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Almost 100 years ago, Ludwig von Mises and Friedrich Hayek argued that a socialist state could not determine marginal cost prices and therefore could not allocate resources rationally. Oskar Lange and Abba Lerner responded with the market socialist model. Subsequent scholars have refined the model (Leeman, Roemer). Views on market socialism for an entire economy are mixed (Phelps, S h lei fer and Vishny, Roemer). We briefly review the debate. We argue that a form of market socialism exists and is especially important in education, health care, and health insurance. In these sectors, prices are often set or restricted centrally, while many providers are state-owned, nonprofit, or mutual firms. We argue in favor of applying market socialist principles to health care and to health insurance policy. In particular, we show that these principles imply that community rating of health insurance is a source of major inefficiencies and harmful regulatory pressure. We suggest moving in the market socialist direction --toward marginal cost pricing and therefore away from community rating. The desire for universal or expanded coverage can be fulfilled by explicit, politically transparent subsidies paid to consumers who are both poor and high risk. Comparative Economic Studies (2017) 59, 405-427. doi: 10.1057/s41294-0170027-3; published online 9 June 2017 Keywords: health insurance, market socialism, quasi-markets, pricing, community rating, new public management, corporatization JEL Classification: 113, P51, P27, 118, D47, B24, D02, L31, INTRODUCTION The socialist calculation debate began almost 100 years ago when Ludwig von Mises and Friedrich Hayek argued that a socialist state could not determine marginal cost prices and therefore [...]

Byline: K. Mehta (1) Keywords: parallel conduct; concerted practice; collective dominance; bidding markets; unilateral conduct; coordinated effects; divestment remedies; leniency/immunity programme; cartel coercer; market monitoring; collusion markers Abstract: These comments elaborate on the policy implications of theoretical models and compare them with competition law and practice. In regard to EU merger control it is discussed how case law has dealt with the creation of market structures that would maintain collusion. With respect to leniency programmes the deterrence and desistment incentives of actually implemented programmes are compared with theoretical results. Certain areas of research of particular relevance for enforcement are indicated in the conclusions. Author Affiliation: (1) Directorate General for Competition, The European Commission, Brussels, Belgium Article History: Registration Date: 09/09/2005 Online Date: 15/11/2005 Article note: The views expressed are my own opinions and do not reflect in any way those of the European Commission. JEL classification D43, L12, L41, K21

A theoretical framework that helps to deal with markets without suspending their calculative properties is presented .

Byline: Francois Degeorge (1,2,3), Boaz Moselle (2), Richard Zeckhauser (3) Keywords: risk; incomplete information Abstract: We analyze the risk level chosen by agents who have private information regarding their quality. We show that even risk-neutral agents will choose risk strategically to enhance their reputation in the market, and that such choices will be influenced by the mix of other agents' types. Assuming that the market has no strong prior about whether the agents are good or bad, good agents will choose low levels of risk, and bad agents high levels. Empirical evidence is gathered on 2462 firms over 24 years. The results support the model: agents of higher quality have less variable performance. Author Affiliation: (1) University of Lugano, via Giuseppe Buffi 13, CH-6904, Lugano, Switzerland (2) HEC School of Management (on leave), Paris (3) Centre for Economic Policy Research, London Article History: Registration Date: 02/10/2004

Byline: Jan Guldager JArgensen (1), Philipp J.H. Schroder (2) Keywords: real costs; tariff costs; industry concentration; market structure; integration Abstract: Economic integration has had ambiguous effects on industry concentration. The literature on the topic proposes various explanations for these empirical findings. This paper provides an additional theoretical argument. It shows that in a world of monopolistic competition, integration alone (modeled as a reduction of trade barriers) may exert opposing forces on industry concentration, depending on whether the barrier consists of real (frictional) or tariff costs. In particular, the Herfindahl index of industry concentration falls for a reduction in real costs, but rises for a reduction in tariff costs. The reason is that real barriers burn up resources, such that industry profitability is reduced, reducing entry, and resulting in fewer firms and a correspondingly higher concentration. Under a tariff barrier, the redistributed tariff revenue stabilizes industry profitability, resulting in more firms and a lower concentration. Author Affiliation: (1) Department of Economics, University of Southern Denmark, Campusvej 55, DK-5230, Odense M, Denmark (2) Aarhus School of Business and DIW, Berlin (3) Aarhus School of Business, Fuglesangs Alle 4, DK-8210, Aarhus V, Denmark Article History: Registration Date: 12/10/2004

Byline: Jesper Antelius (1), Lars Lundberg (2) Keywords: job turnover; market structure Abstract: Does internationalization mean increased reallocation of employment among plants and thus higher adjustment costs? This paper studies the reallocation of jobs among plants in the Swedish economy 1986--97 using micro data. It turns out that the rate of job turnover is high in industries with high rates of innovation and employment growth, and low in concentrated industries with limited competition. However, we find no evidence for the view that increased openness to international competition would increase job turnover. In fact turnover is lower in export oriented industries where foreign ownership is frequent. Author Affiliation: (1) Trade Union Institute for Economic Research (FIEF), University of Stockholm, Sweden (2) Trade Union Institute for Economic Research (FIEF), University of orebro, Sweden Article History: Registration Date: 12/10/2004

Research shows that analytical capabilities and market information processing practices improve for organizations demonstrating more favorable learning values. This in turn affects market-based outcomes. These findings are discussed within the framework of current literature and future research.

