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Collective Action Theory
The collective action theory was first published by Mancur Olson in 1965. Olson argues that any group of individuals attempting to provide a public good has difficulty doing so efficiently. On the one hand individuals have incentives to " free-ride" on the efforts of others in certain groups and on the other hand the size of a group is of high importance and difficult to optimally determine. Basic theory of groups Purpose of organizations The primary function of an organization is the furtherance of common interests of groups of individuals. In general, an organization will fail if it does not further the common interest of its members. If such a common interest exists, any unorganized action by an individual will either fail in advancing the common interest at all or will not be able to advance the interest in a suitable way. However, each member of the organization has his or her own individual interests which differ from the interests of other members. Public goods ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mancur Olson
Mançur Lloyd Olson Jr. (; January 22, 1932 – February 19, 1998) was an American economist and political scientist who taught at the University of Maryland, College Park. His most influential contributions were in institutional economics, and in the role which private property, taxation, public goods, collective action, and contract rights play in economic development. Early life and education Olson was born on January 22, 1932, in Grand Forks, North Dakota, to a family of Norwegian immigrants. He grew up on a farm near Buxton, North Dakota, next to the state border with Climax, Minnesota. Olson claimed that his given name, Mançur, was common throughout Scandinavian-immigrant communities in North America and was a variation of the Arabic name Mansoor. Olson graduated from North Dakota State University in 1954 and was a Rhodes Scholar at University College, Oxford until 1956, before earning a PhD in economics from Harvard in 1963. He also served in the U.S. Air Force for two ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Free Rider Problem
In the social sciences, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods (such as public roads or public library), or services of a communal nature do not pay for them or under-pay. Free riders are a problem because while not paying for the good (either directly through fees or tolls or indirectly through taxes), they may continue to access or consume it. Thus, the good may be under-produced, overused or degraded. Additionally, it has been shown that despite evidence that people tend to be cooperative by nature, the presence of free-riders cause this prosocial behaviour to deteriorate, perpetuating the free-rider problem. The free-rider problem in social science is the question of how to limit free riding and its negative effects in these situations. Such an example is the free-rider problem of when property rights are not clearly defined and imposed. The free-rider problem is common with public goods which are n ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Good (economics)
In economics, a public good (also referred to as a social good or collective good)Oakland, W. H. (1987). Theory of public goods. In Handbook of public economics (Vol. 2, pp. 485-535). Elsevier. is a good that is both non-excludable and non-rivalrous. For such goods, users cannot be barred from accessing or using them for failing to pay for them. Also, use by one person neither prevents access of other people nor does it reduce availability to others. Therefore, the good can be used simultaneously by more than one person. This is in contrast to a common good, such as wild fish stocks in the ocean, which is non-excludable but rivalrous to a certain degree. If too many fish were harvested, the stocks would deplete, limiting the access of fish for others. A public good must be valuable to more than one user, otherwise, the fact that it can be used simultaneously by more than one person would be economically irrelevant. Capital goods may be used to produce public goods or services th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Homo Oeconomicus
The term ''Homo economicus'', or economic man, is the portrayal of humans as agents who are consistently rational and narrowly self-interested, and who pursue their subjectively defined ends optimally. It is a word play on ''Homo sapiens'', used in some economic theories and in pedagogy. In game theory, ''Homo economicus'' is often modelled through the assumption of perfect rationality. It assumes that agents always act in a way that maximize utility as a consumer and profit as a producer, and are capable of arbitrarily complex deductions towards that end. They will always be capable of thinking through all possible outcomes and choosing that course of action which will result in the best possible result. The rationality implied in ''Homo economicus'' does not restrict what sort of preferences are admissible. Only naive applications of the ''Homo economicus'' model assume that agents know what is best for their long-term physical and mental health. For example, an agent' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Transaction Cost
