pressures are how we achieve it. There are four basic categories of societal pressure that can induce cooperation in societal dilemmas: Moral pressure. A lot of societal pressure comes from inside our own heads.

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Corresponding defection: Take as much of that shared resource as you can. In a Tragedy of the Commons, people acting in their self-interest harm the group interest. There's another type of societal dilemma, where people can receive the benefit of those who act in the group interest without having to act in the group interest themselves. It's called the free-rider problem. Whooping cough (otherwise known as pertussis) is a good example. It's both almost entirely preventable and almost entirely untreatable. Early in the 20th century, before the establishment of widespread vaccination programs, it was one of the most feared illnesses, and it remains a significant cause of death in developing countries.

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Part II A Model of Trust Chapter 6 Societal Pressures In game theory, Prisoner's Dilemmas have no solution. Because the two prisoners, or the merchant and customer, can't trust each other, they both end up defecting. The larger societal dilemmas—the arms race, the Tragedy of the Commons, and the free-rider problem—are similarly unsolvable. Defecting is the only course that makes logical sense, even though the end result will be disastrous for the entire group. But that's not how people generally operate. We cooperate all the time. We engage in honest commerce, although Enron and AIG and Countrywide are some pretty spectacular exceptions.

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Trust: The Social Virtue and the Creation of Prosperity
by Francis Fukuyama
Published 1 Jan 1995

But certain forms of religious life can also be extremely helpful in a market setting, because the religion provides a means of internalizing the rules of proper market behavior. There is another reason that societies manifesting a high degree of communal solidarity and shared moral values should be more economically efficient than their more individualistic counterparts, which has to do with the so-called “free rider” problem. Many organizations produce what economists call public goods, that is, goods that benefit the members of the organization regardless of the amount of effort they contribute to their production. National defense and public safety are classic examples of public goods that are provided by the state and accrue to its citizens simply by virtue of citizenship.

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As the economist Mancur Olson has pointed out, all organizations producing public goods of this sort suffer from the same inner logic: the larger they become, the greater the tendency is for individual members to become free riders. A free rider benefits from the public goods produced by the organization but fails to contribute his or her individual share to the common effort.8 In a very small group, like a partnership of half a dozen lawyers or accountants, the free rider problem is not severe. A single partner slacking off will be noticed immediately by colleagues, and the failure to perform will have relatively large and noticeable consequences for the profitability of the group as a whole. But as the size of organizations increases, the output of the group affected by the actions of any one of its members decreases at the margin.

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At the same time, the probability that the free-riding individual will be caught and stigmatized falls. It is much easier for an assembly line worker in a factory employing thousands to fake sickness or to take extra-long breaks than in the small partnership, where the group members are highly dependent on one another. The free rider problem is a classic dilemma of group behavior.9 The usual solution is for the group to impose some form of coercion on its members to limit the free riding they can do. That is why, for example, unions demand closed shops and mandatory dues; otherwise, it would be in the self-interest of any individual member to leave the union and break the strike, or alternatively to skip the dues but benefit from the higher wage settlement.

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People, Power, and Profits: Progressive Capitalism for an Age of Discontent
by Joseph E. Stiglitz
Published 22 Apr 2019

The difference between government and all these other forms of cooperation is the power of compulsion: it can force people and institutions not to do something (like carrying a gun which could lead to the death of your neighbor and impose other harms) or to do something (pay taxes, so that we have an army to defend us). Because in our modern society there are so many ways we can help and harm each other, government is inevitably going to be large and complex. Because of the “free-rider problem”—so many would like to benefit from publicly provided goods and services, from the military, police and fire protections, and the basic knowledge produced by government laboratories, to the protection of our environment, without paying their fair share of the costs—contributions have to be compulsory, that is, there has to be taxation.

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Stiglitz, Lectures on Public Economics (New York: McGraw-Hill, 1980; reprinted in 2015, with a new introduction, Princeton: Princeton University Press). 4.This can be put another way: everyone wants to be a free-rider on the efforts of others. They can enjoy the benefits of the public goods provided by others without bearing the cost. (Not surprisingly, this is called the free-rider problem in the provision of public goods.) 5.Elsewhere I have referred to this as society’s soft infrastructure. Many of the difficulties confronting the countries making the transition from Communism to a market economy were the result of the absence of this soft infrastructure. See Joseph E. Stiglitz, Whither Socialism?

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They use their market power over the internet to advantage their own content-providing services over those of rivals. From either perspective, though, ultimately consumers suffer, from higher prices and/or less innovation and poorer products. 20.In The Economic Role of the State, I explain why we can’t just rely on voluntary collective action. For instance, because of the “free-rider” problem in the provision of public goods, everybody would like to enjoy the benefits without contributing to the costs. 21.See, e.g., Joseph E. Stiglitz, “Some Lessons from the East Asian Miracle,” World Bank Research Observer 11, no. 2 (Aug. 1996): 151–77; and The East Asian Miracle: Economic Growth and Public Policy, a World Bank policy research report (New York: Oxford University Press, 1993).

Super Thinking: The Big Book of Mental Models
by Gabriel Weinberg and Lauren McCann
Published 17 Jun 2019

When decisions are made by more than just you, then a third party is usually needed to fill this role, just as the city of Boston did when it restricted the number of cows on Boston Common. Company expense policies that help prevent overspending are an organizational example. Another cause of issues like the tragedy of the commons is the free rider problem, where some people get a free ride by using a resource without paying for it. People or companies who cheat on their taxes are free riders to government services they use, such as infrastructure and the legal system. If you’ve ever worked on a team project where one person didn’t do anything substantive, that person was free-riding on the rest of the group.

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Since one person’s use does not significantly reduce a public good’s availability to others, it might seem as though there is no harm in free-riding. However, if enough people free-ride on a public good, then it can degrade to the point of creating a tragedy of the commons. Vaccinations provide an illustrative example that combines all these models (tragedy of the commons, free rider problem, tyranny of small decisions, public goods), plus one more: herd immunity. Diseases can spread only when they have an eligible host to infect. However, when the vast majority of people are vaccinated against a disease, there are very few eligible new hosts, since most people (in the herd) are immune from infection due to getting vaccinated.

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Fixing it will require intervention either by fiat (like government regulation) or by setting up a marketplace system according to the Coase theorem (like cap and trade). Public goods (like education) are particularly susceptible to the tragedy of the commons (like poor schools) via the free rider problem (like not paying taxes). Beware of situations with asymmetric information, as they can lead to principal-agent problems. Be careful when basing rewards on measurable incentives, because you are likely to cause unintended and undesirable behavior (Goodhart’s law). Short-termism can easily lead to the accumulation of technical debt and create disadvantageous path dependence; to counteract it, think about preserving optionality and keep in mind the precautionary principle.

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The Survival of the City: Human Flourishing in an Age of Isolation
by Edward Glaeser and David Cutler
Published 14 Sep 2021

These negative effects of density are solved through collective actions, like investing in sewers, charging drivers a congestion fee, or hiring a night watchman. Yet the ability of cities to solve these problems is undermined by what the economist Mancur Olson called the free-rider problem. When the benefits of group activity go to everyone in the group, then each individual has a private incentive to coast along on the efforts of others. This free-rider problem bedevils any shared endeavor, from a high school science club to a great metropolis, and it becomes worse in larger groups. Olson wrote in The Rise and Decline of Nations that “the incentive for group action diminishes as group size increases, so that large groups are less able to act in their common interest than small ones.”

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The physical frontier may have loomed large in Turner’s psyche, but America’s growing cities were vastly more important for ordinary people. The population of urban America had increased from 6.2 million to 22 million in the thirty years before 1890, and that population would rise to 69 million in the thirty years after Turner’s essay. Olson was right that small interest groups could sometimes dominate by solving their own free-rider problems. New York’s Tammany Hall got its political foot soldiers to work with promises of public jobs and free turkeys. But before World War I, those interest groups typically wanted the wealth that would come with urban growth. Gradually, however, a new anti-growth model was emerging in America’s suburbs.

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Yet since 1970, those remaining spaces on the metropolitan frontier have been increasingly captured by insiders as well. Within city limits, community activists, including the great Jane Jacobs, learned how to stop the mighty from bulldozing their neighborhoods. Jacobs brilliantly and intuitively understood the free-rider problems that Olson discussed. She helped lead Greenwich Village’s opposition to the Lower Manhattan Expressway. This was an early example of the freeway revolts that would emerge in wealthier and better-organized communities to oppose highway construction. Fighting a highway that might cut through your neighborhood is far more justifiable than fighting a medium-density housing project that might provide homes for some slightly poorer people.

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America's Bank: The Epic Struggle to Create the Federal Reserve
by Roger Lowenstein
Published 19 Oct 2015

Lawrence Broz first proposed the thesis that American bankers lobbying for a central bank were motivated, at least in part, by their private interest in seeing the dollar become an international currency. See Broz’s “The Origins of Central Banking: Solutions to the Free-Rider Problem,” International Organization 52, no. 2 (Spring 1998), 231–68, as well as his “Origins of the Federal Reserve System: International Incentives and the Domestic Free-Rider Problem,” International Organization 53, no. 1 (Winter 1999), 39–70. See also Adler, Jacob H. Schiff, 280–81, which quotes Schiff at the New York Chamber of Commerce: “Our merchants who buy goods in China, Japan, South America, and elsewhere must, to our mortification, still settle their transactions in London, Paris, or Germany, just as the very money we loaned to Japan recently had to be remitted to London.”

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Warburg, The Federal Reserve System: Its Origin and Growth—Reflections and Recollections (New York: Macmillan, 1930), 2:125. Britain had not experienced a banking suspension: Andrew, “Hoarding in the Panic of 1907,” 290. America had been scorched: J. Lawrence Broz, “Origins of the Federal Reserve System: International Incentives and the Domestic Free-Rider Problem,” International Organization 53, no. 1 (Winter 1999), 44. The five severe crises occurred in 1873, 1884, 1890, 1893, and 1907. “All institutions had to run”: Timberlake, The Origins of Central Banking in the United States, 183–84. Quickly on the heels of the Panic: Sprague, “The American Crisis of 1907,” 368; and Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867–1960 (Princeton, N.J.: Princeton University Press, 1971), 156.

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roughly twenty in all: Forrest Capie, Charles Goodhart, and Norbert Schnadt, “The Development of Central Banking” (1994), available at http://eprints.lse.ac.uk/39606/1/The_development_of_central_banking_%28LSERO%29.pdf. Specifically, its table 1.2, “The Number of Central Banks 1900–1990” (p. 6), states there were eighteen in 1900 and twenty in 1910. Background on central bank history and development is based on J. Lawrence Broz’s trenchant “The Origins of Central Banking: Solutions to the Free-Rider Problem,” delivered at the 1996 Annual Meeting of the American Political Science Association, and published in International Organization 52, no. 2 (Spring 1998), 231–68. the big three of European banking: Bagehot, Lombard Street, 16, 28, and 84–85. In Germany, management was in the hands: National Monetary Commission, Interviews on the Banking and Currency Systems of England, Scotland, France, Germany, Switzerland, and Italy, 61st Cong., 2d sess.

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The Shock of the Old: Technology and Global History Since 1900
by David Edgerton
Published 7 Dec 2006

The argument was this: individuals in a society would not fund enough research because others could make use of the research just as much as the funder could. This is the famous ‘free-rider’ problem. The market failed, and thus government should step in to fund research, which would benefit everyone. Of course, states, including the US, supported research long before this argument was put forward, and of course would continue to do so for other reasons. Yet the argument worked only for a closed system, if each nation was insulated from every other one. For the free-rider problem would otherwise also apply to governments – why should the Indian government fund research that would equally be exploited by Pakistani, or US citizens?

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Wells on 139–40 horsepower 34–5, 34 radio 116 Western Front 1243 Fischer-Tropsch process 121, 122 fishing 166–8 flight vii, 203 see also aeroplanes; aviation Florida State University 186–7 fluid mechanics 158 Focke-wulf 125 Fogel, Robert 5 folk museums 28, 29, 38 Ford, Henry 82, 98, 174 My Philosophy of Industry 113–14 Ford cars 97 Ford engine plant, Cleveland 85, 86 Ford Focus 70 Ford Mondeo 70 Ford Motor Company 69, 70, 71, 126, 129–30, 188, 197 Fordism 70, 72, 127 France aviation 111 battle of France (May 1940) 150 executions 176 state engineers 101 torture techniques 157 two-way movements between Britain and France 111–12 France, SS 95–6 Fray Bentos plant, Uruguay 171, 171, 172–3, 175 free trade 118, 119 ‘free-rider’ problem 107–8 French Revolution 177 Frigorífico Anglo, Fray Bentos, Uruguay 171, 172, 173, 175 Frigorífico Artigas 172 Frigorífico Montevideo 172 fungicides 50, 160–61 furniture, wooden ix, xii, 72 G Gagarin, Yuri 137 gallows 176, 177, 182 galvanised iron 41 Gammexane 26 Gandhi, Mahatma 59–60, 107 Garand, John 189 Garbo, Greta 101 garrotte 176 Gary, Elbert 127 Gary, Indiana 127 gas chambers 165, 176–7, 178, 181, 182 gas turbine 3 gas warfare 138, 149 Gates, Bill xii, 72 GDP 53, 54, 70, 79, 80, 109, 122, 129, 201 GE 130 Geigy 196 Gellner, Ernest 106, 140 Genentech 202 General Electric 71, 194 Laboratory 193 General Electric J–47 engine 88 General Motors 70, 188, 197 genetic engineering xiv genocide, technologies of 178–83 German armies 146 German Democratic Republic (GDR) 129 Germany aircraft experts 123–4 aviation 104–5, 111 bombing of in the Second World War 14, 15 chemicals 105 electric vehicles 9 executions 177 horsepower in the Second World War 34, 35–6, 142 mass killings by 146, 165 motor cars 111 nationalism 180 Nazi 118, 120, 122, 177 synthetic fuel production 120–21, 122 television 131 V2 project x, 17–18 war production 14 whaling 166 Ghana car repairers 83–5 vehicle bodies 99 Gibraltar 91 Giedion, Siegfried 55 Gilliam, Terry 75 Gilmore, Gary 178 Giscard d’Estaing, President Valéry 101 Gissing, George 168 Glaxo 196 Glaxosmithkline 196 global warming 210 globalisation 113, 115 GM crops 210 GNP 110 Goan lascars 136 Goering, Herman 120 ‘golden age’ 52 Gorky plant, Soviet Union 126 Gramsci, Antonio 127 Grassano, Italy 123 Great Leap Forward 44–5, 63 Greece: autarchy 118 green revolution 64, 65 Grégoire, Marc 20 group technology 129 Groves, Brigadier-General Leslie 18, 158, 199 guano use 50, 119 Guatemala 177 guerrilla rebellions 152–3 guillotine x, 176, 177 Gulf War (1991) 94, 155–6 Gulf War (2003) 156 guns 159 replica 50 see also rifles H H bomb see hydrogen bomb H300 supersonic fighter 125–6 Haber, Fritz 186 Haber-Bosch process 64, 67, 119, 120, 186 Hanford nuclear factory, USA 198 Harland and Wolff shipyard, Belfast 50 Harris, Sir Arthur ‘Bomber’ 13–14 Hatschek, Ludwig 42 heat engine 3 Heinkl, Ernst 125 herbicides 162–3 Hercules, HMS 95 herpes 163 Highland Park plant, Detroit 197 Hindustan Marut fighter 125 Hindustan Motors 44 Hiroshima, Japan 16 Hiroshima bomb 15 Hispano-Suiza 31 Hitachi 196 Hitler, Adolf 18, 104, 147, 177 HIV 27, 164, 207 Hoechst 193, 196 Holocaust 146, 165, 179–81 denial 181–2 ‘home economics’ 56 Hoover 57 Hoover, President Herbert 102 horses 32–6 agriculture xiii, 33–4, 62, 63 transport 33 in the world wars x, 34–6, 34, 142 hospitals 186–7 household 53–8 unused goods 71 ‘household engineering’ 56 housing, self-help 43 Hutus 42, 183 Huxley, Aldous: Brave New World 75 hydrogen bomb (H-bomb) 18, 149 hydrogen cyanide 176 hydrogenation 119–22 of carbon monoxide 121 of coal 120, 121–2 of nitrogen 119–20 I Ibadan, Nigeria 41 IBM (International Business Machines) 196 IBP 175 ICI (Imperial Chemical Industries) 119, 121, 122, 164 ICT see information and communication technologies IG Farben 120–21, 122, 130, 161, 180 IKEA xii, 71, 72 Ilford Limited 130 immunisation 163–4 Imperial Institute of Technology, St Petersburg 130 imperialism 39, 116 India aviation 126, 135 bicycle production 45 carrier pigeons 43 hand water pumps 79 malaria 26–7 motor-cycle industry 43–4 national industrial development 118 Naxalites 153 non-technical higher education 136 railways 96, 98, 99, 134–5 rickshaws and variants 45–7 rifles 144 shipbreaking 208 spinning wheel 60, 107 two-way movements between Britain and India 111–12 Indian army 136 Indian National Congress 60, 107 Indonesia 137 industrial museums 29 industrial revolution ix, 2, 3, 29, 52, 192 industrial revolutions 2–3, 52, 74 industrialisation 44, 73, 136, 137, 138 industry output 53 shift from agriculture 52 shift to services 52 information and communication technologies (ICT) 3–4, 5 information society 70 information technology x, xiv, 139, 192, 195 innovation vii, ix, xii, 3, 104 calling for 210 dating technology by timelines 31 distinguishing between it and use 4 expenditure on 79 failed xiii, 210 global 112–13 national rates of 107, 108 and poor countries 110 time of maximum use 4–5 timeline 29 innovation-centred history based on a very few places ix claims to universality ix focus on early history of technologies that were important later xii history of inventions 184 lack of history of non-inventive places xi misleads as to the nature of scientists and engineers xiii nationalism and imperialism 115–16 timelines vii, ix, x use-centred account refutes some of its conclusions xii insecticides 26, 160, 163 chlorinated organic compounds 161–2 organophosphate 161, 164 Instituto Nacional de Industria 118 integrated circuit 195 Intel 195, 196, 203 intermediate technologies 191 internal combustion engine 10 International Harvester 15/30 tractors 126 International Rice Research Institute, Philippines 190 internationalisation 137 internationalism 140 internet vii, x, xiv, 1, 3, 6, 7, 115, 137, 158 intra-atomic energy 3 invention vii, ix, xii, 104, 184–205 academic science and invention 185–7 alternative paths 210 and blacks 132 dating technology by timelines 31 failed xiii, 210 fecundity of 7 how does the bomb project fit in?

The Darwin Economy: Liberty, Competition, and the Common Good
by Robert H. Frank
Published 3 Sep 2011

As Ronald Coase clearly recognized, people typically must incur costs merely to discuss joint purchases. With only two people involved, these costs might not be prohibitive. But if hundreds or thousands were involved, communication costs could easily make the transaction impossible. With large numbers of people, the so-called free-rider problem also emerges. If a project will either succeed or fail independently of any one person’s contribution to it, everyone has an incentive to hold back—or “free ride”—in the hope that others will contribute. Finally, even when only few “IT’S YOUR MONEY . . .” 125 people are involved, reaching agreement on what constitutes a fair sharing of the total expense may be difficult.

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March, A Behavioral Theory of the Firm, Englewood Cliffs, NJ: Prentice-Hall, 1963; Michael Jensen and William Meckling, “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure,” Journal of Financial Economics 3(4), 1976: 305–360; Sanford Grossman and Oliver Hart, “Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation,” Bell Journal of Economics 11, Spring 1980: 42–64; and Oliver Williamson, Markets and Hierarchies: Analysis and Antitrust Implications, New York: Free Press, 1975. 12. Libertarians who are critical of Coase’s framework tend to focus on a presumed right of early arrivers to continue pursuing their activities without restriction.

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See also natural selection expenditure cascades: and income inequality, 61–62; and progressive consumption tax, 77–78, 80; and regressive consumption tax, 82 expertise, development of, 147–48 exploitation, of workers, 36 E-ZPass system, 113–14 failures, role of luck in, 142–43 fairness, in social hierarchies, 131 famines, 25, 73 farmers, income transfers to, 113, 115–16 Federal Communications Commission, 86–87 “Federal Communications Commission, The” (Coase), 86–89 Fidler, Lewis A., 183 Fillo, MaryEllen, 60 financial crisis of 2008, 52–55; consumption in, 53; government role in recovery from, 2–3, 53–55; savings rates in, 78; unemployment in, 2, 53–55 financial markets: cost-benefit test for loans in, 161; and labor-managed firms, 32–34 financial services industry: competition in hiring in, 154; income in, 162–63; overcrowding in, 162, 163–66; tax rates on, 163, 167; as winner-take-all labor market, 163–66 Finland, lack of corruption in, 56 first-come, first-served rule, 107–8, 110 fishery example, 164–66 fitness, reproductive, 7–8, 20–21, 24, 25 flat consumption tax, 82 food scarcity, 25 Ford, 19 Ford, Henry, 19 Fox News Channel, 5 France, bicycle helmets in, 189–90 free agency, in sports, 153 freedom, constraints on: in arms control agreements, 66, 67; libertarians on acceptable reasons for, 10–11, 195; shallow thinking about, 10–11; to solve collective action problems, 9; workplace safety regulations as, 41, 71, 72. See also harmful activities, constraints on freedom to prevent free markets: government-as-problem argument for, 5; libertarians’ expectations regarding outcomes in, 22–23 free-rider problem, 124–25 Friedman, Milton, 82, 89 Gabaix, Xavier, 152 Galbraith, John Kenneth, 18–19 Galt, John (character), 202–7 Gann, Paul, 48 gasoline tax: critics of, 13; effect on prices, 180–81; in energy crisis of 1979, 112; pace of implementation of, 180–81 Gates, Bill, Jr., 144–45, 147 INDEX Gates, Bill, Sr., 145 gazelles, 20 General Theory of Employment, Interest, and Money, The (Keynes), 53 genetic factors, in success, 146–47 genetic mutations, individual versus group benefits from, 7–8, 20–21.

The Great Economists Ten Economists whose thinking changed the way we live-FT Publishing International (2014)
by Phil Thornton
Published 7 May 2014

The accumulation of carbon dioxide in the atmosphere in the two centuries following the Industrial Revolution illustrates Samuelson’s theory. The painfully slow efforts by governments to agree on a deal to cut 178 The Great Economists emissions show how difficult it is to overcome the ‘free rider’ problem. As Samuelson’s collaborator William Nordhaus has put it: ‘The requirement for unanimity is in reality a recipe for inaction.’6 Intergenerational economics Another major breakthrough was the overlapping generations (OLG) model that captured the changing behaviour of consumers over different phases of their lives and how those decisions affect the growth of the overall economy.

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Index A Theory of Moral Sentiments (Smith, 1759) 2, 5–6 Adelman, Irma 110 American Economic Association 170 An Inquiry into the Nature and Causes of the Wealth of Nations see The Wealth of Nations anarchism 156 apartheid system in South Africa 199 Ariely, Dan 234 Arrow, Kenneth 191, 213 AT&T 22 austerity versus stimulus debate 43–4, 140–1 Austrian School of Economics 121–2 autarky concept 184 bank bailouts in the financial crisis 162 Bank of England 161 Barro, Robert 43 Barro-Ricardo equivalence 43–4 Becker, Gary (1930– ) 193–216 approach to human behaviour 212–15 building human capital 200–2, 210 early life and influences 195–7 economic perspective on discrimination 196–7, 198–9 Economics of Discrimination (1957) 196–7, 198–9 economics of the family 213–15 family decision making 203–6 key economic theories and writings 197–212 long-term impact 212–15 new home economics 203–6 Nobel Prize (1992) 194, 195–6 on crime and punishment 207–10 on drug addiction 210–12, 215 rational choice model 197, 212– 15, 216 verdict 215–16 Becker–Posner Blog 215 behavioural economics 218–19, 233–6 Bentham, Jeremy 31, 181 Bergmann, Barbara 206 Bergson, Abram 182 Bergson–Samuelson social welfare function 182–3 Bernanke, Ben 77, 159, 162 Bernoulli, Daniel 229 bias in decision making 222–5 in financial decision making 225–32 Bitcoin currency 138 Black, Fischer 187 Blinder, Alan 215 Bloomsbury Group 94 Blunt, Anthony 94 boom and bust cycles see business cycles Bretton Woods agreement 95, 108–9 Brown, Gordon 3, 42 Burgess, Guy 94 Burns, Arthur F. 147 Bush, George H.W. 139 business cycles 57, 65 Hayek’s explanation 123–6 Samuelson’s oscillator model 174–5 Butler, Eamonn 162 Cambridge School of economics 74, 86 Cambridge spy ring 94 capital flow controls 113 capital-intensive goods, effects of increase in wages 33 capitalism exploitation of the working class (Marx) 56–8, 62–3 Index239 ‘fictitious capital’ concept (Marx) 62 seeds of its own downfall (Marx) 56–8, 61–3 capitalist production process (Marx) 54–6 Carlyle, Thomas 33 cartels evil of 10–11 regulation to prevent 21–2 central banks control of economic activity 161 over-expansion of credit 123–4 central state planning, Hayek’s opposition to 134–6, 140 certainty effect 229, 230 ceteris paribus approach to economic analysis 79–80 Chapman, Bruce 19 Chicago School of economic thought 146, 160, 194 China savings and investment imbalance with the US 113 trade imbalance with the US 45 choice architecture 234 Churchill, Winston 98 classical economics 40, 54 Coase, Ronald 73 cognitive biases (Kahneman) 222–5 communism 19, 50 Communist Manifesto (Marx and Engels) 52, 58–61 company bailouts in the financial crisis 162 comparative advantage 35–8, 183–4 complex adaptive systems, science of 138 complex financial products 61–2, 187 computer-games-based money 138 confirmation bias 227 consumer demand marginal rate of substitution 180 revealed preference theory 180–1 consumption smoothing concept 149, 163 Corn Laws, attack by Ricardo 33–5 costs of production, relationship to value 75–7 credit expansion, as a driver of boom and bust cycles 123–4 crime and punishment, views of Becker 207–10 Darling, Alistair 112 Das Kapital (Marx) 52, 53–4, 59–61, 62, 67–8 decision making biases and errors in financial decisions 225–32 heuristics and bias in 222–5 Prospect Theory (Kahneman) 228–32, 234 under risk 228–32 demand side economics 127 depression Keynesian interventionist view 92–3, 94, 105–6 see also Great Depression (1930s) dialectic style of analysis 52, 54 Diamond, Peter 179 diminishing marginal utility 82 discrimination economic perspective of Becker 196–7, 198–9 views of Friedman 157 distribution of economic value (Marx) 54–6 division of labour and productivity 11–14 car production 20–1 in daily life 20–1 divorce rates 205 drug addiction, views of Becker 210–12, 215 Dubner, Stephen 234 Eastern Europe, influence of Hayek 140 Ebenstein, Larry 158 Economics: An Introductory Analysis (Samuelson, 1948) 168, 171–3, 188–9 Economics of Discrimination (Becker, 1957) 196–7, 198–9 Efficient Market theory 111, 112, 187 240Index elasticity of demand 82–4 Elizabeth II, Queen 158 emerging markets, offshoring of jobs to 41 endogenous growth 202 endowment effect 232, 234 Engels, Friedrich 52, 58–61 ethical judgements in economics 182–3 European Central Bank 161 exchange rates, impact of trade on 185–6 expected utility theory (EUT) 228, 229–30, 232 externalities 85 factor price equalisation theorem 186–7 Fama, Eugene 160, 187 family decision making economic perspective 183, 203–6, 213–15 welfare decision making 183 fiat currency 152 ‘fictitious capital’ concept (Marx) 62 financial decision making, biases and errors in 225–32 financial economics, work of Samuelson 187 First World War 95 Folbre, Nancy 206 Ford Model-T car, assembly-line production system 21 Foundations of Economic Analysis (Samuelson, 1947) 168, 169–70 Fox, Charles James 23 Freakonomics (Levitt and Dubner) 234 free-market mechanism of supply and demand 8–9 free market system view of Adam Smith 13–14, 16–18 view of Hayek 131–3 view of Friedman 155–7 free rider problem in public goods 177–8 Free to Choose (Friedman and Friedman, 1980) 158 free trade, influence of Adam Smith 22–3 Freeman, Richard 201 frictional unemployment 155 Friedman, David 156 Friedman, Milton (1912–2006) 94, 110, 145–64, 190–1, 196 advocate of the free market 155–7 belief in individualism 155–7 criticism of Keynesianism 149–50 early life and influences 147–8 economics in action 160–3 fiat currency 152 Free to Choose (1980 ) 158 influence of the Great Depression (1930s) 148 influence on modern economic theory 158–60 limited role of government in the economy 152, 155–7 long-term legacy 157–63 monetarism 151–2 monetarist rule 152 monetary policy 151–2 ‘natural’ rate of unemployment 153–5 new explanation for the Great Depression 150–1 Nobel Prize in economics (1976) 146, 147–8, 154, 161 non-accelerating inflation of unemployment (NAIRU) 153–5 permanent income hypothesis 148–50 role of money supply in the economy 151–2 verdict 163–4 Friedman, Rose (formerly Rose Director) 147, 148, 157, 158, 160 FTSE-listed plcs 86 Funk, Walter 108 Funk Plan 108 Galbraith, J.K. 159 gambler’s fallacy (misconception of chance) 224 General Agreement on Tariffs and Trade (GATT) 40 Index241 general equilibrium theory 8 genetically modified foods 42 geographical effects in economics 84–6 Giffen goods 84 global financial crisis (2007–8) 92, 174 and Keynesianism 111–13 global stimulus package 113 Marxist view 61–3 global free trade influence of Adam Smith 22–3 influence of Ricardo 40–2 global public goods 177–8 global recession (2009) see Great Recession (2009) gold standard, criticism by Keynes 95, 98, 107 government debt and the Great Recession (2009) 43 taxpayer view of (Ricardo) 38–9 government role in the economy anti-central planning view of Hayek 134–6, 140 Keynesian view 92–3, 94, 105–6 view of Adam Smith 9, 10, 16–18 view of Friedman 152, 155–7 Great Crash (1929) 98, 99 Great Depression (1930s) 19, 22–3, 85, 92 explanation of Friedman and Schwartz 150–1 influence on Friedman 148 influence on Keynes 99–100 role of the Federal Reserve 159 Great Recession (2009) 23 and government debt 43 arguments against protectionism 42 austerity versus stimulus debate 43–4, 140–1 Greece, sovereign debt crisis 113–14 Greenspan, Alan 111–12, 235 Grossman, Michael 212 Hansen, Lars Peter 160 Hayek, Friedrich (1899–1992) 110, 111, 119–42 business cycle theory 123–6 clash with Keynes 120, 126–31 collapse of the Soviet Union 140 early life and influences 120 emphasis on individual freedom 134–6, 140 explanation for boom and bust cycles 123–6 First World War 121 focus on supply side economics 127 influence in Eastern Europe 140 influence on George H.W.

pages: 288 words: 16,556

Finance and the Good Society
by Robert J. Shiller
Published 1 Jan 2012

But these reports tend to be reliable only for the biggest of companies: there is little incentive for reporters or investment analysts to get into the nitty-gritty of really evaluating every business that is looking for money to expand. Such reports are not pro table for their providers because they are not really of interest to a broad audience, only to those actively looking for investing tips. Moreover, any time one of those reports is issued, there is a free-rider problem: people will spread investing tips gleaned from the report to others (the free riders) who did not even pay for the report. Companies, at least large companies, do issue debt directly to the public, and some people try to avoid the need for bankers as intermediaries and invest directly in such company debt.

