the early history of modern ecological economics abstract this paper provides a historical perspective for the discussion on ecological economics as a special field of research by studying the historical background of ecological economics the present discussions and tensions inside the field might become easier to understand and to relate to the study is inspired by other studies of the emergence of new research areas done by sociologists and historians of science and includes both cognitive and social aspects macro trends and the role of individuals the basis for the paper is a combination of literature studies and interviews with key researchers from the field the story opens with the emergence of the new environmental agenda in the 1960s which was influenced by the scientific development in biology and ecology then it is outlined how the environmental challenge was met by economics in the 1960s around 1970 the basic ideas of ecological economics were given modern formulations but it took a long gestation period from the beginning of the 1970s to the end of the 1980s before ecological economics took shape during this gestation period the personal relationships between the actors were formed and the meetings that were decisive for the formal establishment of ecological economics took place

sustainable de growth mapping the context criticisms and future prospects of an emergent paradigm article i nfo sustainable de growth is both a concept and a social grassroots northern movement with its origins in the fieldsofecologicaleconomics socialecology economicanthropologyand environmentalandsocialactivistgroups this paper introduces the concept of sustainable de growth by mapping some of the main intellectual influences fromthese fields with special focus on the francophone and anglophone thinking about this emergent notion we propose hypotheses pertaining to the appeal of sustainable de growth and compare it to the messages enclosed within the dominant sustainable development idea we scrutinize the theses contradictions and consequences of sustainable de growth thinking as it is currently being shaped by a heterogeneous body of literature and as it interacts with an ample and growing corpus of social movements we also discuss possible future paths for the de growth movement compared to the apparent weakening of the sustainable development paradigm

cooperative and noncooperative r d in duopoly with spillovers contrary to the usual assumption made in most oligopoly models relations among firms are seldom of a wholly cooperative or noncooperative type in many situations they compete in some fields while they cooperate in others an important example is the case of cooperative research efforts bringing fierce competitors together two types of agreement are observed first r d cooperation can take place at the so called precompetitive stage companies share basic information and efforts in the r d stage but remain rivals in the market place 1 a second type of agreement involves an extended collusion between partners creating common policies at the product level the usual justifications of this extension are the difficulties of protecting intellectual property the idea is then to allow partners who have achieved inventions together to also control together the processes and products which embody the results of their collaboration in order to recuperate jointly their r d investments 2 what could be expected from these types of agreement is a reduction in r d expenditures because of less wasteful duplication and a reduction of total production because of more reprinted from the american economic review 78 5 1133 1137 1988 center for operations research econometrics 1348 louvain la neuve belgium we are grateful to jean

the impact of competition on quality and prices in the english care homes market this study assesses the impact of competition on quality and price in the english care nursing homes market considering the key institutional features we use a theoretical model to assess the conditions under which further competition could increase or reduce quality a dataset comprising the population of 10 000 care homes was used we constructed distance travel time weighted competition measures instrumental variable estimations used to account for the endogeneity of competition showed quality and price were reduced by greater competition further analyses suggested that the negative quality effect worked through the effect on price higher competition reduces revenue which pushes down quality

sustainable consumption within a sustainable economy beyond green growth and green economies abstract in 1992 one unambiguous result of the unced conference was the need for changing consumption and production patterns with affluent countries taking the lead 20 years later at the 2012 uncsd little is left over and instead the green economy has been the theme pursued by the oecd the eu and other countries so the question needs to be answered if this is finally an attempt to put into practice what was promised 20 years ago or another diversion from what needs to be accomplished sustainable development is still a convincing concept if the original definition is taken avoiding the confusion caused by partisan interests reinterpreting the concept focussing on human needs fulfilment and respecting environmental limits it can still guide strong sustainable consumption green economy green growth on the other hand is a new terminology for what is known since 40 years as ecological modernisation it is indeed overdue but with its focus on efficiency and innovation it cannot guarantee to fulfil the brundtland sustainability criteria a factor analysis based on the i p a t formula demonstrates how optimistic the assumptions regarding future technologies must be to support the green growth concept consequently the authors pledge for a pragmatic risk avoiding approach by slimming the physical size of the economy this requires strong sustainable consumption including production as resource consumption which in turn requires a change of the societies institutional settings formal and informal mechanisms and orientations finally some elements of a strategy towards this end are pointed out with special emphasis on the role of non governmental organisations ngos through networking and advocacy they can both stimulate bottom up action and mobilise the pressure necessary for the institutional changes which are needed to mainstream strong sustainable consumption

