Search

The paper develops a theoretical framework for analyzing the exchange structure in the trading of imperfectly imitable and imperfectly mobile firm resources. It first explores the conditions for such resources to be gainfully traded between firms and then investigates the interconnections between barriers to imitation and impediments to trading. A major part of the paper is devoted to developing an integrative and yet parsimonious model for assessing the exchange structure between firms that are involved in the trading of strategic resources in the face of significant transaction cost problems. The model is applied in the last part of the paper to the analysis of the choice between acquisitions and collaborative ventures. [ABSTRACT FROM AUTHOR]

The present paper examines a time state preference model of exchange under the assumption that individuals have time-state-independent multiperiod logarithmic utility functions. Prior contributions of Dreze and Modigliani and Myers to multiperiod state preference theory are static since there are no possibilities for trading in intermediate periods and individuals acquire in the current period their state-contingent consumption claims for all future periods. In contrast, the myopic property of time-state-independent logarithmic utility permits consideration of trading in all intermediate periods. Since the model deals only with exchange equilibrium, investment in real assets and production are assumed to be exogenous. Thus, the aggregate amount of consumption for the whole economy in each state in each time period is exogenous. The securities traded in the capital market are bundles of claims on end of period wealth contingent on particular states of the world. It is assumed that the structure of the capital market permits individuals to establish separate contingent claims for those states of the world on whose probability of occurrence beliefs differ. The present paper examines a time state preference model of exchange under the assumption that individuals have time-state-independent multiperiod logarithmic utility functions. Prior contributions of Dreze and Modigliani and Myers to multiperiod state preference theory are static since there are no possibilities for trading in intermediate periods and individuals acquire in the current period their state-contingent consumption claims for all future periods. In contrast, the myopic property of time-state-independent logarithmic utility permits consideration of trading in all intermediate periods. Since the model deals only with exchange equilibrium, investment in real assets and production are assumed to be exogenous. Thus, the aggregate amount of consumption for the whole economy in each state in each time... [ABSTRACT FROM AUTHOR]

This paper proposes a dynamic framework of economic organization called the option-creating institution (OCI) model. The claim is made that firm, market, and hybrid governance structures emerge from the need for flexibility in an uncertain world. Each governance structure uniquely provides strategic real options that allow capitalist-entrepreneurs, with unique risk preferences, to better organize their economic activities. The real options perspective on economic organization is developed by drawing insights from the exchange and coordination perspectives. It is proposed that this real options perspective matches practicing decision makers' intuition and that an inductive OCI model will offer a prescriptive guide. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In his paper, Roth has used a three-person game example to illustrate certain difficulties connected with generalizations of the Shapley value for games without side payment. This note argues that cooperative solution concepts in general often give rise to similar difficulties, and that the best way of avoiding them is to analyze cooperative games by means of noncooperative bargaining models. [ABSTRACT FROM AUTHOR]

This paper surveys the history of an alternative view of value creation to that associated with industrial production. It argues that technical breakthroughs and social innovations in actual value creation render the alternative-a value co-production framework-ever more pertinent The paper examines some of the implications of adopting this framework to describe and understand business opportunity, management, and organizational practices. In the process, it reviews the research opportunities a value co-production framework opens up. [ABSTRACT FROM AUTHOR]

Although recent studies of strategic groups have provided much insight into the nature of intra-industry rivalry, most studies have focused on the strategies of seller firms. In this paper we argue that the bilateral exchange between groups of buyers and sellers in adjacent markets should be made explicit. Within this bilateral context, the market for non-tactical Navy infomation systems is empirically examined. Strategic groups are developed for both seller and buyer industries, and the interaction between these groups are explored over time. In particular, two market interventions, the imposition of industrial funding procedures in 1984 and a Life-Cycle requirement order in 1988, were examined with respect to their impact on seller/customer exchanges and vertical integration strategies. Significant changes in strategies were noted, and explained within a transaction cost framework. [ABSTRACT FROM AUTHOR]

Sequential exchange opportunities are valued using the techniques of modern option-pricing theory. The vehicle for analysis is the concept of a compound exchange option. This security is shown to exist implicitly in several contractual settings. A valuation formula for this option is derived. The formula is shown to generalize much previous work in option pricing. Several applications of the formula are presented. [ABSTRACT FROM AUTHOR]