…

The o cers in those branches deal on a personal basis with the businesses to which they lend money, and they collect detailed information about what is really going on with these businesses, right down to evaluating those who run the companies—their trustworthiness, their real motivations and likely future behavior. There is no free-rider problem associated with the collection of this information since the bank does not publish it. Bankers traditionally make shortterm renewable loans and demand regular reporting from the companies to which they lend, and the managers of these companies know they had better maintain a good relationship with their bankers or risk having their loans called.

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Partly it is because we think that it is always risky to experiment with new things (such as new medicines) because their problems will be revealed only with time. Partly it is a problem with government nancial regulators, who may feel restricted by bureaucratic structures and the perceived need to respect past law, created in an earlier environment that did not anticipate a particular nancial innovation. Partly it is because of a free-rider problem: there is little incentive for the provider of a new nancial instrument or service to expend resources to educate the public on its value if that value will just go to other providers who will hop onto the bandwagon after its worth has been proven. For whatever reason, conventionality is a major factor inhibiting the application of nancial principles to the design of new nancial institutions.

pages: 314 words: 75,678

How to Avoid a Climate Disaster: The Solutions We Have and the Breakthroughs We Need
by Bill Gates
Published 16 Feb 2021

Building departments enforce efficiency requirements; transit agencies can go electric and influence the materials used in roads and bridges; waste management agencies operate large vehicle fleets and have influence over emissions from landfills. * * * — Back to the federal level for one last point: how rich countries can help eliminate the free-rider problem. There’s no way to sugarcoat the fact that getting to zero won’t come for free. We have to invest more money in research, and we need policies that drive the markets toward clean energy products that are, right now, more expensive than their greenhouse-gas-emitting counterparts. But it’s hard to impose higher costs now in exchange for a better climate later.

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We’ve already seen example after example around the world—Canada, the Philippines, Brazil, Australia, France, and others—in which the public makes it clear with their votes and their voices that they don’t want to pay more for gasoline, heating oil, and other basics. The problem is not that people in these countries want the climate to get hotter. The problem is that they’re worried about how much the solutions will cost them. So how do we solve the free-rider problem? It helps to set ambitious goals and commit to meeting them, the way countries around the world did with the 2015 Paris Agreement. It’s easy to mock international agreements, but they’re part of how progress happens: If you like having an ozone layer, you can thank an international agreement called the Montreal Protocol.

Crisis and Leviathan: Critical Episodes in the Growth of American Government
by Robert Higgs and Arthur A. Ekirch, Jr.
Published 15 Jan 1987

When foreign enemies are deterred from aggression against the United States, every person in the country receives the protection equally; and the all-inclusiveness can scarcely be avoided. Left to provide a nonexclusive public good in the market, people would provide little or nothing. As everyone held back, hoping to be the unexcludable free rider, no provision at all would be made. Government can break the stalemate created by the free-rider problem. By taxing all-or at least a sufficient number-of the beneficiaries of a public good, it can obtain the funds to pay for the good. Thorny issues remain even after government intervenes, because the appropriate amount of provision and The Sources of Big Government 11 the proper apportionment of the tax burden cannot be determined by any straightforward and practical procedure.

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Troubling questions about the aims, methods, risks, and costs of American military actions in Vietnam gained the attention of even more people; virtually no one could ignore or stand aloof from a conflict that claimed the lives of fifty-eight thousand U.S. servicemen, 86 percent of them white men, in a distant land of doubtful strategic importance. Second, the socially divisive crises of race relations and the war, widely felt as overriding moral issues, provoked massive participation in protests, demonstrations, and more conventional political activities: that is, ideologically motivated actions swept aside the free-rider problem. 34 Once masses of people had been politically motivated, activated, and organized, their solidarity greatly heightened in many instances by hostile encounters with ideological opponents or police, they readily extended their interests and energies in directions that seemed to them parallel to their original aims and actions.

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See also Cost-concealment Hypothesis Fish, Hamilton, 201 Flag words, 49-52 Flower, Benjamin 0., 86 Flower, Roswell P., 86 Food Administration, 134-138, 140, 143, 152, 176 Ford, Henry, 71 Ford Motor Co., 214 Foreign aid, 230, 236. See also Lend-lease Foreign Economic Administration, 226 Four Horsemen, 181, 183, 187, 192 Frankfuner, Felix, 64, 143-144, 156, 173, 192,197 Freedom of contract, 196, 208. See also Liberty of contract; Private property rights Free-rider problem, 10, 40, 250 Freidel, Frank, 169 Friedman, Lawrence, 82 Friedman, Leon, 148 Friedman, Milton, 87 Fuchs, Victor, 11-12, 69 344 Fuel Administration, 138, 140, 152 Fuller, Melville W., 101 Galbraith, j. K., 116, 163, 207 Galbraithianism, 247-248, 250 Garfield, Harry A., 138 Garrity, John, 170 Gary, Elbert H., 115 Gas lines, 254 Geertz, Clifford, 48-49, 55 General Electric, 214 General Maximum Price Regulation, 208209 General Motors, 214 George, Henry, 79 George, Walter F., 200 Gerber, Larry, 190 GI Bill of Rights, 229, 236 Gifford, Walter S., 128, 130 Gillam, Richard, 229, 241 Glass-Steagall Act, 164 Glazer, Nathan, 193 Godfrey, Hollis, 128, 130 Godkin, E.

pages: 338 words: 92,465

Reskilling America: Learning to Labor in the Twenty-First Century
by Katherine S. Newman and Hella Winston
Published 18 Apr 2016

The problem, then, lies in the “political economy of skill formation,” the delicate balance between what we incentivize workers to learn and how we protect them from the loss of their investment when jobs disappear.41 The US training system is fragmented and privatized. As a result, job seekers absorb much of the cost of acquiring human capital. Without assurances from companies that their jobs will be protected, potential trainees may underinvest in themselves. Meanwhile, firms face a potential “free rider” problem: the people they train may jump ship and sign on with firms that have not born this burden. These conditions pose a significant challenge to the development of apprenticeship programs or any other costly investment in skill training. Employers look over their shoulder, wondering who is going to rob them of their skilled workers and complain about not being able to find skilled labor rather than paying for the training that will guarantee that supply.

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As such, companies haven’t wanted to invest in vocational education and training that lasts for more than a few weeks or months. In other countries, that role is heavily subsidized, with taxpayers picking up about 70 percent of the overall costs in Germany. The political economy of government/private firm/union relations means that no one seems to worry about the “free rider problem,” in which a company invests heavily in training someone who may end up working elsewhere. The national investment in producing the most capable labor force in the world is enormous and politically sacrosanct. Corporate commitment to training in the United States is much weaker. American firms generally oppose the kind of government oversight of training programs that is mandated in Germany, where unions also play a powerful role in terms of management, education, and policy development.

pages: 251 words: 88,754

The politics of London: governing an ungovernable city
by Tony Travers
Published 15 Dec 2004

These arguments were particularly important in the period from the 1950s to the 1970s: ‘Critics of fragmented local governments argued that they were too small to achieve economies of scale’ (Swanstrom, 2001, p. 481). So smaller authorities would provide some services uneconomically, while others – ‘local public goods’ – would not be provided at all. This latter would happen in the case of facilities such as libraries and parks, which entail classic ‘free rider’ problems – the facility must be paid for by local citizens, while benefits are enjoyed by those in the whole metropolitan region. 155 156 The Politics of London Secondly, it can be argued that metropolitan government can better promote redistribution between rich and poor areas, reduce social segregation and promote solidarity between all citizens.

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(d’Arcy and MacLean, 2000) 41, 68, 71 Nolan, Lord (standards in public life) 89, 105, 122, 123 Nord-Pas de Calais 141 Norris, Steven 55, 62, 69, 70, 72–4, 76, 76t, 81, 91–2 North East England 45, 50 North West England 203 232 Northern Ireland 3, 8, 50, 114, 115, 201 Notting Hill Carnival 96 Number Ten Policy Unit 200 O’Brien, John 81 O’Neill, Redmond 86, 87, 102 Old Labour 45, 49 Ollerenshaw, Eric 85, 97, 99, 196 Olympic Games 112, 170, 171, 173 Ontario 174 opinion polls 47, 115, 116, 129, 159–60, 182, 194 Osborne, D. 19 Ottaway, Richard 52, 64 outer London 38, 205 Outer Metropolitan Area 4t, 4, 139 Outer South East 4t, 4 Ovid 183 Oxford English Dictionary 20 Parchment, Murzeline 82 Paris 30, 34, 113, 163, 164–7, 180 four tiers of government 164 Paris City Council 99, 164–6 parishes and vestries 24, 25, 26 Park Royal industrial estate 149 Parliament 21, 22, 23, 41, 48, 101 Berlin 168, 169 House of Commons 21 House of Lords 64, 151, 196 Palace of Westminster 23, 124, 159, 200, 201, 205, 207 ‘Westminster politics’ 29 partnership ‘key concept’ 12 partnerships 138, 148, 154, 204–5 sub-regional 143–6 party politics: absent 175 patronage 68, 110–11, 160–1, 185, 200 Patten, Chris 69 Pelling, Andrew 85 Pelling, Tony 32 People’s Party (Spain) 173 People’s Question Time 135 persuasion 68, 185 Peterson, Paul 14 Phillips, Ruth 87 Index Phillips, Trevor 62, 71, 72, 97, 135–6, 196 Picketts Lock (Enfield) 204 Pilgrim, Martin 81, 143 Pimlott, Ben 193 planning 27, 28, 29, 36, 166, 194t, 195t planning/spatial development 81 planning policy 104 Plummer, Desmond 29 police (nationally) 132 police 66, 86, 96 policing 53, 86, 127, 146, 179, 180, 184, 196, 197 policy regime (concept) 15 political parties 159, 164, 171, 188 politics of identity 158 pollution 39 Port of London Authority 187f, 209 Portillo, Michael 69 poverty 50, 152 PPP see public–private partnership prefects (France) 165 Prescott, John 50, 52, 54, 57 PricewaterhouseCoopers 92 Prime Minister 13, 107–8, 159, 199 Prisons Service 127 private sector 17, 19, 32, 33, 83, 89 privatization 12, 17, 48 Pro-Motorist and Small Shop Party 76, 77t property 39, 139, 149 proportional representation 9, 59–60, 78, 114 Additional Member System 60 Alternative Vote system 59 Berlin 167 de Hondt formula 76 second preference votes 75, 76t, 122 Supplementary Vote (SV) system 59 PSL (private sector lending) scheme 39 ‘public choice’ (New Right) critique 14, 157 public expenditure/spending 12, 193 France 166 local 16 public sector 32, 140, 154 public service delivery 137 public service workers 139 Index public services 17, 19, 26, 35, 43, 48, 50, 53, 78, 89, 104, 123, 124, 126, 155, 157, 182, 188, 191, 195t, 198, 210 Berlin 168 France 165–6 ‘free rider’ problems 155 improvements 44 public–private partnership (PPP) 17, 48, 54, 66–7, 72, 88, 111, 117, 153, 184, 192 publicity 68, 185 Puttman, Steve 53 quality of life 35 quality of politicians 181 quangos 36, 37, 51, 83, 100, 144, 146–9, 184, 208 Quarmby, David 91–2 quasi-markets 48 Queen in Parliament 13 race relations 86, 96 ethnic minorities 8, 11, 44, 74, 89–90, 178 see also community groups railways 111, 147, 170, 192, 206, 207, 210 see also bus services; commuting; London Underground Randall, Simon 62 Rao, Nirmala 193 Rassemblement pour la République (RPR) 165 Raynsford, Nick 52, 53–4, 62, 63–4, 66, 71, 72, 82, 87, 143, 160 Reading 10 Redbridge 43 redistribution 17, 156 Reforming London (Davis, 1988) 41 regeneration funds/projects 33, 37, 98, 116 regional development agencies (RDAs) (England, 1999–) 34, 50, 57, 65, 89, 127, 128t, 129, 132, 137, 140, 142, 144, 150 regional offices 149 233 ‘regulation’ school (France) 17 Rendall, Gill 53, 82 research organizations 139 residents’ groups 191 Richards, Martin 119 Ritchie, Tony 93 RMT (trade union) 91 roads 27, 29, 185, 207, 210 car users 191 congestion 149 parking 39, 66, 143, 202 Motorway M25 38, 139 ringways or motorway box 29 traffic 39 see also congestion charging Robertson, Alex xii Robinson, Brian 131 Robson, William 28 Rogers, Lord (Richard) 10, 95, 121 Rome 163, 173 Romney House (Westminster) 80, 83, 84, 95, 101, 108, 109, 118, 132, 135 Ross, John 84, 86, 87, 89, 102, 103, 152 Rotterdam 158 Rowe, Charlotte 101 Royal Commission on the City Corporation 23 Royal Commission on Municipal Corporations (1837) 23 Ruiz Gallardon, Alberto 172–3 Rutelli, Francesco 173 St Giles, Emma 86 Salisbury, Lord 26 Savas, E.

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The Price of Everything: And the Hidden Logic of Value
by Eduardo Porter
Published 4 Jan 2011

But the analogy also highlights creators’ existential problem: somebody has to pay for the lighthouse’s light. The light and the movie won’t happen unless shipowners and Batman fans can be made to pay for them. Lighthouses—like clean air and national defense—are known because of their peculiar nature as “public goods.” The fact that consumers can use them without paying has a name too: the “free rider problem.” It is a problem because private companies cannot earn enough money from selling public goods to give them a reason to produce them. So left to the private sector, they won’t be produced. Transported to the Internet era, the argument suggests that if information becomes truly free, we will stop producing any.

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electricity elephant-seal cows Elías, Julio Jorge e-mail, spam and Emergency Highway Energy Conservation Act (1974) Empire State Stem Cell Board encyclopedias, free energy engagement rings engineers England environment see also climate change; pollution Environmental Protection Agency (EPA) Epson ESP printers Essay on the Principle of Population, An (Malthus) Ethiopia Ethnographic Atlas (Murdock) eToys Eurobarometer surveys Europe Catholic Church in decline of polygamy in happiness in lack of sprawl in U.S. compared with work hours in see also Western Europe European Climate Exchange European Union evangelical Christianity executive pay ExxonMobil faith benefits of cheap cost of Fallaci, Oriana families changes to culture and income of of 9/11 victims size of Fanning, Shawn (the Napster) Federal Communications Commission Federal Food, Drug, and Cosmetic Act, Delaney Clause to (1958) Federal Reserve Federal Trade Commission (FTC) “Feeding the Illusion of Growth and Happiness” (Easterlin) Feinberg, Kenneth fertility decline in female file sharing film financial crises financial services fines fire departments fishing floors Florence foeticide food culture and faith and preparation of price increases for surpluses of Food and Agriculture Organization Food Quality Protection Act (1996) Ford Ford, Henry Foreign Corrupt Practices Act Fourier, Charles France happiness in work hours in Frank, Robert Free (Anderson) Freedom Communications free lunch, use of term free rider problem free things broadcast TV and movies music and Napstering the world and profiting from ideas freeware Freud, Sigmund fuel see also gas Fundamentalist Church of Jesus Christ of Latter-day Saints future ethics of mispricing nature and price of Gabaix, Xavier Gallup polls Gandhi garbage gas price of General Motors (GM) General Social Survey General Theory of Employment, Interest and Money, The (Keynes) genetics, genes Germany happiness in Germany, Nazi Gershom ben Judah Ghosts I-IV (album) gifts Glass-Steagall Act (1933) GlaxoSmithKline globalization global warming Goa God Goldin, Claudia goods Google Google News Gore, Al Gorton, Mark government hostility toward intervention of resource allocation of Great Britain bubbles in gas prices in happiness in politics in Great Depression Greece, ancient green revolution (1960s and 1970s) Greenspan, Alan gross national happiness (GNH) index Haiti Hammurabi Hanna, Mark happiness faith and genetics and life-cycle curve of loss aversion and money and problems with defining of right-left gap in U.S. trade-off and Hare Krishna Society Harvard University Haryana health health care health insurance Health Ministry, New Zealand Healthway Heinrich, Armin Hindus, Hinduism HIV homeland security, U.S.

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Sickening: How Big Pharma Broke American Health Care and How We Can Repair It
by John Abramson
Published 15 Dec 2022

(Even though drug companies generated only one-fifth of the revenues in this sector, they raked in almost half the profits.) Calculated differently, from 2000 to 2018, the earnings as a percentage of sales were almost twice as high for the drug industry (13.8 percent) as for the S&P 500 (7.7 percent). Neither does the so-called free-rider problem (the claim that other wealthy countries, all of which have lower prices, don’t contribute their fair share of drug research and development costs) justify this level of profitability. In 2015, the manufacturers of the twenty top revenue-generating drugs in the world set their U.S. prices two and a half times higher than in other wealthy countries.

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See University and Small Business Patent Procedures Act Berkshire Hathaway, 188–89 Berman, Paul, 138–39 Bernanke, Ben, 194–95, 208 Bextra, xxiv–xxv, 24 Biden, Joe, 203–5 Biogen, 233–34 Bok, Derek, 110, 132 Bourla, Albert, xvii, xviii, xix Bradley, Elizabeth, 187 branding, 148–59 Brill, Steven, 195–96 British Medical Journal (BMJ), 55, 126, 128, 171, 173 retraction demand, 52–53, 56 Buffett, Warren, 102 Burson-Marsteller marketing firm, 69 Business Roundtable, 92, 95–96 Cafasso, Edward, 15 Canada, 65, 91, 171 Capitalism and Freedom (Friedman), 216 cardiovascular risk hard or soft events, 49–50 healthy lifestyle, 50, 54, 57, 115–16 numbers needed to treat (NNT), 50 See also ACCORD study; statins; Vioxx Carter, Jimmy, 94 Case, Anne, 93, 101–2 Cavazzoni, Patrizia, 233 Celebrex, xxii, 1, 4, 6–7, 9–10, 161 Celecoxib Long-Term Arthritis Safety Study (CLASS), 7 Centers for Disease Control and Prevention (CDC), 58, 78, 128, 158 Centers for Medicare and Medicaid Services, 68 Cholesterol Treatment Trialists [CTT] Collaboration, 46–47, 49–53, 56 See also statins Choosing Wisely campaign, 227 Cicero, Theodore J., 157 City of Hope National Medical Center, 62 clinical practice guidelines (CPG), xiii, 69, 105, 107, 118, 123, 131–33, 146, 226 financial conflicts of interest, 129–30 and health technology assessment, 218–20 oversight of, 169–71 See also statins clinical study reports (CSR), 119, 125, 127–28, 173–76, 213 Clinical Therapeutics, 35 clinical trials academic medical centers (AMCs), 111–12, 121 data and funding, 42–44, 105–6, 109, 111–13, 124, 168 design bias, 113–15 drug company confidentiality, 47–48, 56, 120–21 drug company misinformation, xxv, 35, 142, 161 drug company non-public information, 118–19, 125, 168–69, 224 drug company ownership, 116–17 drug company role, 120 healthy lifestyle options, 210 observational trials, 200 outcome bias, 124–25 peer-reviewed medical journals, 124–25 refocus on optimal care, 209 surrogate end points, 200 testing against best proven intervention, 209–10 See also 21st Century Cures Act Clinton, Bill, 95, 194 Cochrane Collaboration, 63–64, 122, 127–28 Collins, Rory, 52, 56 commercially funded research, xiii, 111, 113, 126, 132, 156, 177 Commonwealth Fund, 87–88, 221 congress and health care, 199 Big Pharma or citizens, 199 lobbying expenditures, 96–97, 201 See also 21st Century Cures Act Congressional Budget Office (CBO), 180 contract research organizations (CROs), 111–12, 119–20 Corbett, Steve, 139 Couric, Katie, xxii COVID-19 pandemic, 231 COVID-19 Technology Access Pool (C-TAP), xviii COVID-19 vaccines finances of, xiv–xviii low-and middle-income countries, xviii–xx separate manufacturer studies, 211 COX-2 inhibitors, 4, 9–10, 14 Crapo, Mike, 195 Curfman, Gregory, 11, 14–15 Cutler, David, 84, 91, 102 cystic fibrosis, xiii, 183–84, 220 D’Amelio, Frank, xvii Dartmouth College, genetic engineering technology, xv data transparency, 56, 176, 212–13, 217 asymmetry of information, 168, 225 EBM and, 122, 146 journal requirements, 174–76 lack of awareness, 106 unverified data summaries, xiii Deaths of Despair and the Future of Capitalism (Case, Deaton), 102 Deaton, Angus, 93, 101–2 Declaration of Helsinki Ethical Principles for Medical Research, 209–10 DePuy Orthopedics, 135–41, 153 diabetes disease incidence, 58, 75–77 drug costs, 68, 72, 74, 77–78, 165 healthy lifestyle, 67, 76–78 history of, 58 ketoacidosis, 60–61, 66, 74 metformin, 67 type 1 autoimmune disease, 60, 66–67 type 2 insulin resistance, 66–67 type 2 treatment, 67, 72–73 See also insulin therapy diabetes medicine Aim-Believe-Achieve campaign, 69 Bridges to Excellence (BTE), 69 Humalog, 59, 63, 65 Humulin R or N, 62 Lantus, 59, 63, 65 REWIND study, 178 side effects, 72 See also Trulicity Diabetes Prevention Program Research Group, 57, 75–78, 210 Diabetes Quality Improvement Project (DQIP), 68 Direct to Consumer Advertisers’ convention, 162 direct-to-consumer (DTC) advertising, 152–3, 214–15 “Don’t Give More Patients Statins” (Abramson, Redberg), 46 Drazen, Jeffrey M., 7, 11–13, 15, 175 drug companies advertising agencies and, 112 confidentiality of information, 47–48, 56, 120–21, 141–42 finances of, xxvi–xxvii profit margins, 179–80 research funding, 109–11, 177 research ownership, 116–17 See also clinical trials; marketing and sales drug price regulation, 105, 163–67 Ekdahl, Andrew, 138 Eli Lilly, 61–62, 65, 70 EMERGE and ENGAGE studies, 232 See also Alzheimer’s disease European Atherosclerosis Society, 55 evidence-based medicine (EBM), 109, 122–23, 127 article overviews and meta-analyses, 126–29 Fauci, Anthony, xviii, 211 FDA Center for Drug Effectiveness and Research, 233–34 fentanyl, 158 financial ties, 5, 44–45, 48–49, 70, 224–25 AACE and ADA, 73 article authors, 127 clinical practice guidelines, 131 FDA rules, 233–34 medical journals, 172–73 principal investigators and, 124 Financial Times, 97 Food and Drug Administration (FDA) Aduhelm approval, 232–33 approval requirements, 135, 141, 169 direct-to-consumer (DTC) advertising, 214–15 market exclusivity, 163 Neurontin application, 34 Nexium application, 149–50 OxyContin false label, 156 OxyContin reformulation, 158 Vioxx data, 4, 7–8, 17 weakening of approval standards, 200 “forced titration” study, 31, 33, 36, 114 Ford, Gerald, 93 Fortune, 93 Frazier, Ken, 18–19 free-rider problem, 166 Friedman, Milton, 94, 216–17 Fuchs, Victor, 102–3 gabapentin. See Neurontin Galbraith, John Kenneth, 92 Genentech, 62 genetic engineering technology, xv, 62 Georgieva, Kristalina, xix German Institute for Quality and Efficiency in Health Care, 124–25 Germany, 154, 171 Ghebreyesus, Tedros, xviii Gilead, 182–83 Gilens, Martin, 199 Gilmartin, Ray, 97 Gingrich, Newt, 219 Godlee, Fiona, 52 Goozner, Merrill, 44 government funded research, xii, xxvi, 54, 109, 177, 182, 200, 211 government relations, fines and legal settlements, 97, 216–17 Graham, David, 10 Grassley, Charles, 194–95, 222 Greenspan, Alan, 94 Gruber, Jonathan, 84, 102, 195, 201 Haven joint venture, 188–89 Hayashi, Keiji, 127 health-care costs, xii–xiii health-care economics cardiovascular mortality, 91 country comparisons, 87–88, 185, 187 drug costs, 93, 104–5, 163–64, 199, 225 employee costs, 99–100 excess spending, 85–86, 103 healthy life expectancy, 86–87 increasing costs, 84–85.