circular economy at the micro level a dynamic view of incumbents struggles and challenges in the textile industry the circular economy ce has received considerable attention as an approach that promises to reconcile ecological systems and economic growth in spite of its increased popularity little is known about the implementation struggles of incumbent firms across industrial sectors furthermore although the notion of circular production systems is at the intersection of different research areas such as sustainable product design sustainable supply chains and reverse logistics knowledge on how these concepts combine to ease or impede firms transition towards circularity is scarce to shed light on these gaps i used multiple case studies from cradle to cradle certified companies in the textile industry in europe by employing qualitative research i identified a set of factors along the textile value chain from product design to take back and reprocessing that are crucial in expediting or delaying a firm s aspirations to develop a circular product the main contribution of this paper is the dynamic understanding of how certain collaborative supplier buyer innovation factors i e supply chain position power balance and a shared vision coupled with complex aspects in product design namely in basic materials architecture and functionality combine to determine the output speed and quantity of circular products to be sold taken back and ultimately regenerated

sophisticated entry in a model of spatial competition we analyze free entry equilibrium in a model of spatial competition in which locations of established firms are fixed and entrants profit expectations are rational our most interesting results concern large economies economies in which the number of firms is arbitrarily large when the average cost function is u shaped free entry equilibrium is unique socially optimal and characterized by zero profit in contract when there are no diseconomies of scale even large economies are stubbornly imperfect firms can earn substantial pure profit and free entry equilibrium is neither unique nor socially optimal

how do scholars approach the circular economy a systematic literature review abstract circular economy ce aims to overcome the take make dispose linear pattern of production and consumption proposing a circular system in which the value of products materials and resources is maintained in the economy as long as possible in recent years there has been a proliferation of scholars publications on the topic this study presents the results of a systematic literature review exploring the state of the art of academic research on ce the paper examines the ce body of literature with a systematic approach to provide an exhaustive analysis of the phenomenon with rigorous and reproducible research criteria the revisited material consists of 565 articles collected through the web of science and scopus databases and has been evaluated using specific structural dimensions to group literature into analytical categories starting from being a concept studied in connection with industrial ecology ce has slowly acquired its independent role in academic research framed mainly into environmental sustainability related studies as a result of policies implementation academic production is mainly concentrated in china and europe employing tools and methods for modelling processes and supporting decision making for ce implementation e g life cycle assessment and material flow analysis ce studies follow three main lines of action the first aims to change the social and economic dynamics at macro and administrative level the second to support firms in circular processes implementation at micro level to spread new forms of consumption and product design the third developed at meso level discusses industrial symbiosis experiences ce is associated with a variety of concepts and waste management emerges as the most relevant sub sector ce is also strongly connected with the concept of sustainability proposing ways to operationalize its implementation at the environmental and economic level while scholars only marginally consider social and institutional implications the most explored practices are those related to cleaner production aiming at reducing environmental impact and waste production along the life cycle of a product and optimizing the performance and efficiency of processes conversely studies on ce may devote greater attention to strategies for social and institutional changes able to transform the upstream process of production and consumption considering business model strategies scholars mainly focus on studying closing material loops strategy while slowing the loops which requires a radical change of consumption and production patterns is only marginally included with respect to ce implementation this study s findings highlight ce as an evolving concept that still requires development to consolidate its definition boundaries principles and associated practices

volunteering nonprofit entrepreneurial services abstract which member of a heterogeneous population will volunteer to provide the entrepreneurial services needed to found a nonprofit firm to privately provide a public good we develop a model of this decision the model predicts that nonprofit entrepreneurs will be those who incur relatively low private costs or get a relatively high private payoff less obviously they will tend to have a high discount rate and relatively long time horizons either due to their youth or due to their consideration of generations to come far into the future if the public good is one which individuals tend to contribute large amounts to such entrepreneurs will tend to be relatively wealthy if private contributions to the firm are relatively small the entrepreneur is more likely to come from the center of the wealth distribution