Invited for this month's cover are Iwona and Jean‐François Nierengarten from the University of Strasbourg. The cover picture shows the structure of a [2]rotaxane building block bearing 3,5‐bis(trifluoromethyl) benzenesulfonate (BTBS) stoppers. The BTBS moieties of this compound are good leaving groups allowing to perform stopper exchange by treatment with different nucleophiles to afford the corresponding rotaxanes with ester, ether or thioether stoppers. Read the full text of their Full Paper at 10.1002/open.202000035. [ABSTRACT FROM AUTHOR]

The Auhelawa people of Normanby Island (Milne Bay Province, Papua New Guinea) typically observe the death of an individual through a series of feasts in which the lineage of the deceased and its lateral relatives exchange food and perform rituals of mourning. Recently, a number of people have decided to reject all forms of 'custom' in favor of a practice of 'Christian custom' in which no food is exchanged and no rituals are performed. This paper examines the way people view custom and its Christian alternative. It argues that the basis for Christian forms of mortuary feasting is a shift away from thinking of feasts in terms of reciprocity and towards thinking of them in terms of traditional customary rules. In this context, active church members have begun to represent the absence of markers of custom as itself a marker of an alternative Christian custom. I argue that this reformulation of the relationship of custom and change is meant to give concrete form to the value of Christian individualism as the basis for sociality. The paper then concludes that in order to explain historical changes in ritual systems, the study of ritual needs to examine ritual in relation to the values that underlie it. [ABSTRACT FROM AUTHOR]

Bargaining is common in markets for heterogeneous goods and differences in bargaining power between buyer and seller affect the negotiated transaction price. Previous research has found systematic evidence in the housing markets that weak buyers pay higher prices and weak sellers receive lower prices for their homes. Earlier work has modeled the bargaining effect as a parallel shift in the hedonic function, implicitly assuming that attribute shadow prices were unaffected by the bargaining process. In this paper, we use a sample of home sales where the seller's bargaining power is weakened by the fact that the home is vacant at the time of sale to test whether the effect of bargaining is best captured by a shift in the hedonic constant or whether the attribute shadow prices vary as well. The question is significant for property valuation where estimation of the marginal value of an attribute is commonly used to adjust comparable sales data. We find strong confirmation that bargaining power influences the negotiated price. We also find evidence that bargaining power alters attribute prices, although we do not find a consistent pattern across markets. [ABSTRACT FROM AUTHOR]

Sociologists have drawn on anthropological studies of gift exchange systems to help develop models of exchange in social life. This paper presents a reconsideration of the relatively neglected Maussian view of gift and commodity exchange, drawing on both Mauss's The Gift and recent work by anthropologists who have extended his ideas. The Maussian model illustrates the partiality of some sociological models of exchange by showing that people, objects, and social relations form a whole that is created and recreated in different ways when people transact with each other in gift and commodity relations. The paper concludes with an illustration of the utility of Mauss's model, showing how it can extend recent sociological discussions of the social meaning of objects. [ABSTRACT FROM AUTHOR]

This paper presents a completely explicit exchange environment in which agents wishing to exchange one type of good for another choose to trade for fiat money which is then traded for the desired goods. This exchange pattern is chosen over barter because specified properties of fiat money make this pattern less expensive than the search for a double coincidence of wants. Although the transaction services of money directly affect agents' utility, the model's welfare implications are those of the basic overlapping generations models, not those of models with money balances in the utility function. [ABSTRACT FROM AUTHOR]

Several neighbouring microgrids (MGs) can be coupled to each other to increase their reliability and resiliency, as well as flexibility in their operation. A dc power exchange link can bring several benefits including their isolation among each other, which will enable power exchange amongst MGs with various operating conditions and standards. This study has focused on such a scheme and presents an energy transaction management to provide provisional support among the MGs, when one or more MGs experience overloading or renewable-based excessive generation, resulting in unacceptable voltage or frequency deviation. A suitable operation and control strategy have been proposed for the power electronic converters, employed between the MG and the dc power exchange link. The performance of the proposed power management technique is evaluated through simulation studies in PSIM®, which validate the success and efficacy of the proposal. [ABSTRACT FROM AUTHOR]