Social Capital and Civil Society
by Francis Fukuyama
Published 1 Mar 2000

Coleman has pointed out, social capital, like many forms of human capital, is a public good and therefore subject to systematic underinvestment by competitive markets. Firms will have an incentive to invest in firm-specific social capital (e.g., socializing workers into their particular corporate culture) but will tend not to invest in nonfirm specific social capital because of free rider problems. W e are thus led to the question of generating social capital in the broader society. To understand how this can be done, we need to look at the question of the sources of social capital more systematically. 24 Masahiko Aoki, “The Japanese Firm as a System of Attributes: A Survey and Research Agenda,” Economie I nd us trielle ( 1994) : 83-108. 25 See Joseph B.

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Roads and Bridges
by Nadia Eghbal

Talk to developers who found a way to pay themselves, and you’ll hear the word “lucky” thrown around: lucky to have been hired by a company, lucky to have gotten publicity and donations, lucky to have stumbled upon a business model, lucky to not have a family or mortgage to worry about. Everybody is getting lucky. Luck lasts for a couple of months, maybe a year or two, and then it runs out. Why is it so hard to fund digital infrastructure? Fundamentally, digital infrastructure has a free rider problem. Resources are offered for free, and everybody (whether individual developer or large software company) uses them, so nobody is incentivized to contribute back, figuring that somebody else will step in. Left unchecked, this will lead to a tragedy of the commons. In addition to the macroeconomic challenge of the commons, there are several reasons why supporting digital infrastructure is particularly complicated.

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Phishing for Phools: The Economics of Manipulation and Deception
by George A. Akerlof , Robert J. Shiller and Stanley B Resor Professor Of Economics Robert J Shiller
Published 21 Sep 2015

Paltrow, “Executive Life Seizure: The Costly Comeuppance of Fred Carr,” Los Angeles Times, April 12, 1991, accessed May 1, 2015, http://articles.latimes.com/1991-04-12/business/fi-342_1_executive-life. 19. This problem has been described in Sanford J. Grossman and Oliver D. Hart, “Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation,” Bell Journal of Economics 11, no. 1 (1980): 42–64. 20. Connie Bruck, The Predators’ Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders (New York: Penguin Books, 1989), pp. 193–240; Robert J. Cole, “Pantry Pride Revlon Bid Raised by $1.75 a Share,” New York Times, October 19, 1985, accessed March 17, 2015, http://www.nytimes.com/1985/10/19/business/pantry-pride-revlon-bid-raised-by-1.75-a-share.html. 21.

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“Used Car Sales Figures from 2000 to 2014.” Accessed December 1, 2014. http://usedcars.about.com/od/research/a/Used-Car-Sales-Figures-From-2000-To-2014.htm. Grossman, Gene M., and Elhanan Helpman. Special Interest Politics. Cambridge, MA: MIT Press, 2001. Grossman, Sanford J., and Oliver D. Hart. “Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation.” Bell Journal of Economics 11, no. 1 (1980): 42–64. The Guardians, or Society for the Protection of Trade against Swindlers and Sharpers. London, 1776. https://library.villanova.edu/Find/Record/1027765. Hahn, Robert W., Robert E. Litan, and Jesse Gurman.

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Rewriting the Rules of the European Economy: An Agenda for Growth and Shared Prosperity
by Joseph E. Stiglitz
Published 28 Jan 2020

The financial crisis exposed the basic flaw with the rating agencies, the institutional arrangement for providing information on securitizations. Being paid by the seller of the securitizations created an incentive to provide a good rating. It might seem to make more sense for the buyer of the securities to pay for the information, but there is a free-rider problem in organizing markets in this way. If informed buyers (who have spent money to get their information) bid up the price of a security, uninformed buyers will infer that the informed investors know that the stock is worth more. Indeed, if capital markets were as informationally perfect as its advocates claim, the uninformed could get just as high returns on their investments without paying the cost of information.

…

Climate Change Addressing climate change is an existential issue for the world. It is a global problem that can only be solved by global reductions in carbon emissions. Climate change is a global public good (or more accurately, a public bad) because everybody is affected by it. Hence, there is the classic free-rider problem: everyone would like others to bear the burden of reducing emissions while they themselves enjoy the benefits. The Paris agreement represented a global consensus on the need to limit emissions, with voluntary reductions on the part of each country. The hope was that if everyone saw that there was a global commitment to reduce carbon emissions, everyone would want to join in, and those slow to adopt green technologies would fall behind.

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Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever
by Robin Wigglesworth
Published 11 Oct 2021

Boles), 185 Black Monday of 1987, 123, 125, 170–73, 177, 178, 189, 189n, 209 BlackRock Financial Management, 17, 209–21 BGI acquisition, 203, 204–6, 215–16, 221, 222–34 climate change and, 290–93 financial crisis and, 219–21 founding of, 209–12 “Giant Three” scenario, 297–99 gun stock boycott, 285–87 Icahn on, 271 IPO, 214–15 MLIM acquisition, 217–19 naming of, 213–14 SSR acquisition, 216 Black-Scholes-Merton model, 71, 147, 152–53 Blackstone Financial Management (BFM), 210–14 Blair Academy, 89–90 BLES Inspire Global Hope ETF, 238–39 blitzscaling, 200, 239–40 Bloom, Steven, xii, 171–72, 173–74, 177, 178 Bloomberg, Michael, 78n, 149 Bloomberg Barclays Aggregate, 17 BM Personal Computer, 145 Boening & Company, 92 Bogle, David Caldwell, 89 Bogle, Eve Sherrerd, 13, 93–94 Bogle, John “Jack,” ix, 86–105, 244, 276, 296, 302 assistants of, 108, 125, 126–30 background of, 87–88 at Berkshire meeting of 2017, 12–14, 19 billion-dollar milestones of Vanguard, 119–20, 121 corporate governance and public policy, 287 “cost matters hypothesis,” 108, 280 CRSP seminars, 53, 146 DFA and Booth, 146 dinners, 127–28 early finance career of, 86–88, 92–96 early life of, 88–90 education of, 89–92 eighty-eighth birthday of, 12–13, 14 ETFs, 166–68, 239 founding of Vanguard, 11–12, 104–10, 104n free-rider problem, 279 funeral of, 134–35 on “Giant Three” scenario, 299 growing pains at Vanguard, 124, 125, 126 gun stocks and, 286 heart attacks of, 93–94 heart transplant of, 12, 130–31 media and press, 120–21 nickname of “Saint Jack,” 120, 132, 303 personality of, 125 126–27 on Purdey shotgun, 239 schism with Brennan, 130–34 setting up first FIIT (“Bogle’s Folly”), 107–17 “strategy follows structure,” 107 at Wellington Management, 53, 88, 92–104, 130 Bogle, Josephine Lorraine, 88–89, 90–91 Bogle, William Yates, Jr., 88–89, 90–91 Bogle, William Yates, III “Bud,” 88–89, 90, 130, 133 Bogle Financial Markets Research Center, 132–33 Bogleheads, 15, 132 “Bogleisms,” 127–28 Bohr, Niels, 301 bond ETFs, 248, 271–73 bond funds, 275n bond indices, 259–62 Booth, David Gilbert, xii, 138, 139–46 at AG Becker, 141–43, 146 background of, 139–40 at Chicago, 50, 140–41 at DFA, 138, 144–51, 159–60, 162–63 Klotz’s departure, 156–59 at Wells Fargo, 70–71, 75, 138 Booth, Gilbert, 139 Booth School of Business, 157–58 Boston Celtics, 136 Boston Chicken, 137 Boston Globe, 114 Box, George, 51–52 Braham, Lewis, 89, 98n Branson, Richard, 295 Breakfast Club, The (film), 227 Breeden, Richard, 179–80 Brennan, Frank, 128–29 Brennan, Jack, xi, 120–21, 123, 125, 128–34, 240 background of, 128–29 schism with Bogle, 130–34 British East India Company, 300 Brooklyn Bridge, 150 Brown, Robert, 25 Bryn Mawr Presbyterian Church, 134–35 Buffett, Warren, ix, 83, 133, 267n Bogle and, 12–14, 19 on coin flips, 6–7 ESG push and, 294 on hedge funds, 1–3 on pension fund investing, 4–5, 7, 8 on professional fund managers, 4–8, 16–17 wager with Seides, 1–2, 3–4, 6, 9–11, 15–17, 267n bull markets, 5–6, 119, 121, 144–45 Burkart, David, 194n BusinessWeek, 35, 119 Butler, Dave, 136–48 background of, 136–37 at DFA, 137–39, 144–48, 163 California Golden Bears, 136 California Gold Rush, 57, 75 California State University, 206 Campbell, Gordon, 64–65 CANSLIM, 137, 152 “Can Stock Market Forecasters Forecast?”

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See Dimensional Fund Advisors DFA Way, 163–64, 165 Diamond, Bob, 198, 202, 203–5 Dimensional Fund Advisors (DFA), 144–51, 159–65 board of directors, 146–47 Butler at, 137–39, 144–48 conferences of, 138, 163–64 factor investing approach of, 156, 159–60, 163, 191 Financial Advisor Services, 163 first fund (9-10 Fund), 148, 150, 151 founding of, 144–46 investment funds, 154, 156, 159–60, 162–64 Klotz’s departure, 156–59 Schroders’ investment, 145, 160 Wheeler at, 138, 161, 162–64 direct indexing, 249–50 diversification, 7, 40–41, 138, 142–43 dividend yield, 263 Donaldson, Lufkin & Jenrette, 35, 109 Doran, Robert, 94–96, 97–99, 102, 116–17, 118, 131, 133 dot-com bubble, 51, 154, 156, 197, 214, 215, 246 Dow, Charles, 27, 29, 152 Dow Jones Industrial Average, 7, 29, 34, 252 Dow Theory, 27, 151–52 Duffield, Jeremy, 94, 124, 125, 129, 130, 134 Dunn, Patricia, xiii, 192–95 background of, 193–94 at BGI, 192–95, 196–99, 201–2, 215, 232 cancer of, 201–2, 215 at Hewlett-Packard, 193, 202 at WFIA, 185–86, 192–95 Dunn, Ruth, 193 Eastman Kodak, 5–6 Eastwood, Clint, 189 École Polytechnique, 23 “Economic Role of the Investment Company, The” (Bogle), 91–92 Eendragt Maakt Magt, 300–301 “Efficient Capital Markets: A Review of Theory and Empirical Work” (Fama), 50 Efficient Frontiersmen, 82 efficient-markets hypothesis, 48–52, 63, 64, 65, 67, 106–7, 152–55, 160, 165, 268, 280 Einstein, Albert, 25 Eisenreich, Gary, 180, 181 Elhauge, Einer, 296–97 Elliott Management, 19, 287–88 Ellis, Charles, “The Loser’s Game,” 35, 109, 186, 276 emerging markets, 257, 258 employee stock options, 194–95 Engel, Louis, 30–31 environmental, social, and governance (ESG), 290–94 “equal-weighted” indices, 76–77 ETFMG Prime Cyber Security ETF (HACK), 241 Evercore, 219 exchange-traded funds (ETFs), 17, 239–46, 262–64 actively managed, 244–46 Amex and Most, 166–68, 173–76, 178–79 BGI and, 196–201, 233–34 biblical, 236–39 bond, 248, 271–73 sustainability-focused, 291–92 thematic, 241–42, 246 exchange-traded products (ETPs), 247–48 executive compensation, 194–95, 289, 296 ExxonMobil, 269–70 Facebook, 255, 256 factor investing, 151, 155 154, 159–60, 191 Fair, Bill, 61n Fair, Isaac and Company, 61 Fama, Eugene, x, 37, 46–52 background of, 46–48 “The Behavior of Stock-Market Prices,” 48–50 at Chicago, 47–50, 140 at DFA, 146–47, 157, 159–60 efficient-markets hypothesis, 48–52, 63, 139, 152, 268, 280 three-factor model, 155–56, 159–60 Wells Fargo and, 70 Fama, Guy, 45–46 Fama, Sallyann Dimeco, 46–47 Fannie Mae, 219 “fat tails,” 49, 51 Federal Reserve, 115, 119, 270, 273 Federal Trade Commission (FTC), 294, 295–96 Feldstein, Paul, 34 Ferguson, Alex, 218 Fernandez, Henry, 259 Fernando, Elizabeth, 274–76, 278–79 Fichtner, Jan, 256–57 FICO (Fair, Isaac and Company), 61 Fidelity Investments, 18, 34, 114, 122, 223, 233, 244, 283 Fina, Philip, 117 Financial Analysts Journal, 34–35, 50, 86, 87–88, 109 financial crisis of 2007-2008, 51, 203–4, 219–21, 236, 275n Financial Times, 252 Fink, Larry, xiii, 206–12, 273 background of, 206–7 at BlackRock, 209–21, 234–35 BGI acquisition, 204–6, 215–16, 222–34, 235 financial crisis and, 219–21 founding, 209–12 IPO, 214–15 MLIM acquisition, 217–19 naming, 213–14 climate change and, 289–93 at First Boston, 207–9 on “Giant Three” scenario, 298–99 Icahn and, 271 Fink, Lori, 206–7, 291 fire insurance, 27–28 First Boston, 207–9 First Chicago Bank, 81, 141–42 Fisher, Lawrence, 32–33, 49, 52–53, 70 fixed commissions, 79, 111 Forbes (magazine), 91n, 105 Ford, Gerald, 115 Ford, Henry, 232–33 Fort Knox, 17 Fortran, 44, 66 Fort Riley, 63 Fortune (magazine), 10, 15, 91, 111–12, 151 401(k) retirement plans, 119, 120 Fouse, William, xi, 53, 72–74 background of, 72–73 on Goebbels, 85, 164 at Wells Fargo, 73–74, 75, 81, 184, 187, 189n, 194 fractional shares, 250 Francis, Glenn, 176 Franklin Custodian Funds, 94 Franklin Templeton, 234 Fraser-Jenkins, Inigo, 242–43, 279 Frater, Hugh, 210, 212, 219 free-rider problem, 279 French, Ken, 155–56 Freud, Sigmund, 31 Friedman, Milton, 24, 41, 141 frontier markets, 257 FTSE Russell, 111n, 252 FTSE 100, 7, 249, 256 Galbraith, John Kenneth, 26 Galbraith, Steven, 11–14 Gauss, Carl Friedrich, 49 Gaussian distribution, 49 General Electric, 115, 143, 220 Getz Bros., 169–70 “Giant Three” scenario, 297–99 Gibson, George Rutledge, 50 Girls Inc., 9, 16 Glass, Lewis & Co., 288–89 Glass-Steagall Act, 75, 122 Goddard, Bruce, 186, 193, 194 Goebbels, Joseph, 85, 164 Golden State Warriors, 56 gold funds, 17, 242, 262–63 Goldman Sachs, 189, 207, 234 Goldstein, Rob, 220–21 Golub, Ben, 209–12, 226 Google, 255, 256 Gore, Al, 293 Gormley, Todd, 290 Gould, Jack, 147 Graham, Benjamin, 7, 52, 83, 152, 154 Graham, Katharine “Kay,” 4, 6, 10, 36 Graham and Dodd Awards, 87 Grantham, Jeremy, 66–68 Grauer, Frederick “Fred,” xii–xiii, 186–93 background of, 186–87 BGI and BlackRock, 228–29, 232 at Merrill Lynch, 187–88 at WFIA, 188–93, 194 departure, 192–93 Great Crash of 1929, 27, 88, 89, 92, 225–26 Great Depression, 26, 30, 39, 40, 88, 122, 169, 214 “Great Man” theory, 57–58 Greece, 258 Green, Michael, 266–71, 281 “greenwashing,” 290 Greenwich Associates, 35, 109 Griffin, Ken, 2 Gross, Bill, 124, 261 Grossman, Blake, 185, 191, 196, 200, 225–26, 227 Grossman, Sanford, 280 Grossman-Stiglitz Paradox, 280 Gucci, 198 Hahnemann Hospital, 130–31 Hallac, Charlie, 211, 212, 219, 229 Hangzhou Hikvision, 259 Harvard Business School, 60, 65–66, 67, 128 Harvard Law School, 296–97, 298 Harvard University, 40, 47, 171, 223, 292 Hauptfuhrer, Barbara, 98n Haynes, Peter, 179n hedge funds, 2, 18, 283 Buffett-Seides wager, 1–2, 3–4, 6, 9–11, 15–17 Hedgehog and the Fox, 88 Heemskerk, Eelke, 256–57 Hellman & Friedman, 201 Herbst, Clarence, 278 Hewlett-Packard, 193, 202 Hirst, Scott, 298 Hogg, David, 285–86 Holland, Mary Onie, 83 Holmes, Douglas, 176 Honeywell, 150 How to Buy Stocks (Engel), 30 Hughes, John, 227 Hume, David, 39 Ibbotson, Roger, 64, 144, 147 IBM, 28, 43, 44, 56–57, 60, 83, 143 IBM Personal Computer, 145 IBM 305 RAMAC, 59 IBM 7090, 44, 56 Icahn, Carl, 271 Illinois Bell, 75, 77, 84 incremental investing, 269 Independent Adviser for Vanguard Investors, 121 indexes, 7, 29–30, 242–44, 251–62.

Drunk: How We Sipped, Danced, and Stumbled Our Way to Civilization
by Edward Slingerland
Published 31 May 2021

Any time tension arises between the public good and individual interests there is the danger of what economists call “defection,” a situation in which a selfish individual benefits from the public good while not contributing to it. This tension goes by many names, including the “tragedy of the commons” or the “free-rider problem.”44 Fish populations diminishing? It would be better if everyone agreed to fish less, but on the open seas how do you enforce this? No one wants to be the sucker who stayed home while her rivals went out and scarfed up the last of the bluefin tuna. So the bluefin tuna gets driven to extinction.

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These sorts of cooperation challenges pervade the human social world on every scale of interaction. They hamper global efforts to combat climate change, cause political parties and economic cartels to fracture,45 and often force individuals into difficult choices. One such choice is the basis of the famous Prisoner’s Dilemma thought experiment, which vividly illustrates a variant of the free-rider problem. Imagine you have been detained and accused of committing a crime. The prosecutor tells you that another suspect in the same crime, of whom you know nothing, has also been detained. You are offered a deal: Rat out the other person and you will get a slap on the wrist, a one-month sentence, while the other person will get the full three-year sentence.

Economic Origins of Dictatorship and Democracy
by Daron Acemoğlu and James A. Robinson
Published 28 Sep 2001

The only obvious exception is when the agent making the decision between taking part and not taking part in revolutionary activities is “pivotal” in the sense that his or her participation would ensure or signiﬁcantly increase the chance of success of the revolution and his or her nonparticipation would mean failure or a signiﬁcantly reduced chance of success. Because there are numerous citizens, the action of a single one is typically not decisive for the outcome of the revolution. This introduces the famous collective-action or free-rider problem: no citizen should be 124 Nondemocratic Politics willing to make the necessary investment in revolutionary activities and the threat of revolution will disappear. The literature on the collective-action problem, including Olson’s (1965) The Logic of Collective Action, identiﬁed a number of ways that groups can attempt to deal with collective-action problems, including the use of ideology and pecuniary beneﬁts.

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One reason that politicians might care about aggregate welfare is because of electoral politics; for example, in the last subsection, the vote share that he or she receives might depend on the welfare of each group (Grossman and Helpman 1996). Now consider the problem of an individual i in group n. By contributing some money, he or she might be able to sway the politician to adopt a policy more favorable to his or her group. But he or she is one of many members in his or her group, and there is the natural free-rider problem associated with any type of collective action (see Chapter 5). Consequently, he or she might let others make the contribution and simply enjoy the beneﬁts. This is the typical outcome if groups are unorganized (e.g., there is no effective organization coordinating their lobbying activity and excluding noncontributing members from some of the beneﬁts).

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Feuchtwanger (eds.). Social Change and Political Development in Weimar Germany; London: Croon Helm. Moore, Barrington (1966) The Social Origins of Dictatorship and Democracy: Lord and Peasant in the Making of the Modern World; Boston: Beacon Press. Moore, Will H. (1995) “Rational Rebels: Overcoming the Free-Rider Problem,” Political Research Quarterly, 48, 417–54. Morrisson, Christian (2000) “Historical Evolution of Income Distribution in Western Europe,” in Anthony B. Atkinson and François Bourguignon (eds.). Handbook of Income Distribution; Amsterdam: North-Holland. Morrisson, Christian, and Wayne Snyder (2000) “The Income Inequality of France in Historical Perspective,” European Review of Economic History, 4, 59–84.

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Everyday Utopia: What 2,000 Years of Wild Experiments Can Teach Us About the Good Life
by Kristen R. Ghodsee
Published 16 May 2023

“Let everyone enjoy an equal living; no more rich men here, poor men there; no more farmer with a huge extensive farm and some impoverished farmer with absolutely nothing, not even a patch to bury his body in….”6 As the people of Athens prepare to donate their property to the new communal fund, Aristophanes introduces a character called simply “Mean Man” (sometimes translated as “Selfish Man”), who gives nothing but still expects his share of the redistributed wealth, the so-called free rider problem. Today, as in ancient Greece, the fear of moochers and shirkers who refuse to do their “fair share” continues to undermine attempts to do things more communally. The cynical idea that “one bad apple spoils the barrel” goes back thousands of years. Doubters can mount a stiff resistance, but in every generation from Aristophanes on down, the dreamers persist.