trends in the development of ecological economics from the late 1980s to the early 2000s abstract as the contributions to ecological economics are very diverse recent years have seen some discussion on both how to delimit the field and in which direction it should develop the intention with this paper is to contribute to the discussion by outlining important trends in the development of the field from the late 1980s to the early 2000s the study is inspired by other studies in the sociology and history of science in particular by the theoretical framework regarding scientific fields as reputational organizations which draws attention to both cognitive and social aspects of the formation of a field the basis for the paper is a combination of literature studies interviews with key researchers in the field and participant observations the paper outlines the characteristic cognitive features of ecological economics at the time of the birth of the field it is then described how the development in ecological economics was influenced by broader social factors during the following years and how the field was shaped by the inflow and outflow of different groups of researchers the emergence of different research programmes is outlined as is the organizational development finally the characteristics of ecological economics are summarized and the future prospects are briefly assessed

an experimental analysis of dynamic incentives to share knowledge knowledge sharing arrangements are an important part of the innovation process as they help firms acquire technological capabilities shorten development time and spread risk and cost a question central to the study of knowledge sharing arrangements is the impact of competition on cooperation while cooperation has the benefit of avoiding duplication it may have an adverse effect on the competitive advantage of a leading firm hence firms face a difficult challenge during the innovation process while deciding which components of it if any to carry out in collaboration with other firms this paper reports the results of controlled laboratory experiments which identify how the decision to form research joint ventures changes with both relative progress during the r d process and the intensity of product market competition the design is based on a modified version of erkal and minehart optimal sharing strategies in dynamic games of research and development research paper 1038 university of melbourne department of economics 2008 the results indicate that if expected profits are such that the lagging firms always stay in the race cooperation unravels as firms move forward in the discovery process and as monopoly profits become more attractive these results are generally consistent with the theoretical predictions jel c91 l24 o30 d81

market structure and prices the responses of hospitals in the uk national health service to competition abstract the internal market reforms to the uk national health service nhs are a model adopted in many health care systems they introduce competition in supply little is known about the impact of these reforms this paper examines the pricing responses of nhs suppliers to competition the incentives of the reformed system are analysed these indicate that prices should differ between buyers and markets these hypotheses are tested using data on spot market transactions between hospitals and health care buyers the results indicate considerable price variability but offer broad support for the hypotheses

appropriability and market structure in a stochastic invention model this research examines in the laboratory a class of game theoretic equilibrium models of private research and development r d we formulate a stochastic model of r d investment whose predictions can be examined by using laboratory experiments the noncooperative nash equilibrium of our operational model yields testable predictions about the effects of appropriability and market structure on r d the experimental results support the hypothesis that the degree of appropriability is inversely related to r d spending the results strongly support the hypothesis that an increase in group size yields greater aggregate r d the noncooperative nash equilibrium is shown to be a good predictor of central tendencies in the experiments

reputation and imperfect information abstract a common observation in the informal literature of economics and elsewhere is that is multistage games players may seek early in the game to acquire a reputation for being tough or benevolent or something else but this phenomenon is not observed in some formal game theoretic analyses of finite games such as selten s finitely repeated chain store game or in the finitely repeated prisoners dilemma we reexamine selten s model adding to it a small amount of imperfect or incomplete information about players payoffs and we find that this addition is sufficient to give rise to the reputation effect that one intuitively expects