We introduce polluting emissions in a sequential noncooperative oligopoly model of bilateral exchange. In one sector, a leader and a follower use polluting technologies which create negative externalities on the payoffs of strategic traders who belong to the other sector. By modeling emissions as a negative externality, we show that the leader pollutes more (less) than the follower when strategies are substitutes (complements). Then, we consider the implementation of public policies to control the levels of emissions, namely, two taxation mechanisms and a permit market. We study the effects of these public policies. Moreover, we determine the conditions under which these public policies can implement a Pareto‐improving allocation. [ABSTRACT FROM AUTHOR]

I use UK betting exchange data on Wimbledon tennis matches to investigate the Grossman and Stiglitz (1980) paradox. Risk-free arbitrage opportunities arise frequently during matches (as information arrives and asynchronously shifts prices), but seldom arise before matches (when there is little information to move prices). I find that on the few occasions that arbitrage opportunities do arise before matches, they last substantially longer than average. This suggests, in line with the paradox, that traders neglect to acquire information (carry out research or watch markets) if they believe that markets are already efficient. This neglect, in turn, makes markets inefficient. [ABSTRACT FROM AUTHOR]

We study empirically the macroeconomic effects of an explicit de jure quantitative goal for monetary policy. Quantitative goals take three forms: exchange rates, money growth rates, and inflation targets. We analyze the effects on inflation of both having a quantitative target and hitting a declared target. Our empirical work uses an annual data set covering 42 countries between 1960 and 2000, and takes account of other determinants of inflation (such as fiscal policy, the business cycle, and openness to international trade) and the endogeneity of the monetary policy regime. We find that both having and hitting quantitative targets for monetary policy is systematically and robustly associated with lower inflation. The exact form of the monetary target matters somewhat (especially for the sustainability of the monetary regime) but is less important than having some quantitative target. Successfully achieving a quantitative monetary goal is also associated with less volatile output. [ABSTRACT FROM AUTHOR]

This paper examines an exchange economy with heterogeneous indivisible objects that can be substitutable or complementary. We show that a competitive equilibrium exists in such economies, provided that all the objects can be partitioned into two groups, and from the viewpoint of each agent, objects in the same group are substitutes and objects across the two groups are complements. This condition generalizes the well-known Kelso-Crawford gross substitutes condition and is called gross substitutes and complements. We also provide practical and typical examples from which substitutes and complements are both jointly observed. [ABSTRACT FROM AUTHOR]

The determinants of Australia's exchange rate based on the internal–external balance approach introduced by Williamson (1983) were analysed. Internal balance implies that the economy is operating at supply potential with no inflationary pressures. External balance is characterised as the sustainable net flow of resources (corresponding to a current account to gross domestic product ratio) between countries in internal balance. After estimating a disaggregated trade model for Australia, estimates of the medium-term exchange rate associated with a given current account position were provided. These estimates, however, vary considerably through time because of variations in key parameters. [ABSTRACT FROM AUTHOR]

This paper provides an explanation for the observed widespread use of a money good with little intrinsic value. The explanation derives from the result that if agents expect some particular good to play the role of money, then sequential, pairwise trading leads to an economy-wide Pareto optimal allocation. [ABSTRACT FROM AUTHOR]

We use data from Hungary to establish two results about the relationship between the government and the media. (i) We document large advertising favors from the government to connected media, and large corruption coverage favors from connected media to the government. Our empirical strategy exploits sharp reallocations around changes in media ownership and other events to rule out market‐based explanations. (ii) Under the assumptions of a structural model, we distinguish between owner ideology and favor exchange as the mechanism driving favors. We estimate our model exploiting within‐owner changes in coverage for identification and find that both mechanisms are important. These results imply that targeted government advertising can meaningfully influence content. Counterfactuals show that targeted advertising can also influence owner ideology, by making media ownership more profitable to pro‐government connected investors. Our results are consistent with qualitative evidence from many democracies and suggest that government advertising affects media content worldwide. [ABSTRACT FROM AUTHOR]

