Showing papers on "Opportunism published in 1986"

Constraining the Transfer Society: Constitutional and Moral Dimensions

Abstract: The recent emphasis in the economics literature on transaction costs and contracting has provided economists with a much clearer understanding ofthe social coordination process in a market setting. Perhaps the most important conclusion to be drawn from this literalure is that focusing solely on adjustments along the price and quantity margins does not capture how robust human action is. Market exchanges are often complex agreements between individuals, and involve principals hiring agents to carry out specific functions. These arrangements result in gains from trade (rents), the distribution of which must be specified through the contracts. Otherwise the rents would be always up for grabs until rights to them were defined and enforced through the contractual process. Hence there are benefits associated with resources devoted to contract specification but obviously there also are costs. Given these costs, it is in the interest ofentrepreneurs to conserve on transaction or contracting costs. Selfenforcing contracts (Klein and Leffier 1981), residual claimancy (Alchian and Demsetz 1972), postcontractual opportunism (Klein, Crawford, and Alchian 1978), and wealth held hostage (Williamson 1983) are all examples of the insights into the contractual process that have come out of this way of thinking.

Crisis in Science

Abstract: There is no doubt that science is becoming a servant of politics and industry, to the great detriment of its cultural mission. In almost all countries throughout the world politicians and industrialists dispose of scientists, often decide on their work and sometimes even on their beliefs and convictions. This happens not only because some modern scientific activities require large resources. A more dangerous factor is the growing opportunism of many, mainly young, scientists to whom Science is only a modern way to a good career.