exploring futures for amazonia s sierra del divisor an environmental valuation triadics approach to analyzing ecological economic decision choices in the context of major shifts in boundary conditions abstract this text presents a new methodological approach to ecological economic analysis employing georgescu roegen s flow fund theory of economic process it offers an alternative to monetary valuation based analyses and aims to contribute toward advancing work concerned with addressing complex ecological economic questions as complete wholes the methodology is demonstrated through reference to the empirical case of a proposed rail link between peru and brazil which would cut across the sierra del divisor of western amazonia connecting the pacific and atlantic coasts and further opening up the amazon commodity frontier in order to analyze the potential impacts of the rail link four flow fund representations of economic process two at the regional and two at the local level are developed in order to juxtapose two alternative political economy contexts that might govern the rail link s impacts in the region one where conservation is prioritized over cash income and one where it is not our results suggest that completion of the rail link under the current political economy context which prioritizes cash income over conservation is likely to have substantial negative consequences for forest conservation in both peru and brazil and for local livelihoods throughout the region

the effects of market concentration and excess demand on the price of nursing home care certificate of need laws and construction moratoria are policies designed to control government expenditures by limiting the number of nursing home beds in an area these policies also represent barriers to entry and can result in excess demand this study investigates the effect of market concentration and excess demand on private prices for nursing home care the author finds evidence that both factors are associated with higher prices because higher prices may cause private patients to exhaust their financial resources and become medicaid patients sooner than they otherwise would these policies may have had indirect cost increasing consequences copyright 1994 by blackwell publishing ltd

a matter of opinion how ecological and neoclassical environmental economists and think about sustainability and economics abstract the differing paradigms of ecological and neoclassical environmental economics have been described in various articles and books and are also embedded in different professional associations however we cannot take for granted that the paradigm debates described in the literature are actually mirrored in exactly the same way in the perceptions and opinions of researchers looking at sustainability from an economic perspective this paper presents empirical results from a german case study on how economists and others involved in sustainability research from different schools of thought think about the issues of sustainability and economics how they group around these issues how they feel about the current scientific divide and what they expect to be future topics of sustainability research we analyze the data using cluster analysis based on a literature survey we generated forty sustainability economics related statements and asked 196 sustainability researchers about their degree of agreement or disagreement with these statements in evaluating our survey results we discuss to what extent the clusters that we identified do or do not represent the two schools of thought of ecological and neoclassical environmental economics we also propose some fields of research that can help to bridge the gaps amongst sustainability economics researchers while clearly marking others that are more suitable for a scientific competition of ideas key results of the study are we identify two primary scientific clusters one clearly confirming the existence of the ecological economics school of thought and the other largely capturing the neoclassical environmental view yet there are some surprising exceptions both schools of thought share a conceptual definition of sustainability that is integrative in considering ecological societal and economic dimensions three pillar concept and is geared at preserving the development potentials of society we also find a shared critique of pure economic growth strategies in our sample these shared opinions may provide bridging concepts between the schools of thought also both clusters agree with respect to a wide range of future fields of sustainability economics research yet the research agenda of the ecological economics cluster contains a large number of additional topics primarily related to social distributional and evolutionary aspects of sustainable development strong divides between the clusters that seem to be more suitable for a scientific competition of ideas are primarily related to the question of how to achieve sustainability including appropriate environmental policies

optimal asymmetric strategies in research joint ventures abstract this paper identifies an overlooked implication of models of research joint ventures initiated by d aspremont and jacquemin 1988 even though the aggregate r d cost of identical firms in a research joint venture would be lowest if they invested equally to reduce subsequent production costs nonetheless members may often enlarge their overall joint profit by making unequal investments such a strategy raises costs in the investment stage but may create more than offsetting benefits in the production stage since industry profits are larger there when the firms are of unequal size when the consideration leading to asymmetry prevails we find that in contrast to previous work a research joint venture can raise welfare even when there are no spillovers

cooperative and noncooperative r d in experimental duopoly markets abstract we analyze the relation between technological spillovers and r d cooperation in a duopoly experiment based on the well known model of d aspremont and jacquemin for scenarios without and with full spillovers two noncooperative treatments are run one without and one with non binding communication possibilities and one cooperative treatment with binding contract possibilities we find that without technological spillovers binding r d contracts are needed for r d decisions to deviate from the subgame perfect nash r d level towards the cooperative level with full spillovers the possibility of non binding cheap talk may suffice to move closer to r d cooperation