Common‐sense intuition suggests that, when people are engaged in informational exchanges, they communicate so as to be reasonably sure that they perform the exchanges faithfully. Over the years, we have found evidence suggesting that this intuition, which is woven into several influential theories of human communication, may be misleading. We first summarize this evidence and discuss its potential limitations. Then, we present a new study that addresses the potential limitations. A confederate instructed participants to "pick up the skask" from a tray containing six objects and move it to a specific location. Since skask is a non‐word invented by us, participants had to ask for clarification to perform the instruction faithfully. In contradiction with the intuition that people pursue faithfulness when engaged in informational exchanges, 29 of the 48 participants we tested performed the instruction without asking for clarification. We identified a possible cause for this behavior, which occurred more frequently when avoiding the clarification was unlikely to result in an overt consequence (an error in the execution of the instruction that could be noticed by the confederate or the experimenter). Other factors such as individual differences and the specific interpersonal dynamics of the experimental settings, if they played a role at all, did it to an extent that is unlikely to be comparable to that of the role played by overt consequences. Considered together, our various assessments of the extent to which people engage in faithful informational exchanges converge on a simple conclusion: Communicating faithfully is a substantially demanding task, and people often fail at it. We discuss the implications of this conclusion and speculate on its relevance for understanding the evolutionary past of human communication. [ABSTRACT FROM AUTHOR]

We extend the locking technique to separate the poleward shift of the atmospheric circulation in response to quadrupled CO2 into contributions from (1) CO2 increase, (2) cloud radiative effects, and (3) wind and surface humidity‐induced surface heat exchange. In aquaplanet simulations, wind and surface humidity‐induced surface heat exchange accounts for 30–60% of the Hadley cell edge and midlatitude eddy‐driven jet shift. The increase of surface specific humidity dominates and mostly follows global mean warming. Consistent with previous work the remaining shift is attributed to cloud radiative effects. Across CMIP5 models the intermodel variance in the austral winter circulation shift in response to quadrupled CO2 is significantly correlated with the response of the subtropical‐subpolar difference of surface heat exchange. The results highlight the dominant role of surface heat exchange for future circulation changes. Plain Language Summary: As climate warms, atmospheric wind patterns are predicted to shift poleward. However, climate models disagree on the magnitude of the shift, and we lack a clear understanding of the dominant mechanisms. Here we extend a technique that "locks" a given variable to quantify the importance of (1) CO2 increase, (2) cloud radiative changes, and (3) surface heat exchange changes. We apply the extended technique in a simplified Earth‐like model with global ocean to quantify the impacts of the three effects on the circulation shift in response to quadrupled CO2 concentration. In addition, we show that in response to a quadrupling of CO2 in 27 state‐of‐the‐art climate models, the model spread in the poleward shift of Southern Hemispheric wintertime circulation is significantly correlated with the response of the subtropical‐subpolar difference of surface heat exchange. Therefore, improving the understanding of surface heat exchange is important for improving the predictions of future wind patterns. Key Points: Extended locking technique quantifies the impact of wind and surface humidity‐induced surface heat exchange on the response to increased CO2Surface humidity changes dominate surface heat exchange response and are as important as cloud radiative changes for circulation shiftCMIP5 austral winter jet shift is correlated with subtropical‐subpolar contrasts in surface heat exchange [ABSTRACT FROM AUTHOR]

Front Cover: Diversity Oriented Preparation of Pillar[5]arene-Containing [2]Rotaxanes by a Stopper Exchange Strategy (ChemistryOpen 4/2020) Keywords: rotaxanes; pillar[5]arenes; arylsulfonate; stopper exchange; supramolecular chemistry EN rotaxanes pillar[5]arenes arylsulfonate stopper exchange supramolecular chemistry 386 386 1 04/30/20 20200401 NES 200401 B The Front Cover b shows a rotaxane incorporating a pillar[5]arene macrocyclic moiety and an axle substituted with two 3,5-bis(trifluoromethyl) benzenesulfonate (BTBS) leaving groups. Rotaxanes, pillar[5]arenes, arylsulfonate, stopper exchange, supramolecular chemistry. [Extracted from the article]