Byline: Christian Schultz (1) Abstract: This paper considers the effect of monopoly-promoting export cartels on domestic production. It is argued that export cartels facilitate tacit collusion by monitoring defections more efficiently. This slackens the incentive constraint of tacit collusion. Optimizing firms competing both in the domestic and export markets will often use the increased possibility for collusion in both markets. If the markets are not too different or there is constant returns to scale this is the case. Author Affiliation: (1) Centre for Industrial Economics and Institute of Economics, Studiestraede 6, DK, 1455, Copenhagen, Denmark Article History: Registration Date: 12/10/2004

The industrial networt paradign, or marketing as networks concept, is explored as to its theory, development, and knowledge production.

This study looks at export performance based on market orientation, finding that it positively affects change in export sales, export profits, and change in export profits. Three environmental variables that affect export performance are market turbulence, competitive intensity, and technological turbulence. Obtaining and responding to market intelligence are critical for success in exporting.

Contract design under incomplete information is often analysed in a bilaterally monopolistic setting. If the informed party's reservation value does not depend on its private information (its type), it is a standard result that the uninformed side offers 'low' types distorted contracts to reduce the information rent left to 'high' types. We challenge this result by embedding contract design in a matching market environment. We consider a market where players meet pairwise and where, in each match, either side may be chosen to make a take-it-or-leave-it offer. As frictions become sufficiently low, we find that the set of equilibria is independent of whether there is complete or incomplete information. In particular, all contracts are free of distortions.

This article examines the methods for managing industrial research and technological innovations in an increasingly complex market environment. Topics discussed include managing communities of creation, corporate governance, collaboration between firms, and overseeing intellectual property.

The increasing globalization of markets witnessed in recent years has been paralleled by growing research attention upon the internationalization of small and medium sized firms. In industrialized nations, a significant degree of dormant export potential has been identified in this firm size sector. The proliferation of extant literature can explain structural, behavioural and process-based aspects of export expansion. However, it remains that limited conceptual and empirical insights exist that explain the phenomena underlying pre-export decision making and behaviour. The present inquiry addresses this issue and investigates those obstacles that act upon domestic firms' intentions to enter overseas markets via the export channel. Specifically, the empirical study documented here establishes significant differences in the extent to which exporting obstacles discourage export engagement amongst varied groups of domestic firms considered in terms of their export intention. It also draws a similar comparison between such groups of non-exporting firms and those already engaged in export operations. The findings are interpreted and discussed in the light of current knowledge and attention is paid towards pertinent implications for export management and future research. Key words - exports, implementation, interfirm comparisons, internationalization, marketing, strategy

Entrepreneurial action, information intensity and market transformation Introduction 'Organizations of the world unite!' proclaim the theorists of the long-awaited, yet much anticipated information revolution and its comrade-in-arms, the global business [...]

Studies have revealed that technical trading rules produce profits only in periods of intervention, when monetary authorities are trading to influence exchange rates and are willing to lose money in pursuit of their objectives. It has been found that in international financial markets, investors usually focus their sights on the stocks and bonds of their own country since they have better knowledge of the financial markets in their home country than in foreign assets. This bias among investors prevents them from diversifying internationally., Asset pricing - the study of markets for financial assets including stocks, bonds, foreign currencies, and derivatives - is a field in which there is an intense and fruitful interaction [...]

A direct test on the equality of variance-covariance matrices and correlation matrices is used to study the intervalling effect on the intertemporal stability in stock return relationships in six emerging Asian markets and four developed markets. Empirical analysis indicates that diversifying into the Asian emerging markets is beneficial and that correlation matrices of stock returns are more stable than variance-covariance matrices. The patterns of stock market co-movement are more stable as the time period considered becomes shorter.

Market structure models are useful for identifying submarkets or for investigating the existence of submarkets in cases where within-group competition is more prevalent than across group competition. A model is developed that is based on a subset selection methodology that uses brand switching data to examine competitive market structures. This model has many uses, including testing for the existence of structure in the market and identifying a possible structure at the same time. It also tests for notable variety-seeking effects that can be found in the market and relates a degree of statistical confidence with the identified submarkets. This approach can by very useful to managers with unrealiable market structure information and also for conducting other types of analyses.

The NBER's Working Group on Market Microstructure met in New York on May 7. Working Group Director Bruce Lehmann, NBER and University of California, San Diego, organized the program along [...]

Many financial markets feature biases that reflect the economic value of uncertain contingent claims. Racetrack parimutuel betting is one such market for which sufficient data is available to examine such biases, with an estimated $10 million wagered annually in North America alone. Racetrack configuration results in an advantage for horses that break from post positions near the rail, especially when a track has a small circumference. Data from 3,345 races involving over $300 million in 1982, 1983, and 1984 wagers on exotic and win bets at Vancouver's Exhibition Park confirmed that a bias exists, but that price adjustments fully negate any potential gains resulting from the bias.

The effect of market structure on innovation incentives has been a controversial subject in economics since Joseph Schumpeter advanced the theory that competitive markets are not necessarily the most effective [...]