the circular economy an interdisciplinary exploration of the concept and application in a global context there have long been calls from industry for guidance in implementing strategies for sustainable development the circular economy represents the most recent attempt to conceptualize the integration of economic activity and environmental wellbeing in a sustainable way this set of ideas has been adopted by china as the basis of their economic development included in both the 11th and the 12th five year plan escalating the concept in minds of western policymakers and ngos this paper traces the conceptualisations and origins of the circular economy tracing its meanings and exploring its antecedents in economics and ecology and discusses how the circular economy has been operationalized in business and policy the paper finds that while the circular economy places emphasis on the redesign of processes and cycling of materials which may contribute to more sustainable business models it also encapsulates tensions and limitations these include an absence of the social dimension inherent in sustainable development that limits its ethical dimensions and some unintended consequences this leads us to propose a revised definition of the circular economy as an economic model wherein planning resourcing procurement production and reprocessing are designed and managed as both process and output to maximize ecosystem functioning and human well being

an empirical evaluation of the determinants of research joint venture formation this paper empirically analyses the determinants of rm participation in research joint ventures rjvs a review of the theoretical literature highlights the di culty of identifying testable hypotheses using a large database of european rjvs we estimate a participation equation at the rm level using the logit procedure we nd that sectorial r d intensity industry concentration rm size technological spillovers and past rjv participation positively in uence the probability of forming rjvs by contrast patents eiectiveness reduce the likelihood of rjv formation last country xed eiects suggest that rms from larger countries are less likely to participate in cross border rjvs i introduction research joint ventures rjvs are agreements whereby rms decide to share technological knowledge while in principle continuing to compete against each other in the product market the aim of this paper is empirically to identify the rm and industry characteristics that determine rjv formation recent theoretical contributions have highlighted the complex mechanisms that underlie rjv participation first rjvs involve the internalisation of technological spillovers and r d cost sharing as well as the assimilation of knowledge that may be of strategic importance

what is ecological economics ecological economics addresses the relationships between ecosystems and economic systems in the broadest sense these relationships are the locus of many of our most pressing current problems i e sustainability acid rain global warming species extinction wealth distribution but they are not well covered by any existing discipline environmental and resource economics as it is currently practiced covers only the application of neoclassical economics to environmental and resource problems ecology as it is cur rently practiced sometimes deals with human impacts on ecosystems but the more common tendency is to stick to natural systems ecological economics aims to extend these modest areas of overlap it will include neoclassical environmental economics and ecological impact studies as sub sets but will also encourage new ways of thinking about the linkages between ecological and economic systems we have chosen the name ecological economics for this area of study because it implies a broad ecological interdisciplinary and holistic view of the problem of studying and managing our world the earth from space cover of the journal reflects this global holistic perspective we did not intend to imply with the ordering of the two words in the title that the journal is mainly an economics journal it is intended to be a new approach to both ecology and economics that recognizes the need to make economics more cognizant of ecological impacts and dependencies the need to make ecology more sensitive to economic forces incentives and constraints and the need to treat integrated economic ecologic systems with a common but diverse set of conceptual and analytical tools there was much discussion of other possible names such as economic ecology or ecology and economics or some conjoining of the two words that to me end up being confusing tongue twisters like ecolnomics or econology but ecological economics seemed to get closest to the mean ing we desired while still being evocative to the uninitiated

why ecological economics needs to return to its roots the biophysical foundation of socio economic systems abstract ecological economics was formally established in 1989 with the ambitious vision of developing a new economic paradigm embedding the social and economic systems in the biophysical world ecological economics had its roots in the biophysical understanding of economics that pioneers of the field georgescu roegen 1971 odum 1971 daly 1977 jansson 1984 martinez alier 1987 and others developed while studying the thermodynamic bedrocks shared by natural and social systems subsequently however ecological economics has explicitly but controversially adopted a big umbrella approach to methodological pluralism focusing more on topics such as valuing nature and its functions rather than attempting to understand and quantify the biophysical roots of economic activities biophysical economics was established in response to these concerns focusing more on developing analyses and models of the transformations of nature to generate wealth and approached mostly from an energy and material flows perspective the present paper argues that to achieve its original vision ecological economics must return to its biophysical roots collaboration between the two fields will help the next generation of thinkers to address the socio ecological challenges of the 21st century requiring an energy transformation called for by aspirations such as the green new deal and the un sustainable development goals