Proteins require an optimal balance of conformational flexibility and stability in their native environment to ensure their biological functions. A striking example is spidroins, spider silk proteins, which are stored at extremely high concentrations in soluble form, yet undergo amyloid‐like aggregation during spinning. Here, we elucidate the stability of the highly soluble N‐terminal domain (NT) of major ampullate spidroin 1 in the Escherichia coli cytosol as well as in inclusion bodies containing fibrillar aggregates. Surprisingly, we find that NT, despite being largely composed of amyloidogenic sequences, showed no signs of concentration‐dependent aggregation. Using a novel intracellular hydrogen/deuterium exchange mass spectrometry (HDX‐MS) approach, we reveal that NT adopts a tight fold in the E. coli cytosol and in this manner conceals its aggregation‐prone regions by maintaining a tight fold under crowded conditions. Fusion of NT to the unstructured amyloid‐forming Aβ40 peptide, on the other hand, results in the formation of fibrillar aggregates. However, HDX‐MS indicates that the NT domain is only partially incorporated into these aggregates in vivo. We conclude that NT is able to control its aggregation to remain functional under the extreme conditions in the spider silk gland. [ABSTRACT FROM AUTHOR]

Liver exchange has been practiced in small numbers, mainly to overcome blood‐type incompatibility between patients and their living donors. A donor can donate either his smaller left lobe or the larger right lobe, although the former option is safer. Despite its elevated risk, right‐lobe transplantation is often utilized due to size‐compatibility requirement with the patient. We model liver exchange as a market‐design problem, focusing on logistically simpler two‐way exchanges, and introduce an individually rational, Pareto‐efficient, and incentive‐compatible mechanism. Construction of this mechanism requires novel technical tools regarding bilateral exchanges under partial‐order‐induced preferences. Through simulations we show that not only can liver exchange increase the number of transplants by more than 30%, it can also increase the share of the safer left‐lobe transplants. [ABSTRACT FROM AUTHOR]

Particularly high saving rates among the elderly in both rural and urban China call for an investigation of the involved bequest motive. Utilizing unique survey data from a diverse group of Chinese households, we document that the magnitude of the bequest from parent to child is associated with the level of personal assistance from child to parent. Moreover, we find indicative evidence that both bequest and assistance are increasing in the parent's income and decreasing in the child's income. Comparing with the predictions from a stylized intergenerational model, these findings are consistent with an exchange‐based bequest motive. Our findings have potential implications for how public policies and transfer schemes should be designed in order to contribute to the Chinese government objective of increased private consumption. Our results are conditional on the inclusion of housing wealth as part of the bequest, which indicates that transfer of housing is key to understanding the intergenerational assistance and bequest motives, and subsequently the high saving levels among the elderly in China. [ABSTRACT FROM AUTHOR]

Fentanyl, also known as 'jackpot', is a synthetic opiate that is 50–100 times more potent than morphine. Clandestine laboratories produce analogues of fentanyl, known as fentalogues to circumvent legislation regarding its production. Three pyridyl fentalogues were synthesized and then hyperpolarized by signal amplification by reversible exchange (SABRE) to appraise the forensic potential of the technique. A maximum enhancement of ‐168‐fold at 1.4 T was recorded for the ortho pyridyl 1H nuclei. Studies of the activation parameters for the three fentalogues revealed that the ratio of ligand loss trans to hydride and hydride loss in the complex [Ir(IMes)(L)3(H)2]+ (IMes=1,3‐bis(2,4,6‐trimethylphenyl)imidazole‐2‐ylidene) ranged from 0.52 to 1.83. The fentalogue possessing the ratio closest to unity produced the largest enhancement subsequent to performing SABRE at earth's magnetic field. It was possible to hyperpolarize a pyridyl fentalogue selectively from a matrix that consisted largely of heroin (97 : 3 heroin:fentalogue) to validate the use of SABRE as a forensic tool. [ABSTRACT FROM AUTHOR]

How do antecedent (past) conditions influence land‐carbon dynamics after those conditions no longer persist? In particular, quantifying such memory effects associated with the influence of past environmental (exogenous) and biological (endogenous) conditions is crucial for understanding and predicting the carbon cycle. Here we show, using data from 42 eddy covariance sites across six major biomes, that ecological memory—decomposed into environmental and biological memory components—of daily net carbon exchange (NEE) is critical for understanding the land‐carbon metabolism, especially in drylands for which memory explains ~ 32% of the variation in NEE. The strong environmental memory in drylands was primarily driven by short‐ and long‐term moisture status. Moreover, the strength of environmental memory scales with increasing water stress. This universal scaling relationship, emerging within and among major biomes, suggests a potential adaptive response to water limitation. Our findings underscore the necessity of considering ecological memory in experiments, observations and modelling. [ABSTRACT FROM AUTHOR]