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abortion, 94, 95, 152, 213 Abundance (Diamandis), 14 academia, academic studies, 37, 69–70 blue sky thinking and, 16 farming taught alongside, 121–22, 126–27 gender pay gap in, 20–21 valued above manual labor, 118, 121 Acts 2, 142, 154 Acts 4, 142 adoption, 221, 222–23, 224 Agriculture Department, US, 71 Albigensians, 142, 143 alloparents, alloparenting, 30, 181, 221, 222, 229 among nonhuman primates, 182–83 nuclear-family households as deterrent to, 185, 218, 226–27 state-funded, 213 All the Single Ladies (Traister), 197 Amazon, Indigenous tribes of, 186 Amazon (company), 67 Amazons (Greek mythology), 2, 26, 233 American Revolution, 144 Amish America website, 154 Anabaptists, 144, 153–54, 254 anarchists, anarchism, 8, 150–52 private property and, 140, 145 see also Kropotkin, Peter; Proudhon, Pierre-Joseph Anarchy, State, and Utopia (Nozick), 149 Ancient Society (Morgan), 152 Andover Theological Seminary, 80 Animal Farm (Orwell), 243–44 Anna Karenina (Tolstoy), 201 Another Community, 162 Apartment List website, 51 Apologia per Galileo (Apology for Galileo) (Campanella), 7 Appel d’une femme au peuple sur l’affranchissement de la femme (Appeal of a Woman to the People on the Enfranchisement of Women) (Démar), 208–9 Apple, Think Different slogan of, 15 Aristophanes, 11, 204 Arnold, Brother, 154–55 Arthur, Chester, 192 artificial intelligence (AI), 14 artificial life, 16 Asexual Visibility and Education Network (AVEN), 224 Association for Library Service to Children, Newbery Medal of, 244 Atarashiki-mura community, 162 Athens, ancient: monogamy in, 189, 202 Peloponnesian War defeat of, 4, 76 property owners in, 139–40 wealth inheritance in, 188–89 see also Greece, ancient BabyCenter website, 18 Babyjahr (baby year), 95 Baden-Württemberg, Campus Galli in, 36–37 banks, 57, 147–48 Bastani, Aaron, 14 Baugruppen (building groups), 56–57, 62 Bebel, August, 91, 210, 211, 246 nuclear family rejected by, 211–12 as proponent of gay rights, 211, 216 Social Democratic Party founded by, 210 women as viewed by, 210–11 Becker, Gary S., 188 Beguines, beguinages, 32, 38–39 castigated as heretics, 39, 254 modern, 57 women’s autonomy in, 38 Belgrade, University of, 47 Benedictine monasteries, 35, 36 Benedict of Nursia, Saint, 35 Berlin, cohousing projects in, 56 Berlin Senate Department for Urban Development, 57 Bernard, George W., 36 Bernard, Zoë, 50 Bertelsmann Foundation, 73 besprizornye, bezprizorniki (unattended ones), 114–15 Betzig, Laura, 190 Bezos, Jeff, 67 Bible, 143 see also New Testament; Old Testament Bible communism, 141–42, 153–57, 166 bihon lifestyle, 216 birth control, 152, 186, 215 birth rates, decline of, 75, 152, 216, 236 BirthStrike, BirthStrikers, 25, 257 Bjerre, Britta, 54–55 Blair, Eric (George Orwell), 243–44 Bloch, Ernst, 238 militant optimism and, 234–35, 240 Blount, Elizabeth, 190 blue sky thinking, 15–17, 24, 108, 239 see also dreamers, dreaming; hope, hopefulness; imagination bofællesskab (Danish communal housing projects), 53–57 Bogdanov, Alexander, 9 Bogomils, Bogomil sect, 142–44, 253 celibacy practiced by, 142, 205, 258 women’s equality in, 142, 154 Bolsheviks, 46, 93–94, 179 Boo, Katherine, 177–78 Book of the City of Ladies, The (Pizan), 38 Boomers, home ownership among, 51 Bowles, Samuel, 105 Boyd, Hal, 178 Boyd, Robert, 195 Boym, Svetlana, 47 Braff, Danielle, 220 Brancolini, Fabio, 129 Braun, Lily, 91–92 Brave New World (Huxley), 241–44, 245, 250 Bregman, Rutger, 14, 260 British Palestine, kibbutzim in, 86 Brooks, David, 177–78 Bruderhof colonies, 156–57 Brunswick, Maine, Two Echo Cohousing in, 52–53, 53 Bucur, Maria, 216 Buddha, 35, 167 Buddhists, Buddhism, 35, 141, 162 celibacy practiced by, 204, 258 Bulgaria: public education in, 118–19 “Unity in Diversity” project in, 130 see also Bogomils, Bogomil sect Bulgarian Women’s Committee, 96 Bureau of Labor Statistics, US, 106 Burkart, Judith M., 180–81 Burkina Faso, polygamy in, 187 California, three-parent adoption in, 224 California, University of: at Davis, 180 at Santa Cruz, 29, 200 Callenbach, Ernest, 9, 12 Cambridge University Center for Climate Repair, 16 Campanella, Tommaso, 6–7, 7, 112–13, 130, 132 Campus Galli, 36–37 Canada: Hutterite communities in, 154 patrilineal naming conventions imposed on Indigenous peoples in, 19–20 Canadian Cohousing Network, 66 Canterbury College, 37 capitalist realism, 240 capitalists, capitalism, 167, 214, 246 condition of women’s lives under, 10 early industrial, 8–10 hereditary transfer of wealth in, 29–30, 33–34, 144–49, 168, 188–90, 207–8 nuclear family structure and, 247–49 private property and, 145 public schools and, 105–8 wealth accumulation as prime concern of, 141, 145–46, 167 Carolingian monasteries, 36–37 Çatalhöyük, 32–33, 34 Cathars: Catholic Church and, 143, 253–54, 258 celibacy practiced by, 205, 253–54 women considered equals by, 142–44, 154 Catherine of Aragon, 190 Catholic Inquisition, 13 Catholics, Catholic Church, 4, 37 Albigensian Crusade of, 143 Beguines castigated as heretics by, 39, 254 Cathars despised by, 143, 253–54, 258 celibacy practiced by priests and nuns in, 205, 258 divorce prohibited by, 190 godparents and, 222 Hutterites persecuted by, 154 monogamy enforced by, 190, 218 tithes collected by, 143 vast land holdings of, 143 celibates, celibacy, 205, 219 of Bogomils, 142, 205 of Cathars, 205, 253–54 as challenge to monogamy, 204–5 in monastic communities, 32, 35, 205 of Shakers, 154–55, 205 cenobites, cenobitic monasticism, 35–36, 38–39, 141 celibacy practiced by, 32, 35, 205 property held in common by, 35, 141 Centers for Disease Control, 74, 176 “Century of Women,” 216 Ceresco (Wisconsin Phalanx), 42 Chana, Ziona, thirty-nine wives and ninety-four children of, 187 Chernyshevsky, Nikolai, 8 childcare, 21, 262 as commodity vs. public good, 100 nonparental, 74 state-supported, 10, 72–73, 92–95, 96–101 universal, 75, 79, 99, 237 worldwide disparity in access to, 96 childcare, communal, 43, 75, 76, 80, 101, 163, 178, 228 benefit to mothers of, 21, 88, 91, 98 benefit to parents of, 10, 21, 75–76, 90 developmental benefit to children of, 86, 90–91, 97–99, 237 on kibbutzim, 87–88, 89–90 childcare, in nuclear families, 73–74, 100, 256 Covid-19 pandemic and, 218, 257 by unpaid mothers, 10, 20–21, 25, 31, 56, 59, 68, 73, 77, 94, 128, 160 child labor, 79 child-rearing, 14, 25, 177–78, 180, 217–18 alloparenting in, see alloparents, alloparenting disparity in access to, 96 multi-parenting in, 223–26 platonic parenting in, 223 as public service, 76 public support for, 10, 72 women’s careers in conflict with, 21, 70–75 child-rearing, collective, 17, 24, 221, 237, 258 alloparenting in, see alloparents, alloparenting children’s long-term development benefited by, 90–91, 97–99 in cohousing, 52–53, 60 as essential for women’s incorporation in the labor force, 91 in Godin’s Familistery, 43 in kibbutzim, 86–91 Kollontai’s vision for, 92–95 Marx and Engels on, 79–80 in Oneida community, 81–85, 95 state-supported, 93–95 child-rearing, in nuclear families: diminishing multigenerational support in, 74, 177 financial cost of, 71–76 by unpaid mothers, 10, 20–21, 25, 31, 56, 59, 73–74, 78, 94 children: carbon footprint of, 228 collective rearing as beneficial to, 86, 90–91, 97–99, 237 with DNA of three parents, 223 early developmental needs of, 74 early immunity as beneficial to, 98 fathers’ surnames taken by, 18 as historically owned and controlled by men, 22, 137, 249 in polyamorous families, 224–25 as public goods, 76 “Children Should Have One Hundred Parents” (Graae), 54 chimpanzees, 180, 182–83 China, 49, 162 alloparental relationships in, 222 polygyny outlawed in, 190 Chomsky, Noam, 250 Christians, Christianity, 167 “Bible communism” and, 141–42, 153–57 communal sects of, 35–36, 153–57 godparents and, 222 monastic tradition in, see monastics, monasticism nuclear family and, 218–19 “Perfectionism” doctrine of, 80, 87 Churchill, Winston, 86 Church of England, 190 Church of Jesus Christ of Latter-day Saints (Mormons), plural marriage practiced among, 191–92 Cigna US Loneliness Index, 31 Cistercians, 35 Cities of Ladies (Simons), 38 Città del Sole, La (The City of the Sun) (Campanella), 6, 112–13 civil rights movement, US, 9 Cleveland, Grover, 192–93 climate crisis, 13, 127, 257 Coalition for Radical Life Extension, 16 cohousing, 52–57, 59, 65–66, 250–51 all-female, 57–58 architecture and design of, 59–60 children raised in, 52–53, 60; see also child-rearing, collective conflict resolution in, 64 conflicts in, 63–67 division of housework in, 59–60, 167 economic advantages of, 59, 61–62, 67 environmental benefits of, 62, 67, 167 loneliness and isolation mitigated in, 63, 67 for seniors, 57–58, 71 Cohousing Association of America (CohoUS), 66 Cold War, 3, 9, 86, 123, 231 Coldwell, Will, 50 Colgate University, 47 co-living, 49–52, 250–51 colleges and universities: communal living at, 29, 66 as historically male spaces, 38 Colombia: civil war in, 58 matriarchal ecovillage in, 57–58 Common (company), 50 communal living, 17, 25, 136 co-living, 49–52, 250–51 on college campuses, 29 economic advantages of, 31, 59, 61–62, 67 environmental advantages of, 31, 32 shared responsibilities in, 32 social connections in, 31 see also cohousing; kibbutzniks, kibbutzim “commune,” as pejorative term, 161 #communelife, 251 communism, communists, 8, 145, 150–51 anarchism vs., 151–52 1898 collapse of, 235 “Communist Confession of Faith” (Engels), 79 Communist Manifesto, The (Marx and Engels), 79–80, 107, 167, 209, 245–46 communities, 14, 17, 32, 37, 74 agricultural, 153 intentional, see intentional communities Community Playthings, 157 compadres (co-parents), 222 compersion, 221 Condition of the Working Class in England, The (Engels), 79 Congress, US, 123, 158–59, 192 Conly, Sarah, 77 Connelly, Rachel, 99 Conquest of Bread, The (Kropotkin), 9 Constitution, US, 2 contraception, 152, 186, 215 convents, 32, 38–39 Cooper, Davina, 237, 240–41 cooperation, 24, 68, 100, 105, 112, 114, 126–27, 202, 207 competition valued above, 121–22, 126 in conflict resolution, 64 as innate human tendency, 9 as learned trait, 65 Copenhagen, University of, Royal Academy of Art and Architecture at, 58 Copernicus, 6 Corinthians, First Epistle to, 205 corporations, blue sky thinking and, 15–16 Council of Vienne (1311), 39 COVID-19 pandemic, 13, 67, 128, 155 homeownership and, 51 isolation and loneliness exacerbated by, 31, 218 parents of young children and, 257 rise of domestic violence during, 175–76, 195 Cowden, Jonathan, 194 crime: income inequality and, 196 violent, 175–76, 195–96 see also domestic violence Cristina (Ghodsee’s grandmother), 171–72, 173, 175, 225 Cutas, Daniela, 223–24, 225 Cybele (fertility goddess), 204 Dakota people, 191 Dalai Lama, 141 Davis, Wade, 15 Dawn of Everything, The (Graeber and Wengrow), 235 Dead Sea Scrolls, 141 debt, financial, 30–31, 106–7, 129, 147–48, 256 Defense Department, US, “death gratuity” of, 76 De Leon, Daniel, 212, 215, 246 Démar, Claire, 208–9 Denmark, cohousing in, 53–54, 60 De revolutionibus orbium coelestium libri vi (Six Books Concerning the Revolutions of the Heavenly Orbs) (Copernicus), 6 Diamandis, Peter, 14 “Dictatorships & Double Standards” (Kirkpatrick), 247–48 Dishotsky, Jon, 50 Dispossessed, The (Le Guin), 9 divine right of kings, 7, 144 divorce, 160, 215, 222–23, 236, 250, 262 in ancient Athens, 188–89 no-fault, 24 in France, 18, 208–9 prohibited in Bible, 190 in Soviet Union, 94–95, 213, 215 domestic relations, see private lives, private sphere domestic violence, 173–76, 195 hidden in single-family homes, 176 rise in, during pandemic, 175–76, 195 US levels of, 176 Dominican order, 35–36 domus (nuclear family), 34 dreamers, dreaming, 11–12, 26, 255, 262 see also blue sky thinking; imagination Duolingo, 129 Durango, Colo., cohousing in, 60 Durrett, Charles, 58 dwelling, see communal living; homes, single-family; housing Dyson, Freeman, 23 dystopia, dystopian fiction, 124–25, 231 capitalist realism mindset in, 240 change as portrayed in, 245–47, 249–54 destruction of traditional family as portrayed in, 241–45 fear deployed in, 26, 240–47, 250, 260–61 taught to children, 244–45, 262 in US high school curricula, 241, 243, 262 as warning against totalitarianism, 243 Dzerzhinsky Commune, 117 Eastern Europe: collapse of socialism in, 64, 196 state-funded childcare in, 95–96 East Germany: state-supported childcare in, 99–100 state-supported maternity leave in, 95–96 economic inequality, 179, 188, 195 homicide rates and, 196 nuclear family and, 196–97 Ecotopia (Callenbach), 9, 12 Ecovilla Gaia, 160 ecovillages 57–58, 160–61, 163, 168, 221, 252, 254, 259 ectogenesis, 25 Edinburgh, University of, 120 Edmunds Anti-Polygamy Act (US; 1882), 192, 193 education: adult, 129–33, 259 higher, see higher education public, see public education Education for Self-Reliance (Nyerere), 121 Education with Production (EWP), 122 edX courses, 129 Einstein, Albert, 27–28, 109 elder care, public support for, 10 Emile (Rousseau), 108 Encyclopaedia Britannica, 149 Enfantin, Barthélemy Prosper, 207–8, 209, 254 Engels, Friedrich, 78–80, 91, 151, 209, 212, 245–46, 251, 253 as advocate for universal child-care and education, 79, 85 as advocate for women’s rights, 152–53 Familistery criticized by, 45 Fourier’s influence on, 40, 251 England: same-sex marriage in, 216 see also United Kingdom Enquiry Concerning Political Justice and Its Influence on Morals and Happiness (Godwin), 146, 206–7 environmental utopias, 9 Epistle of James, 35 Equal Rights Amendment, 2 Essenes, 141, 253 Europe, see Eastern Europe; Western Europe Expatriation Act (US; 1907), 19 Fair Housing Act, US, 65 Families First Coronavirus Response Act (US; 2020), 220 Familistery, 42–46, 45, 47, 253 family, non-traditional, 14 blended, 222 chosen, 218–23 polyamorous, 224–25 redefining and expanding of, 25, 180, 226–29 family, nuclear, 54, 169, 175–80, 197–98, 219, 226, 246 as adapted to protect the wealthy, 196–97, 249 capitalist defenders of, 247–49 dystopian fears of destruction of, 241–45 governments’ vested interest in upholding, 255–56 monogamy in, 219, 255 myth of inevitability of, 186, 236 parenting in, see childcare, in nuclear families; child-rearing, in nuclear families persistent ideal of, 177–78, 193, 201–2, 217, 236 see also homes, single-family; marriage, traditional; monogamy, monogamous societies family abolitionism, 217 famulus (servant or slave), 34 fear: of being alone and unloved, 240–41 of change, 15, 236–37, 250, 260 dystopian, 26, 240–47, 250, 260–61 of failure, 239 hope vs., 240 of non-monogamy, 194 of violence, 201 weaponized to benefit status quo, 16–17, 241 fearmongering, 250, 260 by organized religious denominations, 247 FedCon Star Trek convention, 234 Federal Employees Family Friendly Leave Act (US; 1994), 220 femininity, stereotypes about, 25 feminism, word coined by Fourier, 40 feminists, cohousing promoted by, 54, 67 Fern, Jessica, 178 fertility rates, decline in, 73, 227 Festival Filosofia (Festival of Philosophy), 129–30, 130 feudalism, 7 financial crisis (2008), 51, 162 Finkel, Eli, 25 Firestone, Shulamith, 217, 241 First Amendment, 192 1st Indigenous Ecovillage, 160 Fisher, Mark, 240, 246 FitzRoy, Henry, 190 501(d) organizations, 158–60 Folbre, Nancy, 76 Fortunato, Laura, 189 Foundation for Intentional Community, 66 Fourier, Charles, 14, 24, 253 Engels and Marx influenced by, 40, 251 passionate attraction theory of, 8 secular phalanstery envisioned by, 40–42, 41 France, 188 Albigensians in 142, 143 Cathars in, see Cathars divorce outlawed in, 208 state-supported childcare in, 97, 100 utopian socialists in, 10 Franciscans, 35–36 freecycling, 164, 168 free-market societies, 150, 247 see also capitalists, capitalism free rider problem, 11 free stores, 168 French Civil Code, 208 French Revolution, 7–8, 40, 144–45, 146, 208 Friedman, Milton, 106–7 Fully Automated Luxury Communism (Bastani), 14 future, 12, 76, 132–33, 234–38, 258 commitment to, 26 dystopian visions of, see dystopia, dystopian fiction fear and, 152, 241, 260 hope and, 238–39, 260 imagining, 14, 253, 260 militant optimism and, 26, 234–38, 240, 258, 262 positive vision of, 27–28, 233, 260 as unknowable and uncertain, 250, 256 utopian visions of, see utopia, utopian ideas Galeano, Eduardo, 238 Galileo Galilei, 6–7 Gandhi, Mohandas K.

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Naked Economics: Undressing the Dismal Science (Fully Revised and Updated)
by Charles Wheelan
Published 18 Apr 2010

But that can actually be part of the problem; it is easy to be a “free rider” and let someone else, or some other organization, do the work. Last year, how much time and money did you contribute to preserving endangered species? Tour and safari operators, who do make a lot of money by bringing wealthy tourists to see rare wildlife, face a similar “free rider” problem. If one tour company invests heavily in conservation, other tour companies that have made no such investment still enjoy all the benefits of the rhinos that have been saved. So the firm that spends money on conservation actually suffers a cost disadvantage in the market. Their tours will have to be more expensive (or they will have to accept a lower profit margin) in order to recoup their conservation investment.

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They will not proactively seek out criminals who might someday break into your house; they will not track Mexican drug kingpins or stop felons from entering the country or solve other crimes so that the perpetrator does not eventually attack you. All of these things would make you and your property safer in the long run, but they have inherent free rider problems. If I pay for this kind of security, everyone else in the country benefits at no cost. Everywhere in the world, most kinds of law enforcement are undertaken by government. Parks and open space. Chicago’s lakefront is the city’s greatest asset. For some thirty miles along Lake Michigan, there are parks and beaches owned by the city and protected from private development.

pages: 168 words: 46,194

Why Nudge?: The Politics of Libertarian Paternalism
by Cass R. Sunstein
Published 25 Mar 2014

See SARAH CONLY, AGAINST AUTONOMY (2012); PATERNALISM: THEORY AND PRACTICE (Christian Coons and Michael Weber eds., 2013). 5. To be sure, the individual mandate can be, and has been, powerfully defended on nonpaternalistic grounds; above all, it should be understood as an effort to overcome a free-rider problem that exists when people do not obtain health insurance (but are nonetheless subsidized in the event that they need medical help). 6. MILL, supra note 2. 7. Id. 8. Id. 9. An authoritative discussion is DANIEL KAHNEMAN, THINKING, FAST AND SLOW (2011). On behavioral economics and public policy, see CASS R.

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The Goodness Paradox: The Strange Relationship Between Virtue and Violence in Human Evolution
by Richard Wrangham
Published 29 Jan 2019

Free-riders would be those who avoid joining raids, so that for them the benefit of the extra resources would be free. If everyone became a free-rider, there would be no war. Lopez 2017 describes this problem and notes that it applies more to offensive than defensive war. To explain how this free-rider problem does not stop the practice of simple war, scholars have sometimes invoked uniquely human characteristics such as the capacities for gossip or culture that could reward or punish men appropriately for fighting. Rewards can indeed be important. Warriors practicing simple warfare can be publicly celebrated or given increased access to women or goods.

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In societies with a higher death rate in simple war, warriors were found to have access to a wider set of potential rewards (Glowacki and Wrangham 2013). Physical whipping of cowards has also been recorded among East African pastoralists, suggesting that punishment, too, can encourage participation in simple warfare (Mathew and Boyd 2011). Animals show, however, that reward and punishment are not needed to solve the free-rider problem. Lethal intergroup aggression occurs among chimpanzees and wolves without such encouragements. Among chimpanzees, for example, no rewards or punishments have been found in relation to participation in intergroup aggression (Wrangham and Glowacki 2012). Certain males simply take the initiative more than others, leading the way toward enemy territories.

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Crisis Economics: A Crash Course in the Future of Finance
by Nouriel Roubini and Stephen Mihm
Published 10 May 2010

Taking that power away would be another way of opening up competition. An even more comprehensive reform would be to force the ratings agencies to return to their original business model, in which investors in debt—not the issuers of it—pay for the ratings. Unfortunately, this is easier said than done. One reason is the “free rider problem”: once a set of investors pays for a rating and makes a decision based on it, other investors can figure out the rating and make their own decision free of charge. A solution would be to mandate that all institutional investors pay into a common pool that would be administered by regulators.

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in Bretton Woods system carry trade in decline of depreciation of future of purchasing power of as reserve currency swap lines and value of double agency conflict Dubai Dubai Ports World Dubai World dynamic provisioning Eastern Europe see also specific countries economic crises, see financial crises economic growth in China deflation and future of Great Moderation and high economic history economics, as science Economic Stimulus Act (2008) Economist Ecuador Edward III, king of England Efficient Market Hypothesis emerging markets (economies) current account deficits in current account surpluses in financial crises in globalization and Great Moderation and recovery in resilience in savings in U.S. compared with U.S. debt purchased by see also specific countries employment full globalization and Keynes’s views on monetarist view of of regulators endowment funds endowment managers England central bank of, see Bank of England entrepreneurship equities equity of banks hedge funds and home leverage and equity firms equity funds, private equity tranche Estonia Europe emerging future of lack of stimulus policy in Latin American debt crisis and panics in regulation in securitized products purchased by shared vulnerabilities in see also specific countries European Central Bank European Economic Recovery Plan European Monetary Union European Union (EU) euros Eurozone exchange rates fixed flexible exogenous negative supply-side shock exports dependence on Extraordinary Popular Delusions and the Madness of Crowds (Mackay) Fama, Eugene Fannie Mae government takeover of securitization and Federal Deposit Insurance Corporation (FDIC) receivership process of reform and Federal Home Loan Bank Federal Housing Administration (FHA) Federal Open Market Committee Federal Reserve bank borrowing and Bear Stearns bailout and bubbles banished by crisis control failure of current account deficit and deposit insurance limits raised by discount window of exit strategy of Great Depression and Greenspan put and independence of as investor of last resort Lehman Brothers and as lender of last resort lending facilities created by lines of credit from liquidity trap and long-term loans to banks provided by LTCM bailout and open market operations of origins of quantitative easing and reform and sale of Bear Stearns and swap lines of threat of new bubbles and Volcker’s policies in Federal Reserve Board Federal Savings and Loan Insurance Corporation Fed Funds rate feedback theory Financial Accounting Standards Board (FASB) financial crises first global (1825) future in historical perspective as norm origins of reduced to one failure response to see also crisis economics; Great Depression; panics, financial; specific topics financial crisis (2008) assumptions and as “black swan” event bubble in Cheney’s assessment of containment of decoupling from disbelief and denial of signs of global spread of Great Depression compared with greed and holistic and eclectic approach to lingering questions about Obama administration’s response to pandemics compared with previous crises compared with Roubini’s predictions for structural origins of see also Great Recession Financial Industry Regulatory Authority financial innovation failure of government to keep pace with Greenspan’s views on regulation and Financial Instability Hypothesis financial institutions, debt of financial markets Financial Services Authority (FSA) Financial Services Modernization Act (1999) Financial Services Oversight Council Financial Stability Board Financial Times Finland firms capital spending by in emerging Europe failure of shareholders of see also too-big-to-fail (TBTF) firms; specific firms fiscal deficits recovery and fiscal policy aftermath of capital injections and conventional cross-border implications of Federal Reserve’s infringing on guarantees as Keynes’s views on monetary policy blurred with monetary policy compared with stimulus spending as, see stimulus spending see also taxes Fisher, Irving Fitch Ratings Flexible Credit Lines (FCLs) flexicurity Fortis France Franco-Prussian War francs, Swiss Frankel, Jeffrey fraud Freddie Mac government takeover of securitization and free rider problem Friedman, Milton FSA (Financial Services Authority) full employment G-7 countries G-10 countries G-20 countries gambling for redemption Gaussian copula GDP, see gross domestic product GE Capital Geithner, Timothy General Motors General Theory of Employment, Interest and Money, The (Keynes) Germany banks in easy money from IMF and savings in surpluses in Giscard d’Estaing, Valéry Glass-Steagall Act (1933) global economy dangers to future of imbalances in Roubini’s predictions for see also specific topics global governance globalization future of “global savings glut” hypothesis global super-regulator GMAC gold Goldman Sachs as bank holding company dismembering of hedge funds of revolving-door appointments and gold standard goods and services aggregate demand and government Austrian School’s view of bonds of, see bonds, government crises caused by crisis role of debt and demand created by failure to keep pace with financial innovation by Federal Reserve’s infringing on Fisher’s view of globalization and guarantees of insurance partnership formed with ailing banks by intervention of Keynesian view of monetarist view of reform of compensation and safety net of stimulus spending by, see stimulus spending toxic bank assets purchased by see also fiscal policy; local government; state government; specific organizations Government National Mortgage Association (Ginnie Mae) Gramlich, Edward Gramm, Phil Gramm-Leach-Bliley Act (1999) Grant, James Grant Street National Bank Great Britain banks in empire of panics in reserve currency of Great Contraction Great Depression Austrian School’s view of deflation and deposit insurance in economic collapse in financial crisis (2008) compared with Fisher’s views on Hoover and Keynes’s views on monetarist view of reform and risk of repeat of Great Instability Great Moderation Great Recession see also specific topics Great Synchronization Greece greed Greenspan, Alan Greenspan put gross domestic product (GDP) consumption and finance’s “contribution” to recovery and guarantees, government see also deposit insurance Harvard University Hatoyama, Yukio Hausmann, Ricardo Hayek, Friedrich health care hedge borrowers hedge funds compensation at as disease vectors in foreign countries leverage and mortgage-backed securities and reforms and regulation and supervision of in shadow banking system Hitler, Adolf Holland tulip bubble in home equity loans home ownership, promotion of Home Ownership and Equity Protection Act (1994) homes, see housing Hong Kong Hoover, Herbert households debt of in emerging Europe in Japan House of Representatives, U.S.

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The Better Angels of Our Nature: Why Violence Has Declined
by Steven Pinker
Published 24 Sep 2012

The men do not live in all-boy treehouses in which no girls are allowed; they depend on women for sex, children, child-rearing, and the gathering or preparation of most of their food. Families that kill their daughters want there to be women around. They just want someone else to raise them. Female infanticide is a kind of social parasitism, a free rider problem, a genealogical tragedy of the commons.129 Free rider problems arise when no one owns a common resource, in this case, the pool of potential brides. In a free market in marriages in which parents wielded property rights, sons and daughters would be fungible, and neither sex would be favored across the board. If you really needed a fierce warrior or brawny field hand around the house, it shouldn’t matter whether you raised a son for the job or raised a daughter who would bring you a son-in-law.

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René Descartes also changed addresses frequently, bouncing around Holland and Sweden whenever things got too hot. The economist Edward Glaeser has credited the rise of cities with the emergence of liberal democracy.146 Oppressive autocrats can remain in power even when their citizens despise them because of a conundrum that economists call the social dilemma or free-rider problem. In a dictatorship, the autocrat and his henchmen have a strong incentive to stay in power, but no individual citizen has an incentive to depose him, because the rebel would assume all the risks of the dictator’s reprisals while the benefits of democracy would flow diffusely to everyone in the country.

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Problems with the theory: Hawkes, 1981; Hrdy, 1999. 127. Moderate support from wills: Hrdy, 1999. 128. Rarity of son-killing: Exceptions are the Shensi of China: Milner, 2000, p. 238; the Rendille of Kenya: Williamson, 1978, note 33; poor urban workers in 17th-century Parma: Hynes, in press. 129. Female infanticide as a free rider problem: Gottschall, 2008. 130. Female infanticide as a vicious circle: Chagnon, 1997; Gottschall, 2008. 131. Female infanticide and inheritance: Hawkes, 1981; Sen, 1990. 132. Daughter = water: Quoted in Milner, 2000, p. 130. 133. India and China today; Milner, 2000, pp. 236–45. 134. Gynecide today, trouble tomorrow: Hudson & den Boer, 2002. 135.

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Without Copyrights: Piracy, Publishing, and the Public Domain (Modernist Literature and Culture)
by Robert Spoo
Published 1 Aug 2013

Intellectual property laws can be viewed as attempts to prevent market failure by placing an invisible legal fence around the intrinsically open and unbounded public good of authorship.75 To the extent that nineteenth-century authors may be said to have produced public goods, unauthorized reprinting of their writings may be viewed as a vast free rider problem (or an easy rider problem, since reprinting involved printing costs and other overhead). But if reprinters free rode so heavily on foreign authors, why did those authors continue to write and publish? In part because the copyright laws of their own countries solved free rider problems for their publishing markets, allowing them to capture the domestic benefits of their labors. Although free or easy riding was rampant in the United States, foreign authors could live with those losses.

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After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead
by Alan S. Blinder
Published 24 Jan 2013

The third is to scare the agencies with legal liability for mistakes.* INFORMATION AND FREE-RIDING In the Information Age, information is one of the major factors of production, surely more important than, say, land. Many people earn their living producing, processing, and analyzing information. Yet a fundamental free-rider problem besets the markets for information—it’s so easy to get that it’s hard to own. Especially now, with electronic communications cheap and ubiquitous, it is hard—often impossible—to keep information in the corral. Security ratings are just one example: Free-riding makes it next to impossible for asset managers to pay for ratings.

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Bits of information, after all, fly around the globe at the speed of electricity, showing no respect for borders. It’s easier to steal code than to steal coal. When the producers of information and other sorts of content (e.g., rating agencies, computer programmers, musicians, etc.) can’t collect fees from the users of that information, market function is impaired. Different markets cope with the free-rider problem in different ways—with patents, legally protected royalty rights, encryption, and so on. But there is no foolproof solution. BRINGING MORTGAGE FINANCE BACK TO LIFE And then there was the 800-pound gorilla: The entire U.S. mortgage finance system collapsed into a pile of rubble during the crisis.

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The New Division of Labor: How Computers Are Creating the Next Job Market
by Frank Levy and Richard J. Murnane
Published 11 Apr 2004

In the case of the Xerox technicians, free riders were not an issue. Eating breakfast together and telling stories are fun, and a technician who was silent and only took notes would soon lose his place at the table. But if contributing to knowledge involves more work—say, writing up a case for a workplace database—the free rider problem is potentially more serious. Earlier, we discussed the possibility that persons who solve new problems could document their solutions so that others could learn from them. Under what circumstances does documentation of solutions work? At the outset, the success of documentation hinges on the ability of text and pictures—the standard media—to convey the problem adequately.

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Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa
by Dambisa Moyo
Published 17 Mar 2009

For instance, for some countries the pooled cost of borrowing would most likely be lower than that for an individual country alone – a weighted probability of default would be lower than for an individual country’s bond issue. And much like the European Union (or any union of countries, for that matter) ‘higher-quality’ countries would be given the incentive to participate in such a structure to garner positive externalities from the neighbours’ growth as well. Pooling risk invariably introduces a free-rider problem; that is, the risk that one or more countries take relatively more cash out of the pot than they deserve (or add more risk to the pot than is desirable – although in this case the group of countries could simply choose to exclude the country, thereby forcing it to the markets on its own, to earn its stripes).

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The Third Pillar: How Markets and the State Leave the Community Behind
by Raghuram Rajan
Published 26 Feb 2019

This social distancing or alienation once again diminishes the strength of relationships and the value of community. Members could try to preserve a sense of community as it grows larger and more anonymous, urging everyone to take into account community benefits in deciding whether to transact locally or in the larger marketplace. They then run into the free-rider problem. We may all benefit from having a local bookstore, where we can browse through books before buying, and meet for coffee or for book events. It may well be that the associated benefits of building community through purchases from the local bookstore outweigh the lower price from ordering more cheaply online.