who is afraid of pirates an experiment on the deterrence of innovation by imitation abstract in the policy debate intellectual property is often justified by what seems to be a straightforward argument if innovators are not protected against others appropriating their ideas incentives for innovation are suboptimally low now in most industries and for most potential users appropriating a foreign innovation is itself an investment decision fraught with cost and risk nonetheless standard theory predicts too little innovation arguably the problem is exacerbated by the sensitivity of innovators to fairness imitators do get a free lunch after all we model the situation as a game and test it in the lab we find more appropriation but also more innovation than predicted by standard theory in the lab the prospect of giving imitators a free lunch does not have a chilling effect on innovation this even holds if innovation automatically spills over to an outsider and if successful imitation reduces the innovator s profit beliefs and the analysis of experiences in the repeated game demonstrate that participants are sensitive to the fairness problem but this concern is not strong enough to outweigh the robust propensity to invest even more in innovation than predicted by standard theory the data suggest that this behavior results from the intention not to be outperformed by one s peers

energy management on industrial parks in flanders in the race against climate change aiming for low carbon competitiveness flanders has initiated a carbon neutrality strategy on industrial parks building towards energy efficient buildings and processes acting as a stimulus for the production and consumption of green electricity however premises and internal process optimisation on industrial parks is not considered sufficient to limit greenhouse emissions in flanders structural transition is called for aiming for industrial clustering and energy autonomy based on renewables therefore the concept of industrial symbiosis is analysed to determine how it could improve the energy related carbon management on industrial parks this article explores the literature on industrial symbiosis and eco industrial parks searching for specific energy strategies and is illustrated with case studies energy management on industrial parks can be integrated in the entire development process and park management maximising efficiency is a promising local optimisation issue in which business should be engaged stimulated and facilitated by clustering buildings and processes by energy exchange collective production and joint contracting of energy services local synergies can be intensified yet uncertainty and variability in time of energy consumption can keep developers from tailoring industrial park design and utilities instead flexibility and solidity could be gained and the offer of business space could be diversified supported by a persevering issuing procedure to join similar and matching energy profiles energy management on industrial parks in flanders has only recently started but is expected to gain professionalism however further research is needed on this flexible design and thermal planning

waste management policies for industrial symbiosis development case studies in european countries industrial symbiosis is emerged as a self organizing business strategy among firms that are willing to cooperate to improve their economic and environmental performance the adoption of such cooperative strategies relates to increasing costs of waste management most of which are driven by policy and legislative requirements development of is depends on an enabling context of social informational technological economical and political factors the power to influence this context varies among the agents involved such as the government businesses or coordinating entities governmental intervention as manifested through policies could influence a wider range of factors and we believe this is an area which is under researched this paper aims to critically appraise the waste policy interventions from supra national to sub national levels of government a case study methodology has been applied to four european countries i e denmark the uk portugal and switzerland in which is emerged or is being fostered the findings suggest that there are commonalities in policy instruments that may have led to an is enabling context the paper concludes with lessons learnt and recommendations on shaping the policy context for is development

economy and environment a theoretical essay on the interdependence of economic and environmental systems preface notation guide 1 introduction part i the physical economy environment system 2 closed physical systems a model 3 structure and time in the physical system 4 technological change and the environmental constraints to physical growth part ii the economic system 5 the price system 6 prices property and the environment 7 economic conflict and environmental change part iii environmental strategies in an evolutionary economy environment system 8 time uncertainty and external effects 9 the market solution 10 the stationary state 11 conclusions references index

noncooperative versus cooperative r d with endogenous spillover rates this paper deals with a general version of a two stage model of r d and product market competition we provide a thorough generalization of previous results on the comparative performance of noncooperative and cooperative r d dispensing in particular with ex post firm symmetry and linear demand assumptions we also characterize the structure of profit maximizing r d cartels where firms competing in a product market jointly decide r d expenditure as well as internal spillover levels we establish the firms would essentially always prefer extremal spillovers and within the context of a standard specification derive conditions for the optimality of minimal spillover