We propose a new solution for discrete exchange economies and resource‐allocation problems, the exclusion core. The exclusion core rests upon a foundational idea in the legal understanding of property, the right to exclude others. By reinterpreting endowments as a distribution of exclusion rights, rather than as bundles of goods, our analysis extends to economies with qualified property rights, joint ownership, and social hierarchies. The exclusion core is characterized by a generalized top trading cycle algorithm in a large class of economies, including those featuring private, public, and mixed ownership. It is neither weaker nor stronger than the strong core. [ABSTRACT FROM AUTHOR]

Air–water gas exchange velocities (k) are critical components of many biogeochemical and ecological process studies in aquatic systems. However, their high spatiotemporal variability is difficult to capture with traditional methods, especially in turbulent flow. Here, we investigate the potential of sound spectral analysis to infer k in running waters, based on the rationale that both turbulence and entrained bubbles drive gas exchange and cause a characteristic sound. We explored the relationship between k and sound spectral properties using laboratory experiments and field observations under a wide range of turbulence and bubble conditions. We estimated k using flux chamber measurements of CO2 exchange and recorded sound above and below the water surface by microphones and hydrophones, respectively. We found a strong influence of turbulence and bubbles on sound pressure levels (SPLs) at octave bands of 31.5 Hz and 1000 Hz, respectively. The difference in SPLs at these bands and background noise bands showed a linear correlation with k both in the laboratory (R2 = 0.93–0.99) and in the field (median R2 = 0.42–0.90). Underwater sound indices outperformed aerial sound indices in general, and indices based on hydraulic parameters in particular, in turbulent and bubbly surface flow. The results highlight the unique potential of acoustic techniques to predict k, isolate mechanisms, and improve the spatiotemporal coverage of k estimates in bubbly flow. [ABSTRACT FROM AUTHOR]

We refer to frequently used determinants suggesting dominant interactions between distant atoms in various dimers. First of all, we show, against the still‐prevailling opinion, that, in general, bond paths have nothing in common with dominant intermolecular interactions and therefore they are useless in such cases. Quite the contrary, reliable information about dominant intermolecular interactions can be obtained by means of electrostatic potential maps, which very convincingly explain mutual orientation of molecules in a dimer. For the first time, numerous examples of interactions that violate both the concept of privileged exchange channels proposed by Pendás and his collaborators as well as inequalities obtained by Tognetti and Joubert for the β parameter related to secondary interactions are presented. The possible cause of this violation is suggested. We also show that the so‐called counterintuitive bond paths result from quite natural behavior of the electron density gradient vector, i. e. searching for those areas of space that are characterized by large values of electron density or the most expanded its distributions. [ABSTRACT FROM AUTHOR]

We identify a large subdomain, 𝒟, of quasilinear economies on which any efficient exchange rule will be generically (in the Baire sense) manipulable. For generic economies outside of 𝒟, we find rules that are locally non‐manipulable. The interior of the set 𝒟 consists of all economies in which competitive equilibrium would prescribe that all agents consume a positive quantity of money. Since we study quasilinear preferences, this is the domain of primary interest. Our locally non‐manipulable rules rely on the existence of traders who are willing to sell all of their cash and absorb the imbalances in the trading of the commodity. [ABSTRACT FROM AUTHOR]

Three types of trust in economic exchanges are identified: weak form trust, semi-strong form trust, and strong form trust. It is shown that weak form trust can only be a source of competitive advantage when competitors invest in unnecessary and expensive governance mechanisms. Semi-strong form trust can be a source of competitive advantage when competitors have differential exchange governance skills and abilities, and when these skills and abilities are costly to imitate. The conditions under which strong form trust can be a source of competitive advantage are also identified. Implications of this analysis for theoretical and empirical work in strategic management are discussed. [ABSTRACT FROM AUTHOR]

The medium of exchange in acquisitions is studied in a model where (i) bidder's offers bring forth potential competition and (ii) targets and bidders are asymmetrically informed. In equilibrium, both securities and cash offers are observed. Securities have the advantage of inducing target management to make an efficient accept/reject decision. Cash has the advantage of serving, in equilibrium, to "preempt" competition by signaling a high valuation for the target. Implications concerning the medium of exchange of an offer, the probability of acceptance, the probability of competing bids, expected profits, and the cost of bidders are derived. [ABSTRACT FROM AUTHOR]

