Mancur Olson, Jr.(2000)"Big Bills Left on the Sidewalk: Why Some Nations are Rich, and Others Poor”

This is a study to explain why there is big difference between rich countries and poor ones.　In this paper, author adapt new or endogenous growth models feature externalities that increase with investment or with stocks of human or tangible capital and can readily explain why countries with high per capita incomes grow as fast or faster as low-income countries.

As an explanation for the fastest-growing countries are poor countries, it says poor countries on average have opportunities to grow faster than riches, but poor economic policy or institution prevent it.


Q What is endogenous model?

Douglass C.North(1991)”Institutions”

Institutions include formal(laws, constitutions) and informal(conventions, traditions). This paper shows relationship between economic development and institutional development, because in economic history, institutions are given.

In this paper, institutions made to make monopolistic situation first, because there is no authority and someone who has more skill and information get more power and for them, monopoly is the best way to keep profit. However, this monopolistic situation makes a gap between players. This emerge competition, evolution, incremental development. Less profitable player tries to get more profit to create better institution, and monopolistic situation will become weak because it is weakness of whole country in terms of national competition.

However, “good” institution depends on environment. If one institution is good in U.S., it does not mean it will work in Latin America.

Ross Levine(2005)"Law, Endowments and Property Rights”

This is a research to inspect historically-formed questions; Property rights are affected by law and endowments? Many researchers show property rights are crucial for personal welfare and economic development, but they did not show the reason for differences in property rights among countries.

In this paper, author test the relation between law and property rights, and endowments and property rights. Law means common law(British) and civil law(French). And common law has better property rights than civil one because latter was made to minimize jurisdiction. Endowments mean inequality of wealth. If there is inequality of wealth between people, elites made law to protect and exploit others. And if wealth are equal, law is made for equality.

In conclusion, historical hypothesis is proved.

David S. Lamdes(2006)”Why Europe and the West? Why not China”

This is a study to explain the reason why China lose westerners nevertheless it exceeded western before 19 century.

According to the paper, there were two chances to develop, but China failed. The reason is social system and value.

Chance 1: continuing technology
Lacked a free market and institutionalized property rights.
Lager value of society weights custom and consensus.
-in Europe, Judaeo-Christian respect for labor as religious value
-free market is self-development system because an enterprise is free and innovation worked and paid, that rulers and vested interests were narrowly constrained in what they could do to prevent or discourage innovation.

Chances 2:learn from western
One consequence was a prudent, almost instinctive, resistance to change
Another consequence was a plague of lies and misinformation: officials wrote and told their superiors what they wanted to hear: or what the subordinate thought the superior would want to hear.

Luigi Guiso, Paola Sapienza and Luigi Zingales(2006)”Does Culture Affect Economic Outcomes?”

This is a application economical analysis to culture. In recent years, some research about relation between cultures and economic outcomes emerged through better techniques of cultural analysis. This paper summarizes these approach and achievements.

In this paper, authors define culture as “those customary beliefs and values that ethnic, religious, and social groups transmit fairly unchanged from generation to generation”, and affect society through prior beliefs and values or preferences.

First, it shows direct impact of culture on expectation and preferences. Second it describes the fact that beliefs and preferences have an impact on economic outcomes. And last, it demonstrates interaction between culture and economics. But it also takes the thought that culture changes slowly and therefore culture is given for people in the culture.


In conclusion, it shows culture affects economical outcomes, and even a culture which was made when it was useful becomes a constraint for another situation, it remains.

Questions:
What is basic logic for effectiveness of culture to beliefs and preferences?

C.K.Prahalad,"The Innovation Sandbox”

This is the paper to promote business in developing countries through innovation to make it possible for poor to access. It describes some successful organization in India, and extracts principles of innovation.

For innovation, key of action is followings:
1. Specialization(=focus on niche)
2. Pricing(=low)
3. Capital Intensity(=Scale merit)
4. Talent Leverage(=specialization of HR)
5. Workflow(=management)
6. Customer Acquisition(=customer driven)
7. Value and Organziation(=Culture)

It is resembles industry structure analysis such as Porter’s five forces. Ultimately, the principle of success of business is same in any situation.