cooperative and noncooperative r d in duopoly with spillovers comment claude d aspremont and alexis jacquemin 1988 employ a simple yet elegant symmetric duopoly model of r d and spillovers to compare several equilibrium concepts these concepts include 1 the two stage noncooperative solution 2 the two stage mixed game 3 the two stage fully cooperative solution 2 and 4 the social planner s optimum 3 for each of the cases stated above they computed the equilibrium levels of output q q1 q2 and r d xl x2 x and the required second order conditions they report i for large spillovers i e b 0 5 x x x and q q q q and ii for small spillovers i e 3 x 2x x and q q q q where x denotes a firm s r d level q denotes total industry output denotes the social optimum denotes the fully cooperative model the noncooperative two stage case and the mixed game 3 is the spillover parameter here we show that comparing the pure cooperative and the pure noncooperative solutions as defined by d aspremont and jacquemin is only meaningful when the noncooperative solution is stable that is when spillovers are not too small we find that for very small spillovers in our example this occurs when 3 0 17 the d aspremont jacquemin observation holds because the noncooperative model is unstable the importance of this result rests on the fact that even though the output reaction functions cross correctly when 3 0 17 the r d reaction functions do not when 0 17 0 41 stability obtains but r d levels are higher in the noncooperative case than the fully cooperative one for large spillovers the d aspremont jacquemin result is confirmed moreover we find that the introduction of spillovers in the case of the noncooperative model tends to promote stability in the case of the cooperative model however as the level of spillovers is increased an equilibrium ceases to exist

mental health market power and governance this paper is concerned with the pricing behaviour of providers of residential care for people with mental health problems two aspects of pricing were considered first are there differences between providers market power and their actual mark up rates e g due to differences in motivation second do the different governance arrangements used in sectors of the industry such as unified public and non profit organisation and private bilateral contracting affect pricing behaviour a theoretical model was developed to underpin the empirical analysis of 496 residents in 112 mental health care facilities private bilateral organisation was found to be associated with comparatively lower potential price cost mark up but a greater propensity to use this power to make profits surpluses

equilibrium and optimal size of a research joint venture in an oligopoly with spillovers this paper analyzes a simple oligopoly model with information spillovers firms spend on r d to affect their costs of production the main finding is that depending on the magnitude of the spillover the market may not provide enough incentives for the optimum degree of cooperation to take place it is shown that the equilibrium size of a research joint venture is usually less than the optimum size which requires all firms to participate in the research joint venture the policy implications of this result are that there should be encouragement for firms competing in high technology industries to form industry wide cooperative agreements copyright 1995 by blackwell publishing ltd

promises and conventions an approach to pre play agreements abstract i analyze how informal agreements can be sustained by moral emotions with regard to a large class of two player games specifically i assume that people feel guilty if they breach an agreement and that the guilt increases according to the degree of the harm inflicted on the other a central insight is that it is easier to sustain efficient informal agreements if actions are strategic complements than if they are strategic substitutes i complement this general insight by studying two specific cases where negotiators face uncertainty about the breach of the agreement i show that while the optimal agreement in a game with strategic substitutes must compromise on surplus maximization and efficiency the optimal agreement in a game with sufficiently strong strategic complements tends to maximize both the surplus and the probability of compliance especially if the game is symmetric

the second generation of ecological economics how far has the apple fallen from the tree this paper examines the discourse produced in the academic journal ecological economics from its inception in 1989 and compares this discourse with that of the field of environmental economics i used methods for discourse analysis alceste and iramuteq on 6308 abstracts of papers published in four journals namely ecological economics the journal of environmental economics and management environmental values and environmental and resource economics published between 1989 and 2013 the results suggest that the discourses of ecological economics and environmental economics have grown closer over time the semantic classification of co occurrent terms used in ecological economics indicates increasing significance of the notions of ecosystem services and of monetary valuation i argue that this trend is parallel to costanza s career path which suggests the rise of a tacit recognition of the new environmental pragmatic scientific approach i conclude with some of the implications for ee of promoting this kind of discourse to such an extent