This study investigates the degree to which African-American households are socially integrated into a multiracial, middle-class suburban neighborhood near Dallas, Texas. Although U.S. neighborhoods are becoming increasingly heterogeneous in composition, little is known about black households' participation in social and informational networks within multiracial middle-class neighborhoods. Drawing on theories of the gift and social capital, we view neighborhoods in terms of complex patterns of inter-household exchanges of material and symbolic goods. We predict that black-led households will exchange at a lower rate with their neighbors than will other households and test this prediction using survey data collected from 119 households and from follow-up interviews with eight black heads of household. Our main finding from the survey is that black households exchanged at a significantly lower rate than did other households, ceteris paribus. The follow-up interviews found little evidence of black racial homophily in neighboring or of racism within the neighborhood. However, the low rate of black inter-household exchanges may be partly explained by black head of households' personal experiences of racism outside the neighborhood and by a racially constituted disposition against borrowing from neighbors. We discuss implications of our findings for research on racial integration and segregation. [ABSTRACT FROM AUTHOR]

Historically, the world economy has been dominated by a single currency accepted in the exchange of goods and assets among countries. In recent decades, the U.S. dollar has played this role. The dollar acts as a 'vehicle currency' in the sense that agents in nondollar economies will generally engage in currency trade indirectly using the U.S. dollar instead of using direct bilateral trade among their own currencies. A vehicle currency is desirable when there are transactions costs of exchange. This article constructs a dynamic general equilibrium model of a vehicle currency. We explore the nature of the efficiency gains arising from a vehicle currency and show how it depends on the total number of currencies in existence, the size of the vehicle currency economy, and the monetary policy followed by the vehicle currency's government. We find that there can be significant welfare gains to a vehicle currency in a system of many independent currencies. But these gains are asymmetrically weighted toward the residents of the vehicle currency country. The survival of a vehicle currency places natural limits on the monetary policy of the vehicle currency country. [ABSTRACT FROM AUTHOR]

We assess the impact of two groups of economists: mainline economists, who regard economics primarily as the science of exchange and mainstream economists, who perceive economics primarily as the science of choice. To control for scholarly quality we investigate the citation impact of Nobel Prize winning economists, who we break up into the two groups, mainline and mainstream. We find that over the period from 1970 to 2007 mainline economists had more of an impact than mainstream economists. [ABSTRACT FROM AUTHOR]

As the most abundant, and frequently the only, archaeological evidence preserved within the volcanic soils of the Willaumez Peninsula, Papua New Guinea, stone artefacts carry a heavy burden for scholars seeking to write the prehistory of subsistence and land use. Efforts to squeeze information from these recalcitrant informal assemblages of obsidian tools have produced contradictory and unsatisfactory results. Although alternative approaches should certainly be sought to find ways to make these silent stones speak about topics that archaeologists want to hear, other important stories concerning social process and exchange are beginning to be told by ongoing research being developed in West New Britain. These new results raise broader questions about the social functions of humble stone tools in other parts of the world. [ABSTRACT FROM AUTHOR]

The article discusses the theory of exchange developed by economist Carl Menger and presented in his book "Principles of Economics." Menger demonstrated how exchange institutions arise in response to a desire to economize among humans. After describing Menger's thoughts on exchange institutions and their significance for economic development, the author examines aspects of Menger's theory that play a role in neoclassical price theory. Finally, he explains why Menger did not position the establishment of market price at the center of economic thought.

This article shows how a secret Santa gift exchange offers unique insights into the nature of generosity and charitable giving. In a dictator experiment modified with features similar to a secret Santa gift exchange, I find that individuals contribute less when their gifts are allocated such that each person gives to fewer recipients. The results are inconsistent with both altruism and warm glow, suggesting that players are motivated by something in addition to these conventional models of generosity. Several alternative models of generosity are shown to be consistent with the experimental findings, all of which imply that, in addition to any positive externalities, giving can also carry a negative externality. ( JEL H41, C92, D62) [ABSTRACT FROM AUTHOR]