Barry R. Weingast(2005)”The Constitutional Dilemma of Economic Liberty”

This is an application of game theory to constitution problem. In developing countries, there are still no good governance even if they have constitution. This paper approaches with view of self-enforcing from simple government to emergence of constitution. And it shows some implication to make good constitution for developing countries.

In conclusion, it shows two things. First is need of shock to improve constitution because sometime constitutions in developing countries do not match the situations in the countries. Second is adjustment; to remake and add more regulation to meet people’s demand.

Questions:
What is the model for constitution?
Why shock is needed in theory?

Linda Babcock, George Loewenstein(1997)"Explaining Bargaining Impasse: The Role if Self-Serving Biases”

This is a paper about contract theory. It suggests concept of Self-serving bias, which is fair mind depends on the view(not actually situation), and self interest. This biases occurs when there is asymmetrical view from a person, and lead negotiation to a impasse.

This concept of self-serving biases is useful for explaining contradiction such as reason for effectiveness of job search assistance. This area is between economics and psychology. Through the way of experiment is different, these two science is the same essencially.

Gary D. Libecap and Steven N. Wiggins, (1984),”Contractual Responses to the Common Pool: Prorationing of Crude Oil Production”

This paper is application of game theory and inspection of it. The paper try to describe effect of bargaining cost to institutions, forms of contract.

In conclusion, it shows concentration has positive effect for output, and form of contract. But, like the prisoner’s dilemma, contracts take form of prorationing even if it is costly.

Tore Ellingsen and Magnus Johannesson(2007),”Paying Respect”

This is a paper about the non-monetary incentive. In pure economics, people work for only monetary incentive. However, it is not true for real world, because workers get utility from respect from employers and co-workers.

There are two models about behavioral agency theory; the social preference approach, and the social esteem approach. Former focuses relationship among people, and latter focuses social value and its influence to incentives. In this paper, authors adapt the former, and discuss evidence that workers respond to attention, symbolic rewards, and trust. Finally, they demonstrate through model of respect and incentives, relation between incentives and respect, and effect of respect to labor markets.

Conclusion is that, economic analysis is wrong to insist that all people always work for money only.

Questions:
What is the model in the paper?
What is the core concept and differences of attention, rewards, respect…?

C.K.Prahalad and Stuart L. Hart, ”The Future at the Bottom of the Pyramid”

This is a proposal for MNCs to enter the Bottom of the Pyramid; Tier 4, the market where people’s annual per capita income is less than $1,500, but the population is 4,000 millions.

Authors pointed that some unreasonable assumption, such as poor market is for government and NGO, has prevented MNCs from Tier 4. But actually, Tier 4 is also area for MNCs and can improve MNCs activity.

As Tier 4 is important for MNC, MNC is important Tier 4, because only MNCs has Resources, Leverages, Bridges, and Transfers. To make use of these advantages, MNCs should build a local base of support, conduct R&D focused on the poor, Form new alliances, increase employment intensity, and reinvest cost structures.

Finally, Tier 4 ‘s market is made by local firm, MNCs, and global partnership.

Paul L. Joskow(1998)”Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets”

This paper examines the importance of long term contract when relation-specific investment is needed. In this research, 277 contracts are used to inspect the hypothesis that relation-specific investment leads durable contract, and the hypothesis strongly supported.

Questions:
What is simple model for this situation?
What is general implication for this?
Is econometrics interesting subject for me?

Thomas C. Schelling(1998)”Self-Command in Practice, in Policy, and in a Theory of Rational Choice”

This paper treats the dynamics of individual preference. People change their value at a certain time, and it is not unusual. In this paper, author first explains such self-command, and develop the concept for rational customer. And second, he takes some experiment, and last shows implications for welfare judgment.

Questions
What is the difference of self-command from simple model, and how the economical model change?
What it the implication for society or law?

Jean Tirole,(2000)”Corporate Governance”

This is an economic analysis of the concept shareholder value, and shareholder society. It shows, in conclusion, the implementation of the stakeholder society makes three lacks: pledgeable income, decision-making, and clear mission for management.

First, the paper starts analysis in a firm level, focusing on pledgeable income, monitoring, and control rights with simple framework. Second, the paper develop the previous analysis for society level to analyze shareholder society. And last it shows the cost and benefit shareholder society such as protecting noncontrolling stakeholders, convenants, exit options, flat claims, emerged fiduciary duty.