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R., 287 American Medical Association, 137, 207 Amish, 8 amoral familism, 14 Antitrust Paradox, The (Bork), 202 antitrust regulators, 202 apathy, 113–15, 347 Apple, 178, 182–83, 383 Arab Spring, 330 aristocracy, 54–56, 72, 78, 87 Aristotle, 21, 39, 40, 48 Arthashastra, 31 Augustine, St., 39 authoritarianism, xvii, xviii, 97, 106, 108–9, 112, 139, 160, 244, 253, 257, 274 legitimacy-seeking, 253 automobiles, 152, 179–80, 261 automation, xii, xviii, 3, 18, 84, 179, 180, 143–44, 175, 178, 185–87, 284, 314, 324 Autor, David, 185 Bacon, Francis, 41 Bakunin, Mikhail, 91 Banfield, Edward, 12–14, 227 Bank of England, 68, 69 banks, 15–16, 72, 104, 178–79, 209, 219, 381, 385, 386 Global Financial Crisis and, 237–39, 358 inflation and, 366 regulation of, 358–60 Baosteel Group, 253 Barry, Ellen, 19–20 Basel Accords, 358, 360 Basix, 336, 337 “beggar thy neighbor” policies, 364 “beggar thyself” policies, 364 Bell, Daniel, 257 Beveridge, William, 155–56 Beveridge Report, 155–56, 318, 319, 321 Bible, 119 usury and, 31–32, 34, 48 Billington, Elizabeth, 193 Bismarck, Otto von, 112, 132 Black Death, 40, 41–42 BoBos (bourgeois bohemians), 218 Bohannan, Laura, 7–8 Boldrin, Michele, 382–83 Boleyn, Anne, 54 Book of Rates, 63 borders, 290, 351–54, 371 Bork, Robert, 202 Bowling Alone (Putnam), 334 Bretton Woods system, 160, 169 Brexit, 242 Britain, see England; United Kingdom Brooks, David, 218, 227 Bryan, William Jennings, 100 bubonic plague (Black Death), 40, 41–42 Burnham, Daniel, xxviii Bush, George W., 158 Calvin, John, 47–49, 82 Calvinism, 47–49, 55, 82, 86, 218 Canada, 294, 298, 342, 368 cannons, 42–44, 51 capitalism, 145, 147 Calvinism and, 47–48 in China, 252–55 crony, 99, 106, 108–9, 257–58 Marxist view of, 88–90 Weber’s view of, 47 Capitalism for the People, A (Zingales), 200 caregivers, 319–20 Carlyle, Thomas, 83 cars, 152, 179–80, 261 Carter, Jimmy, 163, 165, 235 Catholic Church, 29, 42, 49–50, 57, 59, 66–67, 72 Councils of, 34 monasteries of, 54, 57, 72 Papal Revolution in, 38, 40 Reformation and, 40–41, 47, 49 reform in attitudes toward business and interest, 47–49 state and, 45–46 usury and, 34–42, 44–46, 49 wealth of, 44–45 Celler-Kefauver Act, 380 CEOs, 193–94, 198–99, 209 Chandragupta Maurya, 31 Charles I, King, 66 Chernow, Ron, 85 Chetty, Raj, xvi Chicago, Ill., xxii, xxiii, 308, 312, 340–41 Pilsen community in, xxii–xxvi, 12, 298, 344, 381 Chicago Tribune, xxiii chickens, 354–55, 357 children, 222–31 meritocracy and, 224–25, 228 China, xxviii, 42, 97, 144, 145, 147, 185, 245, 246, 291, 342, 352 aging population in, 260, 292 anti-corruption campaign in, 261, 265 capitalism in, 252–55 change in, 258–64 Communist Party in, 144, 247–67 construction sector in, 275 crony competition in, 257–58 Deng in, 249–52, 265, 278 Global Financial Crisis and, 258, 259 growth of, 258, 368–69 households in, 255–56, 259–60, 263–64 imports from, 185 income inequality in, 260 India compared with, 247–48, 267, 269, 270, 275–76 infrastructure in, 259 internet and, 266, 350 liberalization in, 248–67, 276 Maoism in, 247, 248–50 medieval, 20–21 meritocracy in, 257, 265 one-child policy in, 260 in Opium Wars, 349–50 path not taken in, 249–52 populist nationalism in, 276–79 social credit system proposed in, 266 state, markets, and democracy in, 264–67 technology and, 261–62, 278 Tiananmen Square protests in, 250–51 United States and, 278 Xiushui Market in Beijing, 255 Church, see Catholic Church citizenship, 290, 295–99, 302 global, 369 civic nationalism, 297–99, 302 Civil Rights movement, 138, 157, 229, 230, 235 Clay, Lucius, 150 climate change, xii, 245, 284, 365, 396–97 Clinton, Hillary, 235 Coleman, James, 225 colleges and universities, 190–91, 220–21, 308–9, 340 credentials and, 233–34, 317 communications technology: community and, 330–35 see also Information and Communications Technology (ICT) revolution; internet communism, xvii, 91, 97, 145–47 in China, 144, 247–67 in France, 168 community(ies), xiii, xxvii, 1–22, 25, 243, 283, 285–87, 297, 303–4, 325, 392, 393, 394 alternatives and, 15–17 assets of, 339–41 in the balance, 107–40 benefits of, 327–29 common themes in revival of, 338 communications technology and, 330–35 competition between, 306–7, 329 conflict resolution in, 9–10 crime and drug abuse in, 343–44 dealing with failure in, 347–48 definition of, xiv downsides of, 329 dysfunctional, xiii, xix, 12–15, 173, 227, 325, 378 economic segregation in, 307–9 economic value of, 11 Elberfeld system in, 129–31, 320 engagement in, 344–45 feudal, see feudalism, feudal communities financing revival in, 346–47 Galena, 337–38, 339, 344 ICT revolution and, xviii–xx, 176, 184–88 importance of, xiv–xviii and importance of location, 219–21 and incentive to change, 18–19 Indore, 335–37, 339, 344 infrastructure and, 309–11 insular, costs of, 19–21 leadership in, 339, 344–45 local government, xiv, xv, xvi, 11–12, 286, 305, 311–13 localizing powers and public services in, 306–13 and loss of faith in markets, 115–19 market adjustments and, 388–91 outside choice and, 15, 18, 19 people as assets in, 342–43 physically proximate, 1–4, 327–30, 335–45, 395 Pilsen, xxii–xxvi, 12, 298, 344, 381 as political training ground, xvii positive roles of, 4–10 regulations and, 285, 304, 306–7, 341, 357 reinvigorating, xx–xxi, 327–48, 352, 395 relief efforts from, 131–33 safety net and, 127–38, 318–25 schools and, 119–25, 225–28, 232–34, 313–18 separation of markets and state from, xiv–xv social relationships in, 7–8 sorting and, see residential sorting state and, 303–25, 345–46 tax incentives and, 345 technology and, 119, 335, 344–45 trade and, xviii–xx, 335, 352 training and socializing of young in, 5–7 transactions in, 3, 8–9, 10–11 value of, 10–12 values in, and tolerance for markets, 390–92 varieties of, 2, 329–35 village, 4 virtual, 327, 329, 330 compass, 41–42, 43 competition, xxii, 52, 64, 71, 84–87, 89, 91, 105, 106, 108–10, 139, 145, 176, 207–8, 283, 374, 392, 393 between communities, 306–7, 329 curbs on, 138 enhancing, 379–86 European Union and, 208–9 monopolies and, see monopolies non-compete agreements, 205, 206, 387 patent protection and, 383 preservation of, in U.S., 98–105 property rights and, 286 regulation and, 165, 387–88 scaring away, 203–6 computers, 117, 175, 185, 186, 314 see also Information and Communications Technology revolution; internet Confessions (Augustine), 39 conflict resolution, 9–10 consensus politics, 153 construction, 275 Constitution, U.S., 71 constitutional patriotism, 298 constitutions, 285 Consumer Price Index (CPI), 189 copyhold tenancy, 36 copyright laws, 204–6 corporations, 173, 176, 194, 195, 206, 355–56, 373–74 CEOs of, 193–94, 198–99, 209 and change in attitudes toward profit and incomes, 195–201 European, 209 lobbying by, 378, 389 monopolies by, see monopolies new business creation, 201–7, 380–81 profit maximization and value maximization in, 374–79 social responsibility of, 378–79 corruption, 98–100, 109, 114, 138 in China, 261, 265 in India, 272 Cowen, Tyler, 161 Crecy, battle of, 42 crime, 343–44 Cristo Rey Catholic School, xxiv Cromwell, Oliver, 66 cronyism, 99, 106, 108–9, 113–15, 139, 176, 244, 274, 184, 352, 392 in China, 257–58 in India, 268, 269 data, as market power, 384–86 David, Paul, 161 debt contract, 29–31 see also loans de la Croix, David, 20 democracy(ies), xxvii, 79, 91, 97, 98, 118, 143, 160, 172, 218, 244, 319, 352, 357, 371, 380, 396 crony, 113–15 illiberal, 113 in India, 268–70, 272–74 markets and, 106, 110 public hearings and, 389–90 Democrats, 235–36, 240 Deng Xiaoping, 249–52, 265, 278 Depression, Great, see Great Depression Depression of 1893, 133, 134 developing countries, 245 Dewey, John, 124–25, 227 Dickens, Charles, 129 diversity, 128, 134, 148, 177, 284, 287, 289, 302, 357 benefits of, 290–95 costs of, 293–95 see also immigration, immigrants divorce, 235 Dodd–Frank Wall Street Reform and Consumer Protection Act, 204 Doepke, Matthias, 20 Douthat, Ross, 235 Dream Hoarders (Reeves), 224 drugs, drug companies, 183, 184, 204, 354, 362–63, 384 East India Company, 68, 69 Economist, 202 Edison, Thomas, 117 education and schools, xx, 6, 72, 83, 140, 158, 162, 221, 228–29, 283, 286, 290, 305, 308–9, 343 colleges and universities, see colleges and universities community and, 119–25, 225–28, 232–34, 313–18 credentials and, 233–34, 317, 393 decentralization in, 316 decline in school quality, 232–34 in France, 125–27, 317 GI Bill and, 156, 157 new tools and methods in, 314–15 paying for, 317–18 segregation and, 229–30 teachers, 102–3 technological progress and, 122–23 in U.S., 119–25, 127, 190–91, 233–34, 317 worker capabilities and, 313–18 Einstein, Albert, 384 Einsweiler, Frank, 337, 339 Elberfeld system, 129–31, 320 Ellikson, Robert, 9–10 emerging markets, 245, 271 see also China; India Engels, Frederick, 88, 90 Engerman, Stanley, 72, 96 England, 52, 59–60, 64–65, 67, 73, 132–33 agricultural laborer revolt in, 94–95 Chartist movement in, 95 Civil War in, 66, 70 Declaration of Rights in, 67–68, 71 emergence as constitutionally limited state, 52–74, 83 Glorious Revolution in, 67–71 Industrial Revolution in, see Industrial Revolution Parliament in, 57, 60–62, 65–70, 74, 77, 84, 105 Poor Law in, 19, 84 Stuarts in, 52, 58, 65–67, 73, 108 Tudors in, 51–54, 73 voting rights in, 92, 94–95 William and Mary in, 67 environment, 365, 371–72, 396 climate change, xii, 245, 284, 365, 396–97 Erhard, Ludwig, 154 Essay on the Principles of Population, An (Malthus), 83 ethnicity and race, xxi–xxii, 298, 397 residential sorting and, 229–31 see also African Americans; diversity; immigration, immigrants; minorities ethnic nationalism, 215–16 populist, 216–17; see also populist nationalism Europe, 52, 59, 74, 160, 167–68, 236, 368, 370 feudalism in, see feudalism, feudal communities immigration in, 144, 159, 167, 210, 241–43 inequalities in, 177 populist nationalism in, 241–43 regulators in, 359 safety nets in, 156 after World War II, 148–54 European Coal and Steel Community, 150 European Economic Community (EEC), 150 European Payment Services Directive, 385 European Payments Union, 150 European Union (EU), 168–73, 208–10, 310, 369, 370 Brexit and, 242 competition and, 208–9 creation of, 168 currency integration in, 169, 237 immigration crisis and, 242 loss of sovereignty in, 171–72 poultry farms in, 355, 356 Stability and Growth Pact in, 169, 170 factories, 18, 78, 88–89, 104, 185 fairness, 115–16 Fallows, Deborah, 344 Fallows, James, 344 families, 231, 235 familism, amoral, 14 Farmers’ Alliance, 23 fascism, xvii, 97, 138, 145, 153 Fault Lines (Rajan), xxvi Federal Reserve, 104, 163, 366 feudalism, feudal communities, xxvii, 19, 25, 35–36, 42, 51–52, 55, 64, 73, 74, 83, 84, 91, 92 and Church’s attack on usury, 34–40 commercial revolution and, 36–39 technology and, 41–42 financial crises: technological change and, 118, 119 of 2007–2008, see Global Financial Crisis of 2007–2008 in U.S., 87–88, 118 Food and Drug Administration, 387 Forastie, Jean, 153 Forbes 400, 192 Ford, Gerald, 235 Ford, Henry, 179–80 France, 59, 145, 168, 246, 298 in European Union, 169, 170 income in, 191, 192 in postwar period, 150, 152–54 Revolution in, 74, 94, 125–26 schooling in, 125–27, 317 free-rider problem, 17 Friedman, Milton, 139–40, 164, 195–201, 375, 377 Friedman, Rose, 139–40 Furstenberg, Carl, 209 G7 nations, 368 Galena, Ill., 337–38, 339, 344 gaming, 334 Gandhi, Indira, 269, 271 Gandhi, Mohandas K., 281, 298 Gao, Xiaohui, 201 Gaud, Malinil, 336, 339 GDP, 163, 164 General Agreement on Tariffs and Trade (GATT), 146, 150, 353 gentry, 54–58, 64–66, 71, 72 Gentzkow, Matt, 332–33 Germany, 73, 74, 162, 236, 238, 241 Elberfeld system of assistance in, 129–31, 320 in European Union, 169–71 income in, 191, 192 migrants and foreign workers in, 159, 242 Nazi, 112, 157, 380 in postwar period, 150, 153, 154 social insurance in, 132, 156 state and industry linked in, 111–12 Giersch, Herbert, 167 Giving Pledge, 396 Glaeser, Edward, 98, 137 Glass-Steagall Act, 104 Global Financial Crisis of 2007–2008, xiii, xxvi, xxviii, 88, 144, 199, 204, 213, 236–43, 353–54, 358, 370, 393 China and, 258, 259 global governance, 245–46, 367–70 globalization, 371–72 gold, 100, 101 Goldin, Claudia, 98 Goldstein, Amy, 186 Google, 201, 203, 350, 386 Gorbachev, Mikhail, 251 Gordon, Robert, 161 government, governance, xv, 107, 139, 394 centralization of, 51 deficits, 162–64, 324 federal, xiii–xiv, xvi; see also state global, 245–46, 367–70 local, xiv, xv, xvi, 11–12, 286, 305, 311–13; see also community promises made by, 145–73, 324–25 promotion of views in, 107 Grant, Ulysses S., 98, 337 Great Britain, see England; United Kingdom Great Depression, xxvii, 88, 119, 134–38, 139, 145–47, 151, 157, 210, 237, 364 safety nets in the U.S. before, 133–34 Great Recession, xiii, 238, 334 Great Society, 158 Greece, 145, 170, 237, 238, 359 Gregory VII, Pope, 38, 54 guilds, 58–62, 64, 81 gunpowder, 41–42 Gutenberg, Johannes, 46 Habermas, Jurgen, 298 Hampton, Keith, 331 handloom weavers, 18–19, 116, 188 Hanson, Gordon, 185 Harrington, James, 58 Hart, Oliver, 11 Harvard University, 98, 137, 197, 233, 242, 293, 362, 364, 371, 389 Hayek, Friedrich, 91, 164 health care, 156, 162–63, 318–19, 324 Affordable Care Act (Obamacare), 144, 214, 239–41 drugs, 183, 184, 204, 354, 362–63 training and wages in, 388 in U.K., 156 in U.S., 158, 203 Heckman, James, 6, 223, 225, 226 Hendren, Nathaniel, xvi Henry VII, King, 53–54 Henry VIII, King, 54, 57 Hicks, John, 99 Hillbilly Elegy (Vance), 300–301 Hochschild, Arlie Russell, 239–40 Holland, 65 housing, 237, 307–9 Hsieh, Chang-Tai, 220, 253, 258 Huang, Yasheng, 251 Hume, David, 63 Hurst, Erik, 333–34 Icahn, Carl, 197 ICT, see Information and Communications Technology revolution Idea of India, The (Khilnani), 298 Ignatieff, Michael, 299 immigration, immigrants, xvi, xviii, 121, 134, 137, 147, 148, 159–60, 173, 218, 219, 245, 284, 286, 289, 297, 302, 348 benefits of, 290–95 distressed communities and, 342 in Europe, 144, 159, 167, 210, 241–43 Harvard study on, 242, 293 Japan and, 292–93 Muslim, 241, 242 population aging and, 260, 284, 286, 292–93, 396 residential sorting and, 229–31 talent and, 290–91 in U.S., 137, 159–60, 292 inclusive civic nationalism, 297–99, 302 inclusive localism, xxii, 22, 285–87, 289–302, 327, 351, 394 income and wages, 90, 127, 152, 213, 388, 395, 396 dispersion across US cities, 220 of doctors, 388 Earned Income Tax Credit and, 345–46 economic segregation and, 307–9 effects of technology and trade on, 188–94 median wage, 189–91 occupational licensing and, 207 top one percent, 102, 191–94 universal basic income, 322–23 India, xxvi, xxviii, 19–20, 31, 113–15, 139, 144, 245, 246, 267–74, 287, 298, 317, 350, 391 affirmative action in, 300–302 bribery in, 312 China compared with, 247–48, 267, 269, 270, 275–76 corruption in, 272 cronyism in, 268, 269 decentralization in, 270, 272 democracy in, 268–70, 272–74 economic growth of villages in, 275 Finance Ministry in, 274 Indore, 335–37, 339, 344 land acquisition for public projects in, 275–76 liberalization in, 269–71, 273, 276 populism in, 272, 276–78 Rashtriya Swayamsevak Sangh in, xix, 277 socialism in, 267–69, 391 state, markets, and democracy in, 272–74 individualism, 194–96, 201, 284 Indore, 335–37, 339, 344 industrialization, 75, 88, 127, 275 Industrial Revolution(s), 16, 18, 26, 70, 74, 78, 84, 87, 91, 230 First, 116–17 Fourth, 117 handloom weavers and, 18–19, 116, 188 Second, 117–19, 122, 146, 147, 152, 153, 160–61 Third, 117 in U.S., 121 see also Information and Communications Technology (ICT) revolution inflation, 56–57, 163, 164, 366 Information and Communications Technology (ICT) revolution, xii–xiii, xxi, xxviii, 117, 148, 161, 162, 175–211, 213, 313, 321–22, 338, 340, 382, 393, 394 automation in, xii, xviii, 3, 143–44, 175, 178, 185–87, 314 communities and, xviii–xx, 176, 184–88 decentralization and, 312–13 interconnected world and, 350–51 jobs and, 143–44, 173, 175, 177–88, 395 trade and, 143–44, 173, 181–88 inheritance, 37, 45, 105 Inquiry into the Nature and Causes of the Wealth of Nations, An (Smith), 80 intellectual property, 73, 183, 278, 351, 362–63, 382–84 patents, 204–6, 362, 382–84 International Monetary Fund (IMF), xxvi, 146, 151, 270, 367, 368–69 international responsibilities, 363–67, 372, 397 internet, 117, 310 China and, 266, 350 community and, 330–35 political views and, 332–33 Ireland, 237, 238, 353–54 Italy, 145, 162, 303–4, 359 in European Union, 169 Montegrano, 12–14, 113, 227 in postwar period, 149, 152 Jackson, Andrew, 93 James I, King, 66–67 Jams II, King, 70 Janesville, Wisc., 341 Janesville (Goldstein), 186 Japan, 157, 160, 302, 368, 380 aging population in, 292–93 currency in, 366 immigration and, 292–93 income in, 191 in postwar period, 148, 153 protectionism in, 354 Jeffers, Jessica, 205 Jefferson, Thomas, 58 Jensen, Michael, 196 Jiang Zemin, 251 jobs, xii, xviii, 163, 164, 224, 343, 389, 395 African Americans and, 230–31 credentials and, 233–34, 317, 393 ICT revolution and, 143–44, 173, 175, 177–88, 395 and lump of labor fallacy, 180 mercantilism and, 62–63 occupational licensing and, 206–7, 387–88, 393 Second Industrial Revolution and, 122 see also income and wages; workers Johnson, Lyndon, 157–58, 229 Juncker, Jean-Claude, 172 Jungle, The (Sinclair), 104 Justice, US Department of, 202 Kahn, Alfred, 165 Kalanick, Travis, 196 Kaplan, Steve, 192 Katz, Bruce, 303 Kautilya, 31 Keynes, John Maynard, 154, 163, 395 Khan, Khizr, xxi Khilnani, Sunil, 298 Khodorkovsky, Mikhail, 111 Kim, Han, 220 King, Martin Luther, Jr., 157, 158, 397 Kleiner, Morris, 207 knowledge, diffusion of, 204–6 Krueger, Alan, 207 Kyoto Protocol, 365 laissez-faire, 77–78, 81, 83 landowners, 37, 58, 72, 74 gentry, 54–58, 64–66, 71, 72 Lasch, Christopher, 227 Latin America, 72, 93, 96 Lee Kuan Yew, 247 LEGO, 391 lending, see loans Le Pen, Marine, 236 Lerner, Josh, 362 Levine, David, 382–83 liberal democracy, 74–75 liberalism, 83, 160 liberalization, 206 in China, 248–67, 276 in India, 269–71, 273, 276 private sector’s reaction to, 194–201, 207–8 liberal market democracies, xiii, xx, xxvii libertarianism, 115 limited-access societies, 97–98 Lindsey, Brink, 205 loans, 44–45, 48 contract in, 29–31 see also usury lobbying, 378, 389 localism, xxi, xxviii, 285, 286, 303 inclusive, xxii, 22, 285–87, 289–302, 327, 351, 394 long-term benefits of, 303 location, importance of, 219–21 Long, Huey, 136 looms, 18–19, 116, 188 Louis XIV, King, 60, 65, 66 Luce, Edward, 227 Luther, Martin, 46 Madison, James, 97, 218 magnates, decline of, 53–54 Mahajan, Vijay, 337 Malthus, Thomas Robert, 83 Mann, Horace, 121 manufacturing, 152, 184–85, 206 Mao Zedong, 247–50 markets, xiii, xv, xvii–xviii, xx, xxii, xxvii–xxviii, 25–27, 50, 56, 77–106, 145, 154, 172, 173, 243–44, 283, 184, 285–87, 304, 393, 394 community adjustment to, 388–92 community and state buffers against volatility in, 127–38 community loss of faith in, 115–19 community values and, 390–92 competition in, see competition data in, 384–86 definition of, xiv democracy and, 106, 110 emerging, 245, 271; see also China; India fairness in, 115–16 freeing, 80–81 laissez-faire and, 77–78, 81, 83 liberalization of, see liberalization liberal market democracies, xiii, xx, xxvii perceived legitimacy of players in, 110–12 philosophy for, 81–84 reforming, 373–92 separation from community, xiv–xv state and, 304 transactions in, 3, 4 unbridled, 84–87 see also trade marriage, 231, 235 Marshall Plan, 149–51, 365 marshmallow test, 222–23 Marx, Karl, 49, 78, 87–91 Marxism, 87–91, 112, 115, 249, 287 Maximum Feasible Misunderstanding (Moynihan), 158 McClure’s Magazine, 103 McKinley, William, 106 McLean, Malcolm, 181 meatpacking industry, 104, 107–8 Medicare, 241, 324 mercantilism, 62–65, 80 Merchant of Venice, The (Shakespeare), 30 meritocracy, 390, 393 children and, 224–25, 228 in China, 257, 265 Merkel, Angela, 241 military technologies, 42–44, 51, 53 Mill, Harriet, 81 Mill, John Stuart, 81–83 minorities, 218, 219, 289, 296–97 affirmative action and, 300–302 see also African Americans; immigration, immigrants Mischel, Walter, 223 misery index, 163 Mitterand, François, 168 Mokyr, Joel, 20, 21 monarchy, 51–53, 56–59, 61–63, 65, 73 monasteries, 54, 57, 72 moneylending, see loans Monnet, Jean, 154 monopolies, 58–62, 64, 80, 81, 87, 91, 97, 99, 105, 106, 108, 109, 112, 201–7, 283, 379–82 antitrust laws and, 101, 103–4, 381–82 Montegrano, 12–14, 113, 227 Moore, Barrington, 73 Moretti, Enrico, 220 Morgan, John Pierpont, 99, 104 Morse, Adair, 220 Moynihan, Daniel Patrick, 158, 340 multilateral institutions, 367–70 Murphy, Kevin, 196 Murray, Charles, 227 muskets, 42–43 Muslims, 21, 35, 36, 241, 242, 272, 277 Napoleon I, 126 nationalism, xvii, 64, 184, 330, 397 civic, 297–99, 302 ethnic, 215–17; see also populist nationalism mercantilism and, 63 populist, see populist nationalism Nation at Risk, A, 232–33 nation-states, 26, 42, 50, 51–52, 61–62 Nehru, Jawaharlal, 267, 270, 287, 298 neighborhoods, 297 isolation index and, 333 sorting and, see residential sorting see also community Netville, 331–32 Neumann, Franz, 112 New Deal, 134–35 New Localism, The (Katz and Nowak), 303 news consumption, and diversity of opinions, 332–33 New York Times, 19, 98, 218, 387 Nixon, Richard, 98, 108 North, Douglass, 70, 97 Nowak, Jeremy, 303 Obama, Barack, xvii, 158, 235, 240 India visited by, 273 Obama, Michelle, 240 Obamacare, 144, 214, 239–41 Oceana (Harrington), 58 oil industry, 84–86, 99, 103, 107, 111 Oliver, Douglas, 9 one percent, 102, 191–94 On Liberty (Mill), 81–83 open-access societies, 98 Opium Wars, 349–50 Organization for Economic Co-operation and Development (OECD), 189–90 Our Towns: A 100,000-Mile Journey into the Heart of America (Fallows and Fallows), 344 Owen, Robert, 88 Owens, Ann, 226 Papal Revolution, 38, 40 parents, 222–31, 343 Paris Agreement, 365 parliaments, 77, 78–79 English, 57, 60–62, 65–70, 74, 77, 84, 105 patents, 204–6, 362, 382–84 patriotism, 298 peasants, 37–38, 73, 74, 78 see also feudalism, feudal communities Peltzman, Sam, 202 Perez, Carlotta, 118 Petersen, Mitchell, 15, 219 pharmaceutical drugs and companies, 183, 184, 204, 354, 362–63, 384 Physiocrats, 77 Piketty, Thomas, 191 Pilsen community, xxii–xxvi, 12, 298, 344, 381 Pirenne, Henri, 45 plague (Black Death), 40, 41–42 Polanyi, Karl, 84 police officers, 312 politics: conflict over, 234–36 isolation index and, 332–33 left-wing, xiii, xix, xxvii, 214, 217, 394 right-wing, xiii, xix, 214–17, 394 Polybius, 118 population aging, 260, 284, 286, 292–93, 324, 342–43, 348, 396 population diversity, see diversity population growth, 83, 152, 162–63 populism, xiii, xix, xxviii, 63, 136, 137, 211, 213–44, 284 in China, 276–79 and conflict over values and politics, 234–36 in Europe, 241–43 Global Financial Crisis and, 236–43 growing divide and, 218–19 in India, 272, 276–78 left-wing, 214, 217 Obamacare and, 239–41 Populist movement at turn of nineteenth century, 23, 26, 79, 98–101, 102, 105–6, 112, 244, 265 reemergence in the industrial West, 213–44 right-wing, 214–17 types of, 214–18 populist nationalism, xiii, xix–xx, xxi, xxvii, 144, 216–17, 241–44, 246, 276–79, 286, 289, 295–300, 302, 352, 353 in China, 276–79 in Europe, 241–43 in India, 276–78 why it cannot work, 296–97 Populist Revolt, The (Hicks), 99 Portugal, 148, 238 Poterba, James, 140 poultry farms, 354–55, 357 poverty, 396 African Americans and, 157 Elberfeld system of assistance, 129–31, 320 War on, 158, 160, 229 Powell, Enoch, 159 presidential election of 2016, 235, 236, 333, 354 Price, Brendan, 185 Princeton University, 125 printing press, 41–42, 46 private sector, 107–8, 111, 139, 147, 283, 284, 352, 371 liberalization and, 194–201, 207–8 Progressives, 26, 79, 98–99, 102–6, 112, 124, 134, 137, 244, 265 property, 26, 52, 57, 58, 74, 79, 83, 103, 115, 352, 362, 374, 394 competition and, 286 intellectual, see intellectual property land, see landowners taxes on, 121, 123 as theft, 110–11 protectionism, 108, 258–59, 278, 306, 353–56, 364 Protestant Ethic and the Spirit of Capitalism, The (Weber), 47 Protestant Reformation, 40–41, 47, 49 Protestants, 48, 49 public hearings, 389–90 Putnam, Robert, 227, 334 Quakers, 16–17, 230 race, see ethnicity and race race to the bottom, 358–60 railroad industry, 85, 87, 99, 101 Ramanathan, Swati, 312 Ramcharan, Rodney, 72 ranchers, 9–10, 11 Rand, Ayn, 80, 391 R&D, 183–84 Rashtriya Swayamsevak Sangh (RSS), xix, 277 Rauh, Joshua, 192 Rawls, John, 115 Raymundo, Raul, xxiii, xxvi Reagan, Ronald, 165, 194, 232 Reeves, Richard, 224 Reformation, 40–41, 47, 49 regulation(s), 103–5, 107–8, 165, 172 antitrust, 202 of banks, 358–60 communities and, 285, 304, 306–7, 341, 357 competition and, 165, 387–88 deregulation, 165–67, 194, 197 harmonization of, 354–63, 365, 371 relief efforts, 131–33, 135 see also safety nets religion, 49, 51, 64 Protestant Reformation, 40–41, 47, 49 Protestants, 48, 49 see also Catholic Church Republicans, 235–36 residential sorting, 144, 177, 222, 227, 314 by income, 307–9 race and immigration and, 229–31 resources, policies on, 365 Resurrection Project, xxiii–xxvi Ritter, Jay, 201 Robinson, James, 94 Rockefeller, John D., 84–91, 98, 103, 104, 108, 200 Rodgers, Daniel, 334 Rodrik, Dani, 364–65, 371 Roman Republic, 58 Romney, Mitt, 235 Roosevelt, Franklin, 134–37, 156 Roosevelt, Theodore, 106 Rosen, Sherwin, 193 Russell, John, 95 Russia, 97, 287, 292, 354, 369 wealthy in, 111 Saez, Emmanuel, 191 safety nets, 139, 173, 290 caregivers and, 319–20 community and, 127–38, 318–25 in Europe, 156 government support in, 322–24 health care, see health care paying for, 324–25 for peasants, 37–38 in U.K., 155–56 in U.S., 133–34, 156, 157–58, 320–21, 324 welfare, 129, 137, 148, 158, 230 Salam, Reihan, 235 Sandel, Michael, 389–90 Sanders, Bernie, 214 Satyanath, Shaker, 112 schools, see education and schools Schumpeter, Joseph, 203, 379 Schwartz, Heather, 225–26 science, 21 “Second Coming, The” (Yeats), 141 Second Federal Bank, xxv SeeClickFix, 311–12 Sen, Amartya, 287 Shakespeare, William, 30 Shapiro, Jesse, 332–33 Share Our Wealth Society plan, 136 Shleifer, Andrei, 197 Sinclair, Upton, 104 Singapore, 247, 291, 318 Singh, Manish, 336 Singh, Manmohan, 270 Siuai people, 9 smartphones, 175, 178, 182–83 Smith, Adam, 17, 64, 77, 80–81, 83, 84, 87, 91, 105, 200 Smoot Hawley Act, 138 socialism, 132, 138, 145–47, 168, 250 in India, 267–69, 391 socializing the young, 5–7 social media, 330, 354, 386 social relationships, 7–8 social safety nets, see safety nets Social Security, 134–38, 187, 241, 324 Sokoloff, Kenneth, 72, 96 sorting, see residential sorting South Sea Company, 68, 69–70 sovereignty, 349–72 and controlling flows, 351–54 and harmonization of regulation, 354–63 Soviet Union, 91, 145–47, 153–54, 250, 251, 267, 287, 367 Spain, 148, 162, 169, 237, 238, 353–54 Spence, Michael, 234 stagflation, 163 Standard Oil, 86, 99, 103, 107 Stanford marshmallow test, 222–23 state, xiii, xv, xvii–xviii, xx–xxi, xxvii–xxviii, 25–27, 50, 139, 140, 172, 283–86, 304, 393 anti-state ideology and, 176 buffers against market volatility, 127–38 Church and, 45–46 community and, 303–25, 345–46 constitutionally limited, 52–74, 83 definition of, xiii–xiv growth of, 145 international responsibilities and, 363–67, 372, 397 laissez-faire and, 77–78, 81, 83 markets and, 304 relief efforts from, 131–33 separation from community, xiv–xv strong but limited, rise of, 51–75 sustainable financing for, 65–71 steel industries, 87, 99, 122, 185, 186, 253, 261, 338, 364, 366 European Coal and Steel Community, 150 student loans, 317–18 suffrage, see voting, suffrage Summers, Larry, 197 Supreme Court, U.S., 103, 384 Sweden, 138 Swift, Taylor, 193 Talleyrand, Charles Maurice de, 66 Tarbell, Ida, 103, 200 tariffs, 61, 63–64, 80–81, 100, 108, 138, 150–51, 164, 181–83, 217, 242, 258–59, 271, 277, 352–53, 356, 363, 364, 366, 371 General Agreement on Tariffs and Trade, 146, 150, 353 Tawney, Richard, 34–35, 46 taxes, 59, 61–62, 102–5, 156–57, 163–64, 206, 308–9, 364 for education, 121, 123 property, 121, 123 tax holidays, 341 tax incentives, 345 on towns, 59–60 universal basic income and, 322–23 tax preparation, 179, 180 Tea Party movement, 239–41, 242, 333 technology, xii, xxviii, 117, 160–62, 175–76, 283, 284, 286, 287 automation in, 18, 84, 179, 180, 284 China and, 261–62, 278 community and, 119, 335, 344–45 disruptive change from, xii–xiii, xix education and, 122–23 feudal community and, 41–42 financial crises and, 118 incomes and, 188–94 job losses from, xii, xviii public anxiety about, 116–18 winner-take-most effects of, 191–94 see also Industrial Revolution; Information and Communications Technology revolution Teles, Steven, 205 Thatcher, Margaret, 165–66, 194 three pillars, xiii, 25–27, 393, 394 balance between, xvii–xviii, 175, 394 see also community; markets; state Tiananmen Square protests, 250–51 Tiv people, 7–8 Tönnies, Ferdinand, 3–4 totalitarian regimes, 97 trade, 62–64, 80–81, 143, 146, 149–51, 154, 160, 164–65, 172, 181, 245, 271, 283, 307, 352–53, 363, 371 “beggar thy neighbor” policies and, 364 communications costs and, 181, 182 communities and, xviii–xx, 335, 352 European, with Muslim lands, 36 ICT revolution and, 143–44, 173, 181–88 incomes and, 188–94 protectionism and, 108, 258–59, 278, 306, 353–56, 364 tariffs and, see tariffs transportation costs and, 181–82 Trade Related Intellectual Property Rights Agreement (TRIPS), 362 training and socializing the young, 5–7 transactions: in communities, 3, 8–9, 10–11 market, 3, 4 Trotsky, Leon, 90 Trump, Donald, 235 Truly Disadvantaged, The (Wilson), 230 Turkey, xix, 97, 167, 190, 245 Uber, 196 Unified Payments Interface (UPI), 386 unions, 165, 198, 206, 360, 361 United Kingdom, 173 Companies Act in, 377 health care in, 156 income in, 191, 192 in Opium Wars, 349–50 safety net in, 155–56 United Nations, 367 United States, 143, 145, 149, 246, 298 African Americans in, see African Americans agriculture in, 184 China and, 278 Civil War in, 74, 93, 133–34 competitive market in, 98–105 Constitution of, 71 diversity in population of, 134 financial crises in, 87–88, 118 GI Bill in, 156, 157 Gilded Age in, 87 gold standard in, 100 government debt in, 324 growth of, 148, 162 health care in, 158, 203 hegemony of, 148, 367–69 immigration and, 137, 159–60, 292 Industrial Revolution in, 121 manufacturing in, 184–85 Marshall Plan of, 149–51, 365 in postwar period, 148 presidential election of 2016, 235, 236, 333, 354 safety net in, 133–34, 157–58, 320–21, 324 schools in, 119–25, 127, 190–91, 233–34, 317 South of, 72, 74 Supreme Court, 103, 384 voting rights in, 92–93, 96 Western settlers in, 72, 99–100 universal basic income (UBI), 322–23 universities, see colleges and universities University of Chicago, xxiii, xxvi, 87, 124–25, 164, 290–91 University of Rochester, 223 usury: Catholic Church and, 34–42, 44–46, 49 favorable public attitudes toward, 44 intellectual support for ban on, 39–40 prohibition on, 31–32 rationale for proscribing, 32–34 values: community, and tolerance for markets, 390–92 conflict over, 234–36 Virginia, 58 Voigtländer, Nico, 112 Volcker, Paul, 163 Voth, Hans-Joachim, 112 voting and suffrage, xxvii, 26, 79, 105 extension of franchise, 91–98 wages, see income and wages Wallis, John, 97 Washington Post, 108 wealth, 111, 395–96 Wealth of Nations, The (Smith), 80 weavers, 18–19, 116, 188 Weber, Max, 47, 38 Weingast, Barry, 70, 97–98 welfare, 129, 137, 148, 158, 230 Wellman, Andrew, 331 Whigs, 67, 95 William of Orange, 67 Wilson, William Junius, 230, 231 Wilson, Woodrow, 125 Wolf, Martin, 355 workers, 75, 78, 79, 87, 89, 97, 127–28 education and capabilities of, 313–18 insurance plans for, 132 rights of, 360–61 strikes by, 102 unions for, 165, 198, 206, 360, 361 see also income and wages; jobs working at a distance, 219, 220 World Bank, 151, 253–54 World Trade Organization (WTO), 353, 356, 362 World Values Survey, 297 World War I, 103, 112, 124 World War II, xxvii, 138, 139, 140, 143, 145, 146, 155–57, 210, 243, 367 Marshall Plan and, 149–51, 365 postwar period, 148–54 Wulf, Julie, 193 Xi Jinping, 261, 278 Xiushui Market, 255 Yeats, W.