econ 101 in need of a sustainability transition abstract ecological economics was one of the first of a number of scientific communities to develop transdisciplinary understandings of the sustainability challenges faced by society as a field with economics in its name ecological economics differs from the other communities and should face the particular task of contributing to the development of a new economics for economics to promote sustainability transitions it is not enough to call for more pluralism a new basic structure of economic knowledge should be developed in order to provide the foundation for a sustainability transition to econ 101 this paper argues that the performativity of economics needs to change and proposes a way of structuring econ 101

an ecological monetary theory abstract while money is critical to the modern world ecological economics does not have a theory of money that is applicable to its theoretical framework and policy prescriptions accordingly the field often defers to an orthodox conception of money that is historically inaccurate and ontologically inconsistent the dualized nature of western philosophy informs orthodoxy by defining money according its function as a medium of exchange this conceptualization creates logical and historical problems that can be addressed by exploring an interdisciplinary literature that defines money according to its nature as a social relation expressed in a unit of account this paper develops an ecological monetary theory that is simultaneously rooted in a socio historical understanding of money s nature and in an ontology of social and ecological embeddedness such a theory provides ecological economists and others concerned with social and ecological equity with a framework from which to address monetary systems and policy

the gains from merger or collusion in product differentiated industries a merger in an industry with differentiated products increases the market power of the merging firms to the extent that their products are close substitutes and that other firms produce only more distant substitutes such a merger makes the residual demand curve of each partner steeper by shifting each in the direction of the industry demand curve 2 the extent of this increase in market power depends upon the own elasticity of demand for each merging firm s product as well as the cross elasticity of demand for each with all other firms products as a result evaluating the effect of a merger between two firms with n 2 other competitors would seem to require the estimation of at least n2 parameters all of the price elasticities of demand a formidable task that extremely difficult estimation task is unnecessary however the necessary information is contained in the slopes of the two single firm residual demand curves before the merger and the extent to which the merged firm will face a steeper demand curve for example suppose a merger between two u s brewing firms say pabst and anheuser busch were proposed it is not particularly important to determine whether it is competition from miller or competition from stroh or from heileman or which puts the most effective brake on anheuser busch s pricing only the total effect of these other firms and the particular effect of competition from pabst are of interest this paper proposes econometric procedures for estimating the demand system that merger partners will face based only on pre merger data the key to the procedures is that the effects of all other firms in the industry are summed together formally we start with a model of an n firm product differentiated industry manipulation of the model removes the prices and quantities of all but two firms this reduces the dimensionality of the problem to manageable size rather than an n firm demand system we estimate a two firm residual demand system in this way the technique extends our econometric method for

cooperation spillovers and price competition in experimental markets i introduction both competition and cooperation are important for the successful functioning of many economic systems for example firms compete in markets but they also cooperate with one another through arrangements such as research joint ventures lobbying cooperative marketing agreements and strategic alliances in this paper we use experiments to examine how competitive interactions affect agents propensity to cooperate we are interested in studying spillovers that may involve cooperation in one domain such as a research joint venture and competition in another such as in a market 1 cooperation could weaken competition perhaps promoting collusion or market competition could reduce incentives for non market cooperation these behavioral spillovers could go in either direction they are distinct from another type of spillover through knowledge externalities that occur in research and development r d when the innovator cannot fully appropriate the gains to innovation leading potentially to a socially inefficient level of research debondt 1996 2 as discussed below behavioral spillovers have been shown in experiments to increase cooperation in otherwise competitive environments for example through establishing cooperative precedents a large body of theoretical research has focused on firms cooperating in research joint ventures and how this impacts competition in output markets for example cooper and ross 2009 examine the mechanism by which agreements to cooperate in one market can have negative effects on competition in other markets even in situations when these markets are not linked via costs or demand cabral 2000 shows that product market prices are affected by r d agreements between firms caloghirou ioannides and vonortas 2003 lambertini poddar and sasaki 2003 