Questions:
What is the first basic model?
What is the logic of badness of shareholder society in game theory?
How to analyze cost and benefit?

Remko I. van Hoek(1999),”From reversed logistics to green supply chains”

This is a study to aiming at making framework of green supply chain to meet ecological foot print’s requirement. This paper demonstrates key points and challenges of research of green supply chain management, and possibility for them in real world.(reverse means recycle)

In this paper, author organizes concepts of reverse logistics, green supply chain, and the change from former to latter. The biggest difference between two is range of players. Logistics means only firms activity, but supply chain contains streams of product, raw supplier to customers, nearly whole society. What is more, globalization make supply chain more broad and complex. To overcome this, this paper suggests firms should not only reverse but also act value-seeking approach, to add some value for products, for resource reduction; ultimate goal.

Esben Rahbek Pedersen and Peter Neergaard(2006)"Caveat Emptor-Let the Buyer Beware! Environmental Labelling and the Limitations of “Green” Consumerism

This is a study for inspecting Green labeling. In 1990s, a great many number of environmental rebelling products were released, and some of them received a great deal of attention while others remain in obscurity. To understand the difference, this paper discusses factors that determine market impact. The conclusion of the paper is that, the differences are caused by over-simplified concept of “green” consumer, and this leads firms fail to capture the actual complexity of consumer value, attitudes of behavior.

Ernst Fehr and Simon Gachter(2000)”Fairness and Retaliation: The Economics of Reciprocity”

The aim of the paper is to explain reciprocity, a situation in which two people, groups, or countries give each other similar kinds of help or special rights. Fundamentally, economics expects selfish individuals and they can reach efficient situation in the long run. However, the authors think individuals differently; fairness, and reciprocity, and explain real situation through experiments in laboratories.

The view of reward is more effective than punishment even if it is same in economics is interesting. And the facts that fairness or incomplete constrain is preferable than selfish and complete are also interesting. But I think they can be explain profit maximization in the long term. The result of the paper is interesting for importance of system, but not so interesting for another aspect of human preference, I think.

Rolf Wustenhagen and Jasper Boehnke(2006),"Business models for sustainable energy”

“sustainable energy technologies” can be defined as providing energy services with lowe environmental impact than today, while maintaining economic efficiency and being socially acceptable. This paper is a chapter of a book and it focuses on the sustainable production perspective of this broader picture, by looking at business models for sustainable energy. It starts to describe energy industry, and next overlooks history of researches of business model, and presents appropriate model for sustainable energy technology.

According to the paper, sustainable energy technology is characterized by three factors: environmental externality, capital intensity and long lead times, and the power of incumbents. On the other hand, core concepts of business model are value production(=what is value), configuration of value creation(=how to deliver the value), and revenue model(=how to make money). These factors correspond with each other.

Author says, about value production is customer value. About configuration of value creation, outsourcing is important. And after sales service is contribute to revenue model.

Rolf Wustenhagen(2004)”Sustainability and Competitiveness in the Renewable Energy Sector”

This is a case study of a Danish wind turbine manufacturing company, Vestas. Between 1994 and 2001, Vesta’s sales have increased more than tenfold. This paper examines the key success factor of Vestas, and describes its challenges for future.

The key success factors of Vestas are five.

1.A clear vision for Vestas and the industry; focus on renewable energy
2.Managing internal growth; use government, stock option, school
3.International expansion
4.The politics of wind energy; because energy is regulated industry
5.Social responsibility and environmental management; ISO14001, some certification

However, Vestas faces some challenges for example, U.S. overcapacity of energy, high utilities’ credit rate which prevent to develop projects, change of exchange rate, doubt of core-competence of vertical integration. Theoretically, wind energy is most efficient in other renewable energies and its needs will become increase to meet Kyoto protocol by 2012, but it is not clear how to solve these questions.

John Wiley and Sons, 2006,”Current Issues in the Greening of Industry”

This is a guide for business schools to study environmental case. Today, environmental problem is always discussed in everywhere in the world. But only business school, the heat is low.

For the reason of business school’s neglect of environmental energy issue, this paper presents two reasons. First is business school missed the trends because of big change of one industry different from their traditional way of study of routine whole industry. Second is its interdisciplinarity, which means complexity.

However, actually, the issue of greening industry is appropriate topic for business schools. In the future, it will be more study from the schools.