Dopamine Nation: Finding Balance in the Age of Indulgence
by Anna Lembke
Published 24 Aug 2021

See lying and deception deification of the demonized, 114–15 delaying gratification and delay discounting phenomenon, 102–5, 109 effect of broken promises on, 194 impaired by dopamine overload, 102, 196 and physical strategies for self-binding, 116 and plenty vs. scarcity mindsets, 195–96 and Stanford marshmallow experiment, 115–16, 193–94 demonized substances, deification of, 114–15 denial, 177 Denmark, 39, 44 depersonalization, 192 depression and alcohol use, 78–79 client’s experience with, 40 growing incidence of, 45 and pleasure-pain balance, 65 taking medications for, 132 derealization, 192 Diagnostic and Statistical Manual of Mental Disorders (DSM-V), 61 diet as risk factor, 29 dieting, 112–13 digital drugs, 23 disclosure porn, 184–86 discomfort, intolerance of, 40 distractions active pursuit of, 40–41, 231 and dopamine fasts, 83–84 and pain avoidance, 44 and personal devices, 40–41 disulfiram as means of self-binding, 97–98 dogs, pain-response study of, 145–47 dopamine dopamine receptors, 48, 56, 56 function of, 48–49 identification of, 48 used to measure addictive potential, 2, 49 See also reward pathways in the brain dopamine deficit state, 55, 59, 78, 167 dopamine fasting, 71–88 contraindications for, 79–80 and co-occuring psychiatric disorders, 80–81 homeostasis as goal of, 77, 88 steps of (see DOPAMINE framework) and withdrawal, 84 DOPAMINE framework, 72–88 D for Data, 72–73 O for Objectives, 73–74 P for Problems, 74–75 A for Abstinence, 76–81 M for Mindfulness, 81–84 I for Insight, 84–85 N for Next Steps, 85–86 E for Experiment, 87–88 double life, 12 Douthat, Ross, 35 drugs and drug use cues associated with, 58 and decreased sensitivity to rewards, 56 disease burden attributed to, 29 and epigenetic changes, 20 exercise’s impact on, 150–51 moderation as goal, 87–88, 107–9 overdoses of, 30 and pleasure-pain balance, 54 and polypharmacy, 22, 23 potency of, 21–22 and religious engagement, 214 “drunkalogues,” 185 Dunnington, Kent, 2 Duragesic fentanyl, 18 Dutto, Vince, 26–27 DXM, 22 dysphoria, 57 dysphoria driven relapse, 57 East Asians, 97 Eastern Europe, 29 ecstasy, 115 education levels, 29–30 El Capitan, Honnold’s ascent of, 159–60, 166–67 electroconvulsive shock therapy (ECT), 155–56 electronic devices, personal, 40–41 emotions psychotropic drugs’ impacts on, 131 tolerating painful, 83–84 using food/drugs to cope with, 210, 211–13 empathy, 217 endocannabinoids, 150 endogenous opioid peptides (endorphins), 150 endurance athletes, 167 England, 129 entertainment, demand for, 40 epigenetic changes, 20 epinephrine, 150 Epstein, Mark, 192 equality, 30 exercise, 150–52, 161–65 experience-dependent plasticity, 62–63 experiences, value of recounting, 177 experimentation in DOPAMINE framework, 87–88 exposure therapy, 156–59 extreme sports, 165–67 “false self,” 191–92 fasting, 149–50 fear, increased tolerance to, 159–60 female modesty, 112 fentanyl, 21, 22 fibromyalgia, 154–55 Finucane, Tom, 67 food addiction to, 88, 99–100 processed, 22 used to cope with difficult emotions, 210, 211–13 and weight-loss surgeries, 99–100 France, 44 Freedman, Daniel, 75 free-rider problem, 220–22, 228 Freud, Sigmund, 36 future, confidence in, 195–96 gambling categorical strategies for addiction to, 111 and loss chasing, 62 and naltrexone as means of self-binding, 96 online, 23 pathological, 61–62 gastric binding, 99 gastric bypass, 99 gene expression and epigenetic changes, 20 generalized anxiety disorder (GAD), 32, 44–45 Germany, 39 glial cells, generation of, 150 gluten-free products, 113 goals moderation in drug use as, 87–88, 109 and Next Steps in dopamine framework, 85–86 “God Within” theology, 35 Goethe, Johann Wolfgang von, 53 Going on Being (Epstein), 192 grandparents with addictions, 20 Greeks, ancient, 141 hallucinogens, 114–15 happiness, 34–35 Hatcher, Alexandrea, 134 health care, affordable, 30 heart rate following pain exposure, 146, 147, 148 Hebb, Donald, 179 hedonic set point, 54, 145 hedonism, 37, 57 Hering, Ewald, 53 heroic therapies, 153 heroin clients’ experiences with, 22, 125 and delay discounting phenomenon, 103 and development of OxyContin, 114 impact of access on use of, 101 and naltrexone as means of self-binding, 96–97 origins of, 21 hibernation, 143–44 hippocampus, 67 Hippocrates, 153 Hoff, Wim, 142 homeostasis in brain abstinence necessary for, 77 and electroconvulsive shock therapy (ECT), 156 as goal of dopamine fasting, 88 inability to achieve, 128 and pain’s ability to trigger pleasure, 144–47 and pleasure-pain balance, 51–53 reestablishing, in absence of drugs, 58 using medications to restore, 127–35, 234 honesty, 171–205 accountability promoted by, 186–92 awareness cultivated by, 176–82, 234 contagiousness of, 192–97 as daily struggle, 205 intimate connections promoted by, 182–86, 227, 234 neurobiological mechanisms of honesty, 177–79 as painful, 171 as preventative measure, 197–204 role of, in recovery, 172–75 and shame cycle, 217 teaching children, 204, 224–27 Honnold, Alex, 159–60, 166–67 hormesis, science of, 148–52 hotel rooms, 17–18 Hung, Lin, 184 Huxley, Aldous, 40 hydrocodone, 21 hydromorphone, 21 hypnotics, 129 hypodermic syringes, 21 Iannaccone, Laurence, 219–21 Iannelli, Eric J., 107 Iceland, 39 immediate gratification, 104.

Termites of the State: Why Complexity Leads to Inequality
by Vito Tanzi
Published 28 Dec 2017

See 2007-2008 Financial Crisis Financial institutions executive compensation in, 168–69 financial penalties against, 158, 169–70 influence on governments, 113–14 regulations and, 126, 155, 157 rents and, 119 sanctions against, 157 “shadow banking,” 108, 119, 242, 329–30 “too big to fail” and, 84, 119, 168, 169 in UK, 157 in US, 126, 157 Financial instruments, complexity of, 106, 107, 108 Financial sector abuses in, 331 asymmetry in, 330–31 complexity of, 329–31 function of, 330 rents and, 330 securitization in, 330 “shadow financial sector,” 243 transaction activity in, 330 The Financial Times, 217, 352 Financial versus real investment, 106–7 432 Fine, Sidney, 18 Fines, 142 Finland Gini coefficient in, 317 marginal tax rates in, 376 Fiscal councils, 72–73, 272 Fiscal drag, 61 Fiscal policy, stabilization policies and, 237 Fiscal rules, 71–72, 272 Fiscal tools, 38 Fischer, Stanley, 113–14 Fisher, Irving, 46–47 Fishing industry, 149–50 Flat taxes, 381–82 Fogel, Robert William, 67–68 Food industry, 114–15, 167 Forbes, 38, 203, 342, 350 Forte, Francesco, 272 “Fracking,” 167, 283–84 France authorizations in, 137, 145 Cour des Comptes, 290 economic planning in, 27 ex post income distribution in, 118 “fake goods” in, 149 financial accountability in, 291 French Revolution, 89, 305 income inequality in, 306 marginal tax rates in, 376 occupational licensing in, 125–26 public spending in, 23–24, 53 regulations in, 279 wealth tax in, 342 welfare policies in, 43, 214 France, Anatole, 400 Francis (Pope), 28, 81 Frazer Institute, 60–61, 173 Free rider problem, 175–76 Free trade, 396–97 Friedman, Milton generally, 7–8, 60–61, 394 on basic minimum income, 212 on countercyclical policy, 61–62 on deficits, 72 on information in exchanges, 114–15 on irrationality, 141–42 on Keynes, 70 on limited role of government, 85, 313–14 on market, 34 on taxation, 367–68 Fundamental law of regulations, 278–79 Galbraith, John Kenneth, 3, 45–48 Gangs, 97–98 Gates, Bill, 196, 326, 356–57 Index Geithner, Tim, 113–14, 156 General Electric, 377 General Theory (Keynes), 46–47 Genetically modified food, 182–83 Germany authoritarian government in, 23 economic planning in, 27 “fake goods” in, 149 Gini coefficient in, 317 laissez faire in, 18 marginal tax rates in, 376 reforms in, 22 “revolving door policies” in, 335–36 unions in, 231 welfare policies in, 218, 219 welfare states in, 20 Gini, Corrado, 19 Gini coefficient.

…

See Intellectual property protection of, 94–96, 193–94, 202 real property, 95, 308 tangible property, 94 Protection of property, 94–96, 193–94, 202 Proudhon, Pierre-Joseph, 218–19 Psychological effects of income inequality, 319–21 Psychologie du Socialisme (le Bon), 28 Public assistance. See Welfare policies Public employees, 232–33, 235, 291–92 Public goods overview, 175 defense spending as, 175–78 education as, 180–81 externalities and, 181–82 free rider problem, 175–76 global public goods, 120–21 health care as, 180–81 housing as, 180–81 legal rules and, 255 Musgrave on, 176–77 NASA as, 179 public spending, necessity of, 176–77 pure public goods, 175, 177–78 quasi-public goods, 180–81 research as, 179–80 Samuelson on, 175–77 in UK, 180 welfare as, 181 Index Public institutions.

pages: 1,073 words: 314,528

Strategy: A History
by Lawrence Freedman
Published 31 Oct 2013

See also Ford Motor Company early business career of, 478–479 management strategies of, 481–483, 486 successors to, 501 Taylorism and, 483 Forman, James, 377 Forrest, Nathan B., 108 Fortune Magazine, 491 Foucault, Michel discourse and, 426–427, 430 epistemes and, 424 Kuhn and, 424 New Left and, 426–427 power systems and, 424–427, 558–559 sexuality and, 423–424 strategy and, 425–427 Foundations of the Science of War, The (Fuller), 132 fourth-generation warfare, 225–227 Fox, Justin, 526 framing concept of, 39, 415–416, 418 decision-making and, 593 political communication and, 422, 434–436, 454, 461, 593, 615 France air power and, 127 Algeria and, 188–189 Dreyfus Affair in, 336 Fifth Republic and, 403 First World War and, 114, 123–125, 127, 131 Franco-Prussian War and, 105–106, 112, 274–275 Hundred Years’ War and, 48–49 Napoleonic Wars and, 78–81, 116 naval power and, 116 New Left and, 403, 428 Revolution of 1848 in, 254–256 Second Republic of, 258–259 Second World War and, 139–143, 199, 210, 617 student protests in, 403 Third Republic of, 271 Vietnam and, 186, 188 Franco-Prussian War (1870), 102–103, 105–107, 112 Franco, Francisco, 142, 279 Frankfurt Institute for Social Research (“Frankfurt School”), 372, 399, 415 Frazier, Franklin, 351 Frederick the Great (Frederick I, King of Prussia), 75–76, 84, 109 Frederick William (crown prince of Prussia), 106–107 Free Speech Movement (Berkeley), 366, 406 free trade, 96–97 free-rider problem, 583–584, 595–597 Freedom is an Endless Meeting (Polletta), 377 French Revolution levée en masse conscription and, 76, 425 Marx and, 259, 617 military impact of, 70, 240 populist aspects of, 97 professional revolutionaries and, 249–250 Freud, Sigmund, 339–340, 602 Friedan, Betty, 409 Friedman, Milton, 515–516, 526 Fromm, Erich, 369 Frontinus, 43, 64, 72 Fujisawa, Takio, 567 Fuller, John Frederick Charles “Boney” on crowd psychology, 131–133 Liddell Hart and, 134–135, 137–138 military strategies of, 129–130 Plan 1919 and, 130 Functions of the Executive, The (Barnard), 471 Future of Industrial Man, The (Drucker), 493 Gaither, H.

…

Rowan, 516–517, 576 Galambos, Louis, 498 Galbraith, John Kenneth, 418–419, 491–492, 501 Gallup, George, 437 Galula, David, 188–189, 224 game theory. See also rational choice theory The Bible and, 11 coalitions and, 582–583 cooperation and, 584–587 economics and, 514–515 Fortune magazine and, 495 free-rider problem and, 583–584, 595–597 limits of, 514–515, 528–529, 580–581, 605–606 minimax solution and, 151–153, 155, 165, 582 nuclear weapons and, 155 origins of, 151–153 prisoner’s dilemma and, 154–155, 585–586, 590, 596 RAND Corporation and, 161–162, 513 Schelling and, 160–162, 166–167, 515, 529, 585 Games and Decisions (Luce and Raiffa), 161–162 Gamson, William, 582 Gandhi, Mohandas assassination of, 350 Du Bois and, 351 Indian independence movement and, 348–350 King Jr. and, 358–360 nonviolent direct action and, 348–351, 354–355, 358–359, 385, 412 pacifism and, 347, 352 satyagraha and, 348, 355 Thoreau and, 347, 675n4 Tolstoy and, 347–348 United States and, 351–352 Gantt, Henry, 464 Ganz, Marshall, 387 Garibaldi, Giuseppe, 179 Garstka, John, 217 Gat, Azar, 9, 126 gay liberation, 411 Gay, Edwin, 462 Gekko, Gordon (Wall Street), 508 Gell-Mann, Murray, 197 General Electric, 442, 494, 498, 503–504 General German Workers’ Association, 284 General Motors antitrust issues and, 489, 494–495, 497 Chevrolet and, 486, 488–489, 495, 497 as competitor to Ford, 481–482, 484–486 Drucker and, 493–495 Flint sit-down strike and, 381, 487–489, 495 labor relations and, 487–490, 495 Sloan’s management of, 483–486, 496–498 Toyota and, 523 general strikes, 287–289 geopolitics, concept of, 120–122 German Confederation, 255 German Democratic Party, 304 German Federation, 255 German Ideology, The (Marx and Engels), 252 Germany.

…

See Bonaparte, Napoleon Napoleonic Wars Clausewitz, and, 82–83, 90–91, 237, 617 coalitions in, 90–91, 115 France and, 78–81, 116 Great Britain and, 116 guerrilla warfare and, 179–180, 240 international peace movement and, 96 naval warfare and, 119–120 Prussia and, 78–79, 82 Russia campaign and, 78–83, 90, 209 Spain and, 90, 179–180, 240 Tolstoy’s depiction of, 98–102 narrative business management and, 563–567 qualities of, 621–622 different notions of, 427–432 information operations and, 233–234 political campaigning and, 433–435, 437, 449 problems with 615–618 Nash, John, 514–515, 594, 600 Nation of Islam, 391–392 National Association for the Advancement of Colored People (NAACP), 351, 357, 360–361 National Football League (NFL), 522 National Liberation Front (FLN, Algeria), 392 National Liberation Front (Vietnam), 397 National Organization of Women (NOW), 409–410 NATO (North Atlantic Treaty Organization) Berlin blockade crisis and, 173 continental European defense and, 199–200, 203, 210 free-rider problem and, 583–584 Turkey and, 175 Nazis. See also Hitler, Adolf ideology of, 122, 335, 343 propaganda and, 336, 342–343, 414 Nechayev, Sergei, 276, 392 neo-Machiavellians, 321, 329, 335 netwar, 229–230 neuroscience. See human brain, studies of New Deal, 334, 441, 482, 487, 489–490 New Industrial State, The (Galbraith), 492 New Jersey, unemployment study in, 472–473 New Left.