In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market. Oliver E. Williamson defines transaction costs as the costs of running an economic system of companies, and unlike production costs, decision-makers determine strategies of companies by measuring transaction costs and production costs. Transaction costs are the total costs of making a transaction, including the cost of planning, deciding, changing plans, resolving disputes, and after-sales. Therefore, the transaction cost is one of the most significant factors in business operation and management. Oliver E. Williamson's ''Transaction Cost Economics'' popularized the concept of transaction costs. Douglass C. North argues that institutions, understood as the set of rules in a society, are key in the determination of transaction costs. In this sense, institutions that facilitate low transaction costs, boost economic growth.North, Douglass C. 1992. “Transa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cournot Duopoly
Cournot competition is an economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide on independently of each other and at the same time. It is named after Antoine Augustin Cournot (1801–1877) who was inspired by observing competition in a spring water duopoly. It has the following features: * There is more than one firm and all firms produce a homogeneous product, i.e., there is no product differentiation; * Firms do not cooperate, i.e., there is no collusion; * Firms have market power, i.e., each firm's output decision affects the good's price; * The number of firms is fixed; * Firms compete in quantities rather than prices; and * The firms are economically rational and act strategically, usually seeking to maximize profit given their competitors' decisions. An essential assumption of this model is the "not conjecture" that each firm aims to maximize profits, based on the expectation that its own ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Antoine Augustin Cournot
Antoine Augustin Cournot (; 28 August 180131 March 1877) was a French philosopher and mathematician who also contributed to the development of economics. Biography Antoine Augustin Cournot was born at Gray, Haute-Saône. In 1821 he entered one of the most prestigious Grandes Écoles, the École Normale Supérieure, and, according to Sandmo: in 1823 he took a license degree in mathematics at Sorbonne University. He then became the private secretary of a field marshal who required assistance in writing his memoirs. This position left Cournot with considerable time for his own pursuits. In the course of his ten years in the field marshal's employment he took two doctoral degrees, one in mechanics and one in astronomy. In addition, he published a number of articles and even acquired a degree in law. Subsequently, Cournot held positions as professor of mathematics, chief examiner for undergraduate students, and rector of Dijon Academy. By the time Cournot died in 1877, he was ne ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interorganizational System
An interorganizational system (IOS) is a system between organizations, or "shared information system among a group of companies."A. Gunasekaran, Maqsood Sandhu (2010) ''Handbook on Business Information Systems.'' p. 773 The most common form of interorganizational system is electronic data interchange, which permits instantaneous computer-to-computer transfer of information. Overview Interorganizational systems allow the flow of information to be automated between organizations in order to reach a desired supply-chain management system, which enables the development of competitive organizations. This supports forecasting client needs and the delivery of products and services. Interorganizational system helps to better manage buyer-supplier relationships by encompassing the full depths of tasks associated with business processes company-wide. In doing these activities, an organization is able to increase the productivity automatically; therefore, optimizing communication within al ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Group
In the social sciences, a social group can be defined as two or more people who interact with one another, share similar characteristics, and collectively have a sense of unity. Regardless, social groups come in a myriad of sizes and varieties. For example, a society can be viewed as a large social group. The system of behaviors and psychological processes occurring within a social group or between social groups is known as group dynamics. Definition Social cohesion approach A social group exhibits some degree of social cohesion and is more than a simple collection or aggregate of individuals, such as people waiting at a bus stop, or people waiting in a line. Characteristics shared by members of a group may include Interest (emotion), interests, Value (personal and cultural), values, Social representation, representations, ethnic or social background, and kinship ties. Kinship ties being a social bond based on common ancestry, marriage or adoption. In a similar vein, some ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Digital Rights Management
Digital rights management (DRM) is the management of legal access to digital content. Various tools or technological protection measures (TPM) such as access control technologies can restrict the use of proprietary hardware and copyrighted works. DRM technologies govern the use, modification, and distribution of copyrighted works (such as software and multimedia content), as well as systems that enforce these policies within devices. Laws in many countries criminalize the circumvention of DRM, communication about such circumvention, and the creation and distribution of tools used for such circumvention. Such laws are part of the United States' Digital Millennium Copyright Act (DMCA), and the European Union's Information Society Directive (the French DADVSI is an example of a member state of the European Union implementing the directive). DRM techniques include licensing agreements and encryption. The industry has expanded the usage of DRM to various hardware products, such as K ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