This article examines intergenerational coresidence among rural farm families near Santarém, Pará, Brazil using survey data collected by the authors on 896 children whose parents live in 175 households on 150 farms. Married adult children, daughters, and the best educated are more likely to live off their parents’ rural property (vs. on the property). Results support arguments that coresidence results from the interests of children rather than the control that parents exert over children. These results have implications for our understanding of intergenerational relations in the developing world and for the future development of similar areas. [ABSTRACT FROM AUTHOR]

The article discusses the personal and impersonal concept of money. It refers the personal concept of money to the film "Money as debt," in suggests that the real basis of money is the signature of an individual with the promise to repay the personal credit. Bank credit is directly personal since it is linked to the trustworthiness of individuals. Money is also impersonal in such a way that it could retain its value when it moved between people who might not even known each other. The expansion of trade depends on the objectivity of the medium of exchange. Money could also separate public and domestic life which makes the impersonal world meaningful. Its power comes from the fluency of its value to buy something to promote the personal and impersonal meaning of life.

We report recent X-ray Fluorescence analysis of samples from neighboring basalt adze production locales situated in western Tutuila, American Samoa. These data allow for the successful reassignment of source locations to locally and regionally transferred adzes with greater precision, and highlights the relevance of intra-island source analysis when addressing inter-archipelagic exchange models. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The dominant theoretical framework for analysing currency domains, optimum currency area (OCA) theory, has a miserable record in explaining actual currency area formation, expansion or dissolution. Ministates use foreign currencies to avoid high transactions costs; otherwise countries want control over their monetary policy. Nations do not tolerate multiple currencies, because they complicate public revenue and expenditure decisions. These arguments regarding control of monetary policy and content of fiscal policy differ from the OCA theory's emphasis on a trade-off between the microeconomic transactions costs benefits of a wider currency area and the macroeconomic policy benefits of a narrower currency area. [ABSTRACT FROM AUTHOR]

We introducelack-of-recallof past transactions as an alternative assumption to anonymity in a model where trade is centralized. In environments where there is an intertemporal lack-of-double-coincidence of wants problem and lack-of-commitment, lack-of-recall can give rise to monetary equilibria that dominate nonmonetary outcomes in terms of welfare. [ABSTRACT FROM AUTHOR]

Joint exchange and raiding can emerge in a world of mutual raiding when the appropriated production is less valuable to the appropriator than to the defender and the defense is not too inferior to attack The amounts of resources allocated to production and raiding and the amounts of goods exchanged reciprocally are determined endogenously. The model reduces to pure exchange and pure raiding as special cases. Pure exchange emerges when the usability of appropriation is sufficiently low. Pure raiding emerges if the defense is sufficiently inferior to attack The results of the model are intermediate between the results of the two extreme cases. [ABSTRACT FROM AUTHOR]

By examining an online computer exchange, we find that sellers who place higher nonbinding ask prices have higher outstanding offers and remain on the exchange longer, suggesting a willingness to hold out for higher offers. Additionally, higher ask prices deter buyers from making offers. The results are stronger in thinner market segments, suggesting that gains from waiting for a high price are greater when buyers' tastes are idiosyncratic. These relationships are consistent with models in which buyers engage in costly search and suggest that online exchanges may not eliminate the frictions related to bilateral transactions. [ABSTRACT FROM AUTHOR]

Contract stipulations tend to be subject to commodity standards. Standards make it clearer what transactors have agreed upon. They also bring stipulations from different contracts under a common denominator. The lower the cost of measuring an attribute and the wider the range of its application, the higher the likelihood that the attribute will become subject to new standards. New standards are predicted to increase the role of contracts in agreements and to reduce that of long-term relations; to lower the prices of the commodities that use the standards; to increase the rate of theft of these commodities; and, by making it clearer what it is that parties exchange, to reduce the level of vertical integration. Finally, new standards propel markets toward perfect competition. [ABSTRACT FROM AUTHOR]

This article reports results from an experiment that examines whether an intrinsically worthless, “token” object serves as a medium of exchange in a laboratory implementation of Kiyotaki and Wright’s search model of money. The theory admits Nash equilibria in which the token object is or is not used as a medium of exchange. We find that subjects nearly always offer to trade for the token object when such a trade lowers their storage costs. However, subjects frequently refuse to offer to trade the token object for more costly–to–store goods when the theory predicts they should make such trades. [ABSTRACT FROM AUTHOR]