Where Does Money Come From?: A Guide to the UK Monetary & Banking System
by Josh Ryan-Collins , Tony Greenham , Richard Werner and Andrew Jackson
Published 14 Apr 2012

In contrast, the Eurozone economies, locked in to a fixed exchange rate regime with 17 other countries, must depend on the European Central Bank (ECB) to prevent sovereign defaults. The ECB fears ‘moral hazard’ – that states will take ECB interventions for granted if interest rates on their borrowing become too high and lose ‘fiscal discipline’, i.e. continue to run up budget deficits safe in the knowledge the ECB will bail them out. There is also a free rider problem – in contrast to the UK where monetisation of debt will only affect the UK, in Europe the monetisation of debt will affect (and be paid for by) all countries. Therefore there is an incentive for any individual nation to go back on any agreement to reduce government spending. Having said this, the ECB has bought billions of Euros worth of Greek, Irish, Portuguese, Spanish and Italian bonds from the secondary market in an attempt to prevent a loss of confidence in the European sovereign debt markets.

pages: 280 words: 76,638

Rebel Ideas: The Power of Diverse Thinking
by Matthew Syed
Published 9 Sep 2019

They found that when you attack someone’s character it undermines faith in their conclusions as powerfully as when you identify actual evidence questioning the basis of those claims. Playing the person rather than the ball works. In this sense, the ad hominem represents what economists call a free rider problem. All citizens benefit from the trust that is central to the functioning of democratic institutions, but this offers politicians an incentive to impugn the integrity of opponents, thus benefiting personally in electoral terms, but weakening the epistemic fabric upon which the collective intelligence of any democracy depends.

pages: 789 words: 207,744

The Patterning Instinct: A Cultural History of Humanity's Search for Meaning
by Jeremy Lent
Published 22 May 2017

This enabled early hominids to work collaboratively on complex tasks and transform their mimetic culture into cognitive communities that enabled them to share values and practices.18 There's a major flaw, however, to the theory that cooperation was the evolutionary driver of human uniqueness: the free-rider problem. What happens to a community when most people are sharing their resources but some are just going along for the ride, taking advantage of the others? Evolutionary researchers have modeled this problem extensively using game theory, testing real examples in the lab, and have discovered that it takes only a few selfish players to undermine the cooperation of others who trust each other.

…

See also Adam and Eve evolution anthropocentric interpretation of, 280 of anthropomorphism, 75–77 of cooperation, 45–47 critical transitions in, 24 genetic engineering directing future of, 420–21 human, 21–22, 49, 51 language, 58–66, 428 multilevel selection in, 371 “niche construction” in, 20–21 racist interpretation of, 16, 314–15 “selfish gene” interpretation of, 44–45, 462 spandrels in, 73–75 evolutionary psychology, 90 external symbolic storage, 78–80 Exxon Mobil, 393 Ezra (prophet), 220, 222 faylasuf, 320–23 Field of Hetep, 120, 126 Firefox, 439 Ford, Henry, 379 fossil fuels climate change and, 392–94 exploitation of, 388–89, 414–15 special interests and, 396 technological lock-in and, 396–97 fractal geometry, 263, 364–65, 370, 371 Franklin, Benjamin, 312 free-rider problem, 45–46 Freud, Sigmund, 286, 380 Fulgentius, Bishop, 244 Fuller, Buckminster, 389 Gaia theory, 370 Galileo, 209, 523 cosmology of, 346, 349, 522 Inquisition and, 335, 347–49, 522 Ganges River, 136, 391 GDP (Gross Domestic Product), 398–400, 534–35 alternative measures, 399 Geertz, Clifford, 31–32 Genesis, 116 genetic engineering, 376, 401, 408, 417–18, 440 in humans, 28, 420–21, 426, 429–30, 432, 539 genocide, 242, 504 and Americans, indigenous, 309–12 and European mind-set, 309–12, 333 in Old Testament, 241–43 geoengineering, 418–20, 425, 432 Gerbert of Aurillac, Pope, 341 Gestalt psychology, 263, 363, 367–68 ge wu.

pages: 276 words: 82,603

Birth of the Euro
by Otmar Issing
Published 20 Oct 2008

The huge sums required for such revenue sharing would probably far exceed what citizens would be prepared to pay. Any attempt to move in this direction would be likely to create serious political tensions. Quite apart from that, it would most likely be difficult if not impossible to develop a system that did not create considerable negative incentives (moral hazard, the free-rider problem) and invite abuse. This line of reasoning leads us back to the conditions for an optimal currency area, which may serve as a pointer to the necessary changes. There is accordingly no static answer to the question of whether ‘one size fits all’. Rather, what policy needs to do is to create the conditions whereby the single monetary policy does fit all.

pages: 304 words: 80,965

What They Do With Your Money: How the Financial System Fails Us, and How to Fix It
by Stephen Davis , Jon Lukomnik and David Pitt-Watson
Published 30 Apr 2016

Awareness is growing that citizen investors benefit when asset managers address ownership issues in ways other than trading shares, even if doing so does not gain the asset manager any ground over a competitor. We show that in chapter 3. In theory, if all asset managers bore the costs of engaging on systemic issues, there would be no free riders—but they don’t. Still, the more comprehensive the collective effort, the more the free rider problem is minimized. The United Nations’ Principles for Responsible Investment (UN PRI), for example, has some 1,260 signatories agreeing to six broad principles headed by a pledge to incorporate environmental, social, and governance factors into investment decision making. PRI signatories then commit to engage on those systemic issues with the companies whose shares they own.

pages: 310 words: 85,995

The Future of Capitalism: Facing the New Anxieties
by Paul Collier
Published 4 Dec 2018

But in return for bearing this risk how much control do you have over the management of the companies held by my pension fund? The company has to be accountable to someone motivated to care about the long-term performance of the company, and sufficiently knowledgeable to spot management mistakes. If share ownership is highly fragmented, there is a free-rider problem: nobody has much incentive to understand whether the long-term strategy of the management is smart. In Germany, the banks play this oversight role, holding shares on behalf of their owners and getting actively involved in company management. In America, and much of the world, it is played by the families that founded successful companies and which retain a blocking shareholding.

pages: 303 words: 83,564

Exodus: How Migration Is Changing Our World
by Paul Collier
Published 30 Sep 2013

See under countries of origin British Medical Association, 126 British Nationalist Party, 241 Brown, Dan, 214 Brown, Gordon, 21, 130, 244 California (United States), 85–86 Cameron, David, 138 Canada East Asian migrants in, 120–121 migration policy in, 12, 100, 157–158, 248–249, 264 national identity in, 17–18, 236–237 population density, 92, 137 Cape Verde, 184–185, 193 capital mobility, 23, 28–29, 36, 51, 121, 129–130, 265 carbon emissions, 257–258 Caribbean migration to Great Britain, 47–48 Catalonia, 235 categorical imperative, 260 charter cities, 103 Chauvet, Lisa, 185–187 Chekhov, Anton, 222 China brain gain versus brain drain in, 218, 220, 252 demography in, 123 economic growth in, 39–40, 201–202 economic productivity in, 149 education emigration and, 201 education investment in, 200 governance in, 183–184 national identity and, 17 remittances to, 207 return migration and, 201–202 Russia and, 249 Clemens, Michael, 58 climate change, 257–258 Clinton, Bill, 31, 200 Collier, Charles, 3, 273 community, concept of, 232–233 Condé, Alpha, 191 Congo, Democratic Republic of, 184 Conservative Party (Great Britain), 15, 103 cooperation experimental games measuring, 63–64, 66–67, 74, 80, 254 foundations of, 31–32 free-rider problem and, 63–64, 66 Kenya study of, 76, 239–240 mutual regard and, 62–63, 67, 83, 87 punishing transgression and, 63–64, 74, 79 trust and, 32, 64, 66–67, 73–74 Corden, Max, 118 Côte d’Ivoire, 191 countries of origin. See also specific countries brain drain and, 117, 184, 190–191, 195–204, 217–220, 225–226, 260–261 civil wars in, 189–190, 263 diasporas’ impact on, 180–182, 184–185, 187–189, 202–203, 221 discrimination in, 180 economic productivity in, 146–147, 149, 201, 204, 214, 226 education investment in, 197–201 education motivation for migration and, 158, 253 elites in, 150–151 “left behind” population in, 4, 23, 25, 217–226, 252–253, 257, 261, 270 migration’s economic impact on, 179, 195–196, 213–214, 217, 220, 269 migration’s impact on elections in, 185–187 migration’s impact on governance in, 180–190, 193, 217 migration’s impact on potential leaders of, 190–193 migration’s impact on the culture of, 187–188, 192 outsider attitudes in, 205–206 political institutions in, 181 population growth in, 213–216 proposed special supplemental tax on emigrants from, 150–152 return migration and, 201–202, 263 rural to urban migration within, 173–174, 215–216, 221, 272 social models in, 34–35, 96, 103, 132, 147–148, 179, 248, 254, 271 violence in, 98, 190 cultural differences as distinguished from racism, 21–22 economic consequences of, 34–35 ethnicity and, 75 value of, 95 cultural separatism, 97–98, 100–102, 243–244 Cyprus, 167–168 Denmark, 19, 118 Descartes, René, 231–232 diaspora communities.

pages: 277 words: 81,718

Vassal State
by Angus Hanton
Published 25 Mar 2024

Other countries had much higher DST rates, of up to 9 per cent of turnover, but all these will be swept away by the new deal. George Turner of TaxWatch worked out that the US tech giants will almost certainly end up paying less tax in the UK than they would have been liable for under a modest DST.44 Free rider problem The trouble with tax is that when someone does not pay their fair share, everyone else has to pick up more of the bill. It follows that the very low tax payments by US multinationals mean there is less money to pay for infrastructure upgrades, and local people have to shoulder a correspondingly heavier burden.

pages: 346 words: 89,180

Capitalism Without Capital: The Rise of the Intangible Economy
by Jonathan Haskel and Stian Westlake
Published 7 Nov 2017

“The Economic Implications of Corporate Financial Reporting.” Journal of Accounting and Economics 40 (1): 3–73. doi:10.1016/j .jacceco.2005.01.002. Griliches, Zvi. 1992. “The Search for R&D Spillovers.” Scandinavian Journal of Economics 94 (supplement): S29–47. Grossman, Sanford J., and Oliver D. Hart. 1980. “Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation.” Bell Journal of Economics 11 (1): 42–64. doi:10.2307/3003400. Groysberg, Boris, Andrew McLean, and Nitin Nohria. 2006. “Are Leaders Portable?” Harvard Business Review 84 (5): 92–100. Guy, Frederick. 2014. “Technological Change, Bargaining Power and Wages.”

pages: 1,544 words: 391,691

Corporate Finance: Theory and Practice
by Pierre Vernimmen , Pascal Quiry , Maurizio Dallocchio , Yann le Fur and Antonio Salvi
Published 16 Oct 2017

Demsetz, Production, information costs and economic organization, American Economic Review, 62(5), 777–795, December 1972. J. Ang, R. Cole, J. Wuhkin, Agency costs and ownership structure, Journal of Finance, 55(1), 81–106, February 2000. E. Fama, Agency problems and the theory of the firm, Journal of Political Economy, 88(2), 288–307, April 1980. S. Grossman, O. Hart, Takeover bids, the free-rider problem and the theory of the corporation, Bell Journal of Economics, 11(1), 42–64, Spring 1980. M. Jensen, W. Meckling, Theory of the firm: Managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 3(4), 305–360, October 1976. M. Jensen, Value maximization, stakeholder theory, and the corporate objective function, Journal of Applied Corporate Finance, 14(3), 8–21, Autumn 2001.

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Masulis, The choice of payment method in European mergers & acquisitions, Journal of Finance, 60(3), 1345–1388, June 2005. G. Gorton, M. Kahl, R. Rosen, Eat or be eaten: A theory of mergers and firm size, Journal of Finance, 64(3), 1291–1344, June 2009. S. Grossman, O. Hart, Takeover bids, the free rider problem, and the theory of the corporation, Bell Journal of Economics, 11(1), 42–64, Spring 1980. U. Hege, S. Lovo, M. Slovin, E. Sushka, Equity and cash in intercorporate asset sales: Theory and evidence, Review of Financial Studies, 22(1), 681–714, February 2009. M. Jensen, Agency costs of free cash flow, corporate finance, and takeovers, American Economic Review, 76(2), 323–329, May 1986.

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The table below shows the average hope for repayment in the case of bankruptcy, depending on the ranking of the debt. Whereas US senior creditors get, on average, 45% of their money back, most junior creditors will receive around 25% of their initial lending. Source: Moody’s Global Credit Policy, February 2017 Lastly, a company in financial difficulties gives rise to the free-rider problem (see Chapter 26). For example, a small bank participating in a large syndicated loan may prefer to see the other banks renegotiate their loans, while keeping the terms of its loan unchanged. 3. The limits of limited liability Modern economies are based largely on the concept of limited liability, under which a shareholder’s commitment can never exceed the amount invested in the company.

pages: 901 words: 234,905

The Blank Slate: The Modern Denial of Human Nature
by Steven Pinker
Published 1 Jan 2002

All of them collapsed from internal tensions, the ones guided by socialist ideology after a median of two years, the ones guided by religious ideology after a median of twenty years.53 The Israeli kibbutzim, originally galvanized by socialism and Zionism, steadily dismantled their collectivist philosophy over the decades. It was undermined by their members’ desire to live with their families, to own their own clothing, and to keep small luxuries or sums of money acquired outside the kibbutz. And the kibbutzim were dragged down by inefficiencies because of the free-rider problem—they were, in the words of one kibbutznik, a “paradise for parasites.”54 In other cultures, too, generosity is doled out according to a complex mental calculus. Remember Fiske’s ethnographic survey, which shows that the ethic of Communal Sharing arises spontaneously mainly within families (and on circumscribed occasions such as feasts).

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elitism Eliza Ellwood, Charles Elman, Jeffrey Elshtain, Jean Bethke Ember, Carol emotions altruism and culture and morality and empiricism autism and see also Blank Slate employment, gender gap in Enemies, A Love Story (Singer) Engels, Friedrich engineering, intuitive English language Enlightenment environmentalism Equal Protection clause Equal Rights Amendment equity feminism Essay Concerning Human Understanding An (Locke) essentialism Estrich, Susan estrogen ethnic groups: genetic differences among neologisms for stereotypes about violence and ethnocentrism eugenics euphemisms European Union euthanasia Evans, David Eve evolution conservative critique of cooperation in creationism and genome and group selection and of humans intuitive faculties and see also natural selection evolutionary psychology arts and deterrence and rape and stepparenting and Evolution of Human Sexuality, The (Symons) Expanding Circle, The (Singer) Expression of the Emotions in Man and Animals, The (Darwin) eyes Fagan, Jeffrey families: in behavioral genetics conflict in love in and politics see also parenting Farah, Martha Faris, Ellsworth Faris, Robert Farley, Frank fate Fausto-Sterling, Anne Fear of Flying (Jong) fears Feminine Mystique, The (Friedan) feminism difference equity gender Ferguson, Andrew feuds Feynman, Richard Fisher, Helen Fiske, Alan Flynn, James Fodor, Jerry folk psychology, see theory of mind Food and Drug Act (1958) Forster, E. M. Foucault, Michel Fox-Genovese, Elizabeth Frank, Robert Franklin, Benjamin Frazer, James George Freedman, Jonathan Freeman, Derek free-rider problem free will French Revolution frequency-dependent selection Freud, Sigmund Friedan, Betty Friedman, Milton Furchtgott-Roth, Diana Gabriel, Peter Gage, Phineas Galbraith, John Kenneth Galileo Galilei Galton, Francis game theory Gardner, Howard Garfunkel, Art Gauguin, Paul Gazzaniga, Michael Geary, David Geertz, Clifford Gell-Mann, Murray Gelman, Susan gender, see sex differences gender feminism gender gap generative grammar genes: antisocial acts and autism and brain and crime and emergenic traits and intelligence and language and mental illness and Neel and personality and “selfish” violence and see also behavioral genetics genetically modified foods genetic variation genius genome, human in denials of human nature evolution and human complexity and number of genes in variability in germ theory of disease Gestalt Ghiglieri, Michael Ghost in the Machine determinism and genetics and neural plasticity and neuroscience and radical science defense of responsibility and right-wing support of Gibran, Kahlil Gigerenzer, Gerd Gilbert, William Gilligan, Carol Gilmore, Gary Gingrich, Newt Gintis, Herbert glass ceiling Glendon, Mary Ann Glover, Jonathan Godfather, The Godwin, William Goffman, Erving Goldberg, Tiffany F.

pages: 382 words: 100,127

The Road to Somewhere: The Populist Revolt and the Future of Politics
by David Goodhart
Published 7 Jan 2017

We are doing so because of the financial incentives and administrative structures that governments themselves have created, not because of labour market demand, and the imbalance looks set to worsen yet further.’26 In the last few years apprenticeships have come back into fashion. In 2015 the government introduced a target of 3 million apprenticeships by 2020 and an apprenticeship levy on bigger employers is due to commence in April 2017. The hope is that this will counter the training free rider problem—the reluctance to invest in training for fear that expensively trained employees will leave for another job as soon as they can—and encourage more proper apprenticeships on the German model combining workplace and classroom education. And there has been a rapid increase in the number of pupils taking A level equivalent ‘BTEC’ vocational courses, thanks in part to the greater popularity of vocational qualifications at GCSE stage.

pages: 436 words: 98,538

The Upside of Inequality
by Edward Conard
Published 1 Sep 2016

See also government spending; tax policy investors and, 106–8 Forbes, Kristin, 82 foreign earned income exclusion, 251–52 France 99 percent’s share of GDP over time, 21, 21–22 productivity growth, 21, 23 test scores, 219, 220 Frank, Robert, 17, 79–82 Freddie Mac, 136, 258 free enterprise, 1, 136, 146–47, 200 free rider problem, 260 Friedman, Milton, 206 full employment, 39–40, 53, 117, 255 Gates, Bill, 12, 19, 66, 67, 78, 141, 165, 232, 233, 234 General Motors, 41, 125, 126 generation X, 247 geographical separation, 167–68 Germany, 120 government investment, 23, 147 incentives and taxes, 67, 74 99 percent’s share of GDP over time, 21, 21–22 productivity growth, 21, 23 savings, 38, 131, 255, 256 test scores, 219, 220 trade surplus, 1, 2, 116, 131, 256 Google, 11, 12, 19, 23, 29–30, 39, 46, 70–71, 76, 98, 99, 100, 123, 129, 130, 236, 249 Goolsbee, Austan, 3 Gordon, Robert, 25 Gore, Al, 201–2 government benefits, 47, 162, 204–10, 248 change in poverty by source of income, 208, 208–9 increase in transfer payments as a share of GDP, 106–7, 107 spending on income support, 204–5, 205 government-guaranteed debt, 53, 120, 132, 255, 262 government spending, 117–18, 142–45, 153–54, 258–59 expenditures and taxes by household type, 78–79, 106–7, 207, 261–62, 263 infrastructure investment, 144–48, 256, 258–59 Keynesian stimulus, 117–18, 125, 142–43 as percentage of GDP, 147, 147–48, 200–201 tax policy and, 259–64 U.S. spending on income support, 205 grade school education, 232–34 Great Depression, 41, 117–18, 127, 188 Great Divide, The (Stiglitz), 83n Great Gatsby curve, 185 Great Recession, 10, 49 Greece, 54, 70, 129 growth.

pages: 261 words: 103,244

Economists and the Powerful
by Norbert Haring , Norbert H. Ring and Niall Douglas
Published 30 Sep 2012

They ameliorate the cost of government bureaucracy by automating and streamlining it, rather than pretending to eliminate it in showy gestures while actually building an even bigger state. Over the past 15 years, European governments have been actively and successfully shrinking themselves – unlike the US government which has grown in proportion to the economy. They try to eliminate the “free rider” problem by mandating participation in endeavors beneﬁcial to society, and they try to diffuse professions such as doctors, lawyers and especially bankers from using their power to extract unfair, outsized economic rents from society. This is smart, evidence-based, practical government, rather than large or small ideological government.

pages: 414 words: 101,285

The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do About It
by Ian Goldin and Mike Mariathasan
Published 15 Mar 2014

Hammond and Laurette Dubé, 2012, “A Systems Science Perspective and Transdisciplinary Models for Food and Nutrition Security,” Proceedings of the National Academy of Sciences (PNAS) 109 (31): 12356–12363, image on 12357. Insofar as ecological stability is a public good, risk to the environment leads to negative externalities and is an example of the global commons problem. To manage these issues, we need to address the free rider problem. Most economists and environmental policy makers tend to agree that those responsible for environmental degradation should bear the costs (the “polluter pays” principle).3 The problem we face is thus essentially reduced to quantifying the contributions of individual risk components and pricing environmental damage.

pages: 471 words: 97,152

Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
by George A. Akerlof and Robert J. Shiller
Published 1 Jan 2009

Monetary Policy Forum Conference, Chicago Graduate School of Business, February 29. Groshen, Erica L. 1991. “Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?” Quarterly Journal of Economics 106(3):869–84. Grossman, Sanford J., and Oliver Hart. 1980. “Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation.” Bell Journal of Economics 11(1):41–64. Grossman, Sanford J., Angelo Melino, and Robert J. Shiller. 1987. “Estimating the Continuous-Time Consumption-Based Asset-Pricing Model.” Journal of Business and Economic Statistics 5(3):315–27. Hall, Robert E. 1978.

pages: 348 words: 102,438

Green and Prosperous Land: A Blueprint for Rescuing the British Countryside
by Dieter Helm
Published 7 Mar 2019

Stopping the damage by reducing grazing intensity would increase the economic value of the uplands, and if the subsidies went towards public goods instead, the economic prosperity of the hill farmers would improve. They are trapped in a system that keeps many of them both poor and marginal. Stopping overfishing, particularly of shellfish, around our coasts improves the value of the fisheries, and helps to solve the classic free-rider problem that the ‘tragedy of the commons’ reflects.2 It will increase fish stocks generally inside and outside the protected areas. Unregulated fishing is a disaster for the industry and the public and, as with the upland farmers, inshore-water fishers do not come off well. They are at the economic margins.

Rockonomics: A Backstage Tour of What the Music Industry Can Teach Us About Economics and Life
by Alan B. Krueger
Published 3 Jun 2019

For example, the Beatles had a legal agreement to split all income evenly, including income that each of the four earned individually, outside of the Beatles.15 After the band broke up, a divisive lawsuit by Paul McCartney was initiated to dissolve the legal partnership among the band members, as John, George, and Ringo had outvoted Paul. The contract could have spelled out terms once the band broke up, for continuing to split income earned individually after the breakup would have created a severe free rider problem. Why would Paul McCartney undertake the effort and trouble of touring if three-quarters of his earnings would go to John, George, and Ringo? And the same question applied to each of the others. Jason Van Dyke, who performed with the two founding members of the Lumineers before they moved from New Jersey to Denver in 2009, has said, “I know one of the things that we didn’t really do a good job of is writing up an agreement and coming up with that in a really clear manner.”16 Once the band struck it big with “Ho Hey,” Van Dyke sued the Lumineers in 2014 for denying him equal partnership, copyright, and co-authorship of songs.

pages: 330 words: 99,044

Reimagining Capitalism in a World on Fire
by Rebecca Henderson
Published 27 Apr 2020

Many firms would like to see an end to corruption or an increase in the quality of local legal institutions, but most cannot make progress against either goal on their own. Hiro himself faces a variant of this issue. He believes that averting the worst effects of climate change is very much in the best interest of his beneficiaries. But he faces several free-rider problems in trying to change behavior. The first is that it may not be profitable for individual firms to reduce fossil fuel use. Should Hiro instruct his asset managers to force them to? The second is that even if he has the power to force Japanese firms to go green, it seems wildly unlikely that he has the power to force every firm in the world to change.

pages: 416 words: 106,582

This Will Make You Smarter: 150 New Scientific Concepts to Improve Your Thinking
by John Brockman
Published 14 Feb 2012

Any human or animal act that appears altruistic has been explained away as selfishness in disguise, linked ultimately to kin selection (genes help copies of themselves) or reciprocal altruism (agents help only to the extent that they can expect a positive return, including to their reputations). But in the last few years there’s been a growing acceptance of the idea that “Life is a self-replicating hierarchy of levels” and natural selection operates on multiple levels simultaneously, as Bert Hölldobler and E. O. Wilson put it in their recent book, The Superorganism. Whenever the free-rider problem is solved at one level of the hierarchy, such that individual agents can link their fortunes and live or die as a group, a superorganism is formed. Such “major transitions” are rare in the history of life, but when they have happened, the resulting superorganisms have been wildly successful.

Smart Mobs: The Next Social Revolution
by Howard Rheingold
Published 24 Dec 2011

Many of these startups succeeded in attracting communities of experts who competed to make the enterprise more valuable by contributing their knowledge. The volunteer mavens on everything from hummingbirds to Sumerian antiquities took their payment in pennies and prestige. The opposite of the free-rider problem emerged in a number of forms—hordes of compulsive contributors. The decades-old friendly competitions to provide answers online became a commercial enterprise toward the end of the dotcom era when expert opinion, advice, and recommendation Web sites such as Epinions, Askme.com, Experts-Exchange, Allexperts.com, ExpertCentral.com, and Abuzz.com launched.

Human Frontiers: The Future of Big Ideas in an Age of Small Thinking
by Michael Bhaskar
Published 2 Nov 2021

Another study suggests that 57.7 per cent of the gain accrues to society rather than as rent to the company (which sees only 13.6 per cent of the gain).17 It was famously not Xerox that profited most from its legendary PARC lab, but Steve Jobs and Apple, who saw its graphical user interface on a tour and went on to launch it as the benchmark in useable software. Even in the very best of times knowledge is underproduced and invested in thanks to this free rider problem. Moreover, in the heyday of Bell Labs corporate profits and executive pay were highly taxed; you might as well spend on R&D. Today the reverse is true. Why put money into R&D when it can be safely funnelled back to shareholders or the C-suite bonus pool? This all has real consequences: the decline of the corporate research lab has meant science is removed from the economic front line.

pages: 393 words: 115,217

Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries
by Safi Bahcall
Published 19 Mar 2019

If your project can move earnings by no more than a tiny fraction of a percent, how does a company-earnings bonus motivate you? You might as well put your energy into twiddling your thumbs and fooling your boss into thinking you are indispensable while enjoying the free ride if earnings go up. (Economists call a similar issue in the use of public goods the “free-rider problem.”) Bring a gun to a knife fight Money spent on company-earnings bonuses would be much better spent on the people and processes needed to help managers think through the subtleties of incentives. Larger HR groups often have a compensation specialist. But those roles tend to be filled by rubber-stampers who apply cut-and-paste formulas.

pages: 426 words: 118,913

Green Philosophy: How to Think Seriously About the Planet
by Roger Scruton
Published 30 Apr 2014

S., ref1 Emerson, Ralph Waldo, ref1, ref2, ref3 Empson, Sir William, ref1 endangered species legislation, ref1 endowment effect, ref1n England, ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9 English Law, ref1, ref2, ref3 Enlightenment, ref1, ref2, ref3 enterprise liability, ref1 entropy, ref1, ref2 Environmental Protection Agency (US), ref1, ref2, ref3, ref4, ref5, ref6, ref7 Epictetus, ref1 equity, ref1, ref2, ref3, ref4, ref5, ref6f Esterson, Aaron, ref1n Etherington, John, ref1 ethics, ref1, ref2, ref3, ref4 European Court of Human Rights, ref1, ref2 European Court of Justice, ref1, ref2 European Union, ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9, ref10, ref11, ref12, ref13, ref14, ref15, ref16, ref17, ref18 Evelyn, John, ref1, ref2, ref3, ref4 evolutionary psychology, ref1, ref2 externalising costs, ref1f, ref2, ref3, ref4, ref5, ref6f, ref7 externalities, ref1, ref2, ref3, ref4 Exxon-Valdez case, ref1, ref2 Factory Acts (UK), ref1 factory labour, ref1 Fairlie, Simon, ref1, ref2n, ref3 Family Farmers Association (UK), ref1 Fannie Mae and Freddie Mac, ref1 fatalism, ref1 Fattal, Antoine, ref1n Federal Emergency Management Agency, ref1 Feisbach, Murray, ref1n Fergusson, Adam, ref1n fisheries, ref1, ref2 Fleming, James Rodger, ref1n Food and Drug Administration (US), ref1 Food Family Farming Foundation (US), ref1 foot and mouth disease, ref1 Foreman, David, ref1 Forestry Commission (UK), ref1 forests, ref1, ref2, ref3, ref4 Forster, E. M., ref1 Foucault, Michel, ref1, ref2n Fox, Warwick, ref1 Frakes, L. A., ref1n France, ref1, ref2, ref3, ref4, ref5 Frankfurt School, ref1 free enterprise, ref1, ref2, ref3, ref4, ref5 free rider problem, ref1, ref2, ref3 French Revolution, ref1, ref2, ref3, ref4, ref5 Freud, Sigmund, ref1 Friedman, Milton, ref1n Friedman, Rose, ref1n Friedman, Thomas, ref1n Friendly Societies (England), ref1 Friends of the Earth, ref1, ref2, ref3 friendship, ref1 Fukushima Daiichi, ref1 functionalism in architecture, ref1 Furet, François, ref1n Gaia hypothesis, ref1, ref2, ref3 Game Conservancy Association (UK), ref1, ref2 game theory, ref1, ref2 Garden City Association, ref1 Gardiner, Rolf, ref1 Garnaut, Ross, ref1n Garreau, Joel, ref1 Gaskell, Elizabeth Cleghorn (Mrs Gaskell), ref1 Geertz, Clifford, ref1 Geo-engineering, ref1, ref2, ref3, ref4, ref5, ref6, ref7 George III, King, ref1 Germany, ref1, ref2, ref3, ref4, ref5, ref6 Gęścińska, Alicja, ref1 Giddens, Tony, Lord, ref1, ref2 Gierke, Otto Friedrich von, ref1n Ginsburg, Douglas H., ref1n, ref2n Giono, Jean, ref1, ref2 Girard, René, ref1n Girondins, ref1 globalization, ref1, ref2 GM crops, ref1, ref2, ref3 goals vs. side-constraints, ref1, ref2, ref3 Goldblatt, David, ref1n Goldsmith, Zac, ref1n, ref2, ref3n Goodman, Ellen, ref1n Goodstein, Eban S., ref1n, ref2n Gore, Al, ref1, ref2, ref3, ref4 Gosselin, Peter, ref1n Graham, Jesse, ref1n, ref2n Graham, John D., ref1n Gray, John, ref1n, ref2n, ref3, ref4 Greece, ref1, ref2 green belts, ref1 Green Party, UK, ref1 Green, Kenneth P., ref1, ref2, ref3n, ref4n Greenpeace, ref1, ref2, ref3, ref4n, ref5, ref6 Greenwood myth, The, ref1 growth, ref1, ref2 Grünberg, Slawomir, ref1 Guild of St George, ref1 Hahn, Robert W., ref1n Haidt, Jonathan, ref1n, ref2n Halliday, Jon, ref1n Hansen, James, ref1, ref2, ref3 Hardin, Garrett, ref1n, ref2, ref3n Harvey, Graham, ref1n, ref2, ref3 Hayek, Friedrich A., ref1n, ref2 Hayward, Stephen, ref1, ref2n, ref3n, ref4n Heal, G., ref1n health and safety, ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8 Heaney, Seamus, ref1 Hegel, Gottfried Wilhelm Friedrich, ref1, ref2, ref3n, ref4n, ref5, ref6, ref7, ref8 Heidegger, Martin, ref1, ref2, ref3, ref4, ref5, ref6 Heimat, ref1, ref2, ref3, ref4, ref5 Heimatgefühl, ref1, ref2, ref3, ref4, ref5 Held, David, ref1n Helm, Dieter, ref1n, ref2n, ref3n, ref4n, ref5n Hepburn, Cameron, ref1n, ref2n, ref3n heresy, ref1 Hesiod, ref1 hierarchy, ref1, ref2 High Wycombe Society, ref1 Hill, Octavia, ref1 Hinduism, ref1, ref2 Hirsch, Fred, ref1 Hirst, Paul, ref1 Hitler, Adolf, ref1, ref2 Hobbes, Thomas, ref1n, ref2, ref3 ‘hockey-stick’ graph, ref1n Hoffer, Eric, ref1n Hoffmann, Leonard, Lord, ref1n Hogarth, William, ref1 Hölderlin, Johann Christian Friedrich, ref1n, ref2 Holland, ref1, ref2 Hollander, Jack M., ref1n, ref2n, ref3n Holling, C.

pages: 538 words: 121,670

Republic, Lost: How Money Corrupts Congress--And a Plan to Stop It
by Lawrence Lessig
Published 4 Oct 2011

Indeed, if there were only one such entity with that interest, we could calculate quite precisely how much they’d be willing to spend to avoid the reform: whatever the status quo was worth; they’d be willing to spend up to (the net present value of) that amount to avoid any change.11 As Kenneth Crawford put it during the New Deal, “Their bird is in the hand and they battle to keep it.”12 So, for example, imagine there were only one oil company in the nation: if the net present value of being allowed to ignore the cost of carbon in the products that oil company sold were $100 billion, in principle, that oil company should be willing to spend $100 billion to avoid being forced to internalize the cost of carbon in the products it sold. In a system where money can influence politics, it is therefore not hard to understand why fundamental reform is not possible. The story gets more complicated if there is more than one entity thatintwhy benefits from the status quo. Then each faces what economists call a “free-rider problem.” It may be good for each that the status quo is preserved, but it is better for each if the status quo can be preserved without that interest having to pay to preserve it. Each, in other words, would like to “free-ride” on the spending of the others to preserve the status quo. The interests thus don’t naturally want to pay to avoid the reform.

pages: 394 words: 124,743

Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry
by Steven Rattner
Published 19 Sep 2010

This meant getting investors to exchange at least $18 billion in bonds for much riskier GM stock. There was no way for GM to force them to do so: under the usual bond indentures, a lender's entitlement to interest and principal cannot be abridged without its consent. That meant GM needed volunteers. But this raised a classic "free rider" problem, as economists call it. Why would any bondholder agree to have its investment dramatically reduced when, if other investors accepted the offer, it could keep its full entitlement? No company had ever achieved such a sizable debt reduction involving so many bond issues and thousands of bondholders outside of bankruptcy.

pages: 476 words: 125,219

Digital Disconnect: How Capitalism Is Turning the Internet Against Democracy
by Robert W. McChesney
Published 5 Mar 2013

See journalistic firewall Flickr, 138 Ford Foundation, 279n143 Foreign Intelligence Surveillance Act (FISA), 164 foreign policy, 236n53 Fortune lists, 113, 121, 124, 131, 256n134 foundation grants, 198–99, 279n143 foundations, 199–200 Framework for Global Electronic Commerce, 106 France, 206, 280n155 franchise. See right to vote Franklin, Benjamin, 57 Freedom House, 207–8, 210 freedom of the press, 203–11, 280n158 freelance reporters, 188, 192, 193 Free Press (group), 93–95, 168, 219 “free rider” problem, 52 Friedman, David, 126 Friedman, Milton, 28, 40–41, 80, 171, 263n81 Frito-Lay, 149 FTC. See Federal Trade Commission (FTC) Galbraith, James K., 60, 241–42n78 Galbraith, John Kenneth, 18 Gannett, 186 Gary, Indiana, 224, 225 GateHouse Media, 177, 192 Gates, Bill, 27–28, 108, 133, 135 Gates, Henry Louis, Jr., 108 Genachowski, Julius, 116 General Electric, 120, 124 General Motors, 32 The General Theory of Employment, Interest, and Money (Keynes), 47 Germany, 35, 206 Gilder, George: Life after Television, xi–xii Gini index, 35 Gitlin, Todd, 214 Gmail, 138 The Godfather, Part II, 91 Google, 28, 131, 132, 137–40 acquisitions, 134, 138 advertising, 102, 148, 149, 190 cash on hand, 137 cloud computing, 136 copyright issues, 126, 127 e-mail service, 138 Europe, 143 Facebook relations, 261n48 FTC relations, 142, 143, 153 lobbying, 144 market share, 131 monopolistic practices, 143 Net neutrality views, 119, 120 Obama relations, 116 open-source software use, 108 privacy policy, 151, 152, 153 proprietary platforms, 135 SOPA opposition, 92 tax evasion, 145 video platforms, 1, 128, 128–29, 138 Wikipedia synergy, 108 See also Android “Googledom,” 144 Google Earth, 100–101 Google Fiber network, 139 Google+, 135 Google search, 6, 131, 132, 136, 142, 143, 157, 190 advertising, 102, 148 copyright issues, 127 Journatic attempt to confound, 192 Google Translate, 277n104 Gore, Al, 98–99, 106, 116–17, 250n2 government classification of documents, 160, 169–70 government policy, 64, 91–95, 98–120, 142–43, 152–54, 162, 166–68, 263n81 author-recommended reforms, 211–14, 216–17 corruption of process, 217 role of radical criticism, 284n39 See also advertising regulation; deregulation; economic regulation; media policy; “monopoly licenses”; taxation; U.S.

pages: 385 words: 123,168

Bullshit Jobs: A Theory
by David Graeber
Published 14 May 2018

The key to UBI is the unconditional element, which allows for a massive reduction of the role of government intrusion in citizens’ lives. These supposedly “modified” or “improved” versions either will not do this, or will have the opposite effect. 22. Obviously, moral philosophy tends to assume that the “free rider” problem is a fundamental question of social justice, outweighing considerations of human freedom, and therefore usually concludes that it would be justifiable to set up a system of surveillance and coercion so as to ensure that not even a small number of people live off of others’ work (unless they’re rich, in which case that’s usually somehow totally okay).

pages: 436 words: 76

Culture and Prosperity: The Truth About Markets - Why Some Nations Are Rich but Most Remain Poor
by John Kay
Published 24 May 2004

Gregory, T. 1962. Ernest Oppenheimer and the Economic Development of Southern Africa. Cape Town: Oxford University Press. Grigg, D. 1992. The Transformation ofAgriculture in the West. Oxford: Basil Blackwell. Groves, T., and J. 0. Ledyard. 1977. "Optimal Allocation of Public Goods: A Solution to the Free Rider Problem." Econometrica 45: 783-809. ---. 1980. "The Existence of Efficient and Inventive Compatible Equilibria with Public Goods. Econometrica 48. Haigh, J. 1999. Taking Chances: Winning with Probability. Oxford: Oxford University Press. Hair, P. E. H. 1971. "Deaths from Violence in Britain: A Tentative Survey."

pages: 497 words: 143,175

Pivotal Decade: How the United States Traded Factories for Finance in the Seventies
by Judith Stein
Published 30 Apr 2010

Subsequently, twenty states, mainly in the South and Sunbelt, outlawed the union shop and other forms of mandatory union membership. A union shop clause did not require membership in order for an individual to obtain a job, but once a union was certified, workers would have to join. It was a solution to the free-rider problem, where workers benefited from a contract without contributing to the support of the union that had negotiated it. The new labor law would repeal 14b, making union shops once again possible in areas where they had been outlawed. The second reform would certify unions without an election. Canada had such a law, which recognized a union if it produced signed cards from 55 percent of the workers.

pages: 742 words: 137,937

The Future of the Professions: How Technology Will Transform the Work of Human Experts
by Richard Susskind and Daniel Susskind
Published 24 Aug 2015

Because in today’s knowledge economy, the most valuable resources—information and knowledge—are themselves a public good, and the best way to develop and maximise this good is through millions of networked people pooling that knowledge and working together to create new products, ideas, and solutions.39 And again: Once you open up the possibility that people are not only using the Web as a platform to produce their own individual content, but also to pool their efforts, knowledge and resources without expecting any sort of payment or compensation, the possibilities for what they can create are astounding.40 This evidence goes some way to addressing the ‘free-rider’ problem. If people were to behave in the selfless way that Benkler describes, then they would be less likely to try to take advantage of each other. A prime illustration here is Wikipedia, which attracts a great deal of donations and effort from its users, without threatening exclusivity by making access conditional on payment.

pages: 448 words: 142,946

Sacred Economics: Money, Gift, and Society in the Age of Transition
by Charles Eisenstein
Published 11 Jul 2011

I should acknowledge here that pure Marxist theory does not see state ownership as the final stage of communism, but says that the state will eventually wither away, and, presumably, the concept of property along with it. 2. The tragedy of the commons is a pseudo-historical story meant to illustrate the free-rider problem. In it, the meadow in a village commons was stripped bare of vegetation, because it was to each villager’s advantage to graze as many sheep there as possible. When everyone pursued their own advantage, the result was overgrazing and losses for all. 3. The unfairness and economic inefficiency of economic rents were recognized by classical economists as well and come under criticism in the writings of Adam Smith, David Ricardo, and John Stuart Mill.

Making Globalization Work
by Joseph E. Stiglitz
Published 16 Sep 2006

Removes Itself from Industrial Pedestal,” New York Times, May 30, 1999, sect. 3, p. 4. 9.This is an example of what is sometimes called the principle of subsidiarity—issues should be addressed at the lowest level at which effective action can be undertaken. 10.Just as, without national governments, there will be underprovision of national public goods. Economists refer to this as the “free rider problem”—since everybody benefits (and it may be impossible or costly to exclude anyone from the benefits), there is a tendency for each to free ride on the efforts of others. 11.In its spring 2006 meeting, the IMF’s managing director proposed modest changes in voting rights in this direction, but, not surprisingly, such proposals encountered resistance from some of those whose relative voting rights would be reduced. 12.See the discussion in chapter 3. 13.We noted, however, in chapter 3, that the current system of trade sanctions is far more effective in inducing responses by developing countries to violations in WTO rules against developed countries than the converse. 14.See Table 1 of Robert C.

pages: 444 words: 130,646

Twitter and Tear Gas: The Power and Fragility of Networked Protest
by Zeynep Tufekci
Published 14 May 2017

Christian, Sandvig, Kevin Hamilton, Karrie Karahalios, and Cedric Langbort, “Automation, Algorithms, and Politics; When the Algorithm Itself Is a Racist: Diagnosing Ethical Harm in the Basic Components of Software,” International Journal of Communication 10 (2016): 19. 33. Zeynep Tufekci, “The Medium and the Movement: Digital Tools, Social Movement Politics, and the End of the Free Rider Problem,” Policy and Internet 6, no. 2 (2014): 202–8, http://doi.org/10.1002/1944-2866.POI362. 34. M. Eslami et al., “‘I Always Assumed That I Wasn’t Really That Close to [Her]’: Reasoning about Invisible Algorithms in News Feeds,” Conference on Human Factors in Computing Systems—Proceedings (April 2015): 153–62. 35.

pages: 586 words: 159,901

Wall Street: How It Works And for Whom
by Doug Henwood
Published 30 Aug 1998

Greider, William (1987). Secrets of the Temple (New York: Simon and Schuster). Griffith-Jones, Stephany (1981). The Role of Finance in the Transition to Socialism (London: Frances Pinter Ltd., and Totowa, N.J.: Allanheld, Osmun & Co.). Grossman, Sanford J., and Oliver D. Hart (1980). "Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation," Bell Journal of Economics 11, pp. 42-64. Grossman, Sanford J., and Joseph E. Stiglitz (1980). "On the Impossibility of Informationally Efficient Markets," American Economic ReviewlO, pp. 393-408. Gurley, John, and Edward Shaw (1955). "Financial Aspects of Economic Development," American Economic Review A5 (September), pp. 515-538.

pages: 409 words: 145,128

Fighting Traffic: The Dawn of the Motor Age in the American City
by Peter D. Norton
Published 15 Jan 2008

Hoover declared that the traffic conference marked “a new conception of government,” a departure even from his own early work at Commerce.109 The Gasoline Tax For practical reasons, streets have been a public responsibility. Users could not be charged for each use, and the street was the original home of the free-rider problem. Although merchants’ associations sometimes improved and even built streets, the main builders were public agencies funded through property assessments, often supplemented by bond issues. In the 1920s a new kind of charge gave some a reason to hope that users might pay in proportion to their use.

pages: 524 words: 155,947

More: The 10,000-Year Rise of the World Economy
by Philip Coggan
Published 6 Feb 2020

Given what we know about the impact of the Black Death in the 14th century, or the devastating effect on the Americas of diseases brought by Europeans, many settlements must have been wiped out. Between 10,000BCE and 5000BCE, the human population may only have edged up from 4 to 5 million.18 Second, natural disasters (particularly floods) must have destroyed some villages. Third, early settlements must have faced what economists call the “free rider” problem; it takes a lot of effort to grow the crops but less effort to steal them. Farmers were at risk of other groups taking their produce. The idea of the “noble savage”, of peace-loving tribes at home with nature, is quite persistent. But observations of modern hunter-gatherer tribes find that violent raids on their neighbours are quite common.

pages: 524 words: 146,798

Anarchy State and Utopia
by Robert Nozick
Published 15 Mar 1974

People who work to institute a compulsory scheme could devote their energies to establishing a coordinated start-up. This task is made easier by the fact that people want not only that some evil be reduced or eliminated; they also want to help in this and to be a part of what produces the alleviation of the problem. This desire diminishes the “free rider” problem. Let us now turn to why the person’s contribution (of the same amount of money as under the compulsory scheme) might “cost” him more. He might feel that only “suckers” or “saps” make special sacrifices when others are “getting away” with not making any; or he might be upset by the worsening of his position relative to those who don’t contribute; or this worsening of relative position might put him in a worse competitive position (relative to these others) to gain something he wants.

pages: 604 words: 161,455

The Moral Animal: Evolutionary Psychology and Everyday Life
by Robert Wright
Published 1 Jan 1994

But sometimes, at least, that’s a questionable description. What can we say about the Hawaiian chief who rewarded those who helped build a dam with parcels of land watered by the resulting irrigation? Well, first of all, he got the dam built. Second, he overcame an impediment to non-zero-sum gain, the free rider problem; he made sure you couldn’t benefit from the project unless you helped pay for it.† Given the good done by chiefs, it’s dubious to assume, a some archaeologists have, that the ornate Polynesian “grand houses, assembly places, and temple platforms” signify wealth being commandeered toward “the apex of the socio-political pyramid.”

Nonzero: The Logic of Human Destiny
by Robert Wright
Published 28 Dec 2010

pages: 547 words: 173,909

Deep Utopia: Life and Meaning in a Solved World
by Nick Bostrom
Published 26 Mar 2024

Then the meaning of all these people’s lives would be the same not only in the sense that they have parallel purposes, but in the stronger sense that they are seeking to accomplish exactly the same outcome, for the same reason, by engaging in the same type of activity. This kind of most strongly shared meaning based on an instrumental reason requires conditions to be met that may be unlikely to obtain among larger groups of human beings. In a large group, there is a free-rider problem: each person’s contribution to the shared mission would typically make only a small difference to the likelihood that the mission is achieved. This comparative impotence of individual contributors reduces the strength of the instrumental reason that each one of them has to devote their life to the shared mission.

pages: 687 words: 189,243

A Culture of Growth: The Origins of the Modern Economy
by Joel Mokyr
Published 8 Jan 2016

Public-mindedness (or asabiya in Ibn Khaldun’s famous formulation), is a third cultural element related to cooperation: the willingness to avoid free-riding and contribute to a collective good despite the incentive that each individual has to shirk. Ideology is a mechanism by which society overcomes free-rider problems, as North (1981, p. 31) pointed out. Public-mindedness includes the willingness to help punish defectors, even if that comes at a personal price. Such punishment is much like contributing to a public good, because it permits the functioning of a private-order institution that makes exchange happen by minimizing opportunistic behavior.

pages: 631 words: 177,227

The Secret of Our Success: How Culture Is Driving Human Evolution, Domesticating Our Species, and Making Us Smarter
by Joseph Henrich
Published 27 Oct 2015

Anthropological Quarterly 44 (3):157–172. Paladino, M. P., M. Mazzurega, F. Pavani, and T. W. Schubert. 2010. “Synchronous multisensory stimulation blurs self-other boundaries.” Psychological Science 21 (9):1202–1207. Panchanathan, K., and R. Boyd. 2004. “Indirect reciprocity can stabilize cooperation without the second-order free rider problem.” Nature 432:499–502. Panger, M. A., A. S. Brooks, B. G. Richmond, and B. Wood. 2002. “Older than the Oldowan? Rethinking the emergence of hominin tool use.” Evolutionary Anthropology 11 (6):235–245. Pashos, A. 2000. “Does paternal uncertainty explain discriminative grandparental solicitude?

pages: 619 words: 177,548

Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity
by Daron Acemoglu and Simon Johnson
Published 15 May 2023

Such action is costly for most people, who will have to spend time to become informed, to attend meetings, to change their consumption habits, and to occasionally go out and protest. These costs multiply when there is a counterpush from companies and sometimes, even worse, from state security services. In authoritarian and even semi-democratic regimes, authorities can clamp down on protests and civil-society organizations. These dynamics produce the “free-rider” problem: people who share the same values may nevertheless be tempted not to take part in collective action in order to avoid paying the costs. This tendency of course intensifies when punishments against dissidents increase. For example, recent research on Hong Kong protests shows that when pro-democracy university students expect others to take part in rallies against antidemocratic measures, they themselves become less likely to join the protests, free riding on others’ efforts.

pages: 740 words: 217,139

The Origins of Political Order: From Prehuman Times to the French Revolution
by Francis Fukuyama
Published 11 Apr 2011

Why don’t they cheat or steal when the likelihood of punishment is negligible compared to the benefits? … Without an explicit theory of ideology or, more generally, of the sociology of knowledge there are immense gaps in our ability to account for either current allocation of resources or historical change. In addition to being unable to resolve the fundamental dilemma of the free rider problem we cannot explain the enormous investment that every society makes in legitimacy.” Structure and Change in Economic History (New York: Norton, 1981), pp. 46–47. 31 Trivers, “Reciprocal Altruism.” 32 On this general topic, see Francis Fukuyama, The End of History and the Last Man (New York: Free Press, 1992), chap. 13–17. 33 Robert H.

pages: 796 words: 223,275

The WEIRDest People in the World: How the West Became Psychologically Peculiar and Particularly Prosperous
by Joseph Henrich
Published 7 Sep 2020

Silver begins his Economic Structures of Antiquity (1995, p. 5) with the central role of the gods in economic exchange: “The economic role of the gods found important expression in their function as protectors of honest business practices.” The gods not only punished oath breakers themselves but also those who failed to report underhanded business practices and deceitful sales techniques. This helps solve what’s called the “second-order free rider problem.” 38. Rives, 2006, pp. 50–52, 105–131. 39. Rauh, 1993. The Pausanias quotation is from Kemezis and Maher (2015, p. 317). 40. McNeill, 1991; O’Grady, 2013; Rives, 2006. Several universalizing religions developed the notion of a “man-god,” a manifestation of the divine who could provide a powerful role model for aspirants (e.g., Jesus, Gautama Buddha, etc.).

pages: 903 words: 235,753

The Stack: On Software and Sovereignty
by Benjamin H. Bratton
Published 19 Feb 2016

The sacralization of individuated privacy through encryption might also seem to guarantee purity of essence and the sovereignty of the atomized User, but it anonymizes some of the key variables in the larger human-technological chain of association, activity, and accountability, also withdrawing them from reasonable adjudication. Instead of containing the impacts of an exchange within the closed circle of those transacting, it instead makes some agents invisible to the trace routing of algorithmic governance altogether, thereby automating the free-rider problem, as well as making everything that transaction externalizes (both benign and pernicious) invisible even to the Users that spawn them. Out of sight, out of mind. This kind of tactical anonymization can both overinflate the end User's sense of commanding authority over all interactions (an inflation that is both technological and psychological) and withdraws the User from forums of accountability for the partial costs of his partial agency.

Global Catastrophic Risks
by Nick Bostrom and Milan M. Cirkovic
Published 2 Jul 2008

Posner notes that governmental action to reduce global catastrophic risk is often impeded by the short decision horizons of politicians with their limited terms of office and the many competing demands on their attention. Furthermore, mitigation of global catastrophic risks is often costly and can create a free-rider problem. Smaller and poorer nations may drag their heels in the hope of taking a free ride on larger and richer countries. The more resourceful countries, in turn, may hold back because of reluctance to reward the free riders. Posner also looks at several specific cases, including tsunamis, asteroid impacts, bioterrorism, accelerator experiments, and global warming, and considers some of the implications for public policy posed by these risks.

pages: 1,164 words: 309,327

Trading and Exchanges: Market Microstructure for Practitioners
by Larry Harris
Published 2 Jan 2003

The liquidity that specialists provide benefits all traders, regardless of whether they normally trade at the specialists’ exchange or elsewhere. The benefactors of the specialist system, however, are only those traders who trade where the specialists trade. * * * ▶ Nasdaq’s Partial Solution to the Free Rider Problem To discourage its dealers from hiding when volatility rises, the Nasdaq Stock Market requires that they wait 20 trading days before they resume trading a stock in which they stopped making a market. Although the rule does not compel dealers to offer aggressively priced quotes, it does keep them attentive when markets are volatile. ◀ * * * This mismatch is problematic for specialists and for their exchanges.

pages: 1,104 words: 302,176

The Rise and Fall of American Growth: The U.S. Standard of Living Since the Civil War (The Princeton Economic History of the Western World)
by Robert J. Gordon
Published 12 Jan 2016

But these European cars were almost useless on American roads, which were described in 1903 as “simply two deep ruts, with a stony ridge in the middle on which the car bottom will drag.”100 The first few years of the twentieth century saw political gridlock about paving rural roads, in part because of the free-rider problem. Residents of one county worried that if their county paved its roads, residents of an adjacent county would take advantage of them without paving its own.101 The attire of the average country automobile driver reflected the condition of the roads: “Sheets and hats were worn and travel bags were wrapped in blankets to keep out the dust … extreme cold, snow, rain, and dryness made travel unpleasant as well as unpredictable.

pages: 892 words: 91,000

Valuation: Measuring and Managing the Value of Companies
by Tim Koller , McKinsey , Company Inc. , Marc Goedhart , David Wessels , Barbara Schwimmer and Franziska Manoury
Published 16 Aug 2015

While there is substantial value to be created from removing excess capacity, the bulk of the value nevertheless often accrues to the seller’s shareholders, not the buyer’s. In addition, all the other competitors in the industry may benefit from the capacity reduction without having to take any action of their own (the free-rider problem). Accelerate Market Access for Target’s (or Buyer’s) Products Often, relatively small companies with innovative products have difficulty accessing the entire potential market for their products. For instance, small pharmaceutical companies typically lack the large sales forces required to access the many doctors they need to see in order to promote their products.

pages: 1,106 words: 335,322

Titan: The Life of John D. Rockefeller, Sr.
by Ron Chernow
Published 1 Jan 1997

During the following months, in a divide-and-conquer policy, Rockefeller tried to isolate the Oil Creek refiners by successfully recruiting into his Pittsburgh Plan refiners from the other major centers. But before long, this cartel was bedeviled by cheaters exceeding their quotas. It also grappled with what economists call the “free rider” problem—that is, opportunistic refiners stayed outside the plan and enjoyed the higher prices it produced without being bound by its production limits. As Rockefeller later said in a comparable situation, “These men who claimed that they had been ‘crushed’ and ‘ruined’ by the Standard Oil Company were existing under its shelter and protection.”3 And he was besieged by problems closer to home.

Principles of Corporate Finance
by Richard A. Brealey , Stewart C. Myers and Franklin Allen
Published 15 Feb 2014

Forward interest rate Interest rate fixed today on a loan to be made at some future date (cf. spot interest rate). Forward rate agreement (FRA) Agreement to borrow or lend at a specified future date at an interest rate that is fixed today. Forward price Agreed-upon price for a forward contract. FRA Forward rate agreement. Free cash flow Cash not required for operations or for reinvestment. Free-rider problem The temptation not to incur the costs of participating in a decision when one’s influence on that decision is small. FRN Floating-rate note. Full-payout lease Financial lease. Full-service lease (rental lease) Lease in which the lessor promises to maintain and insure the equipment (cf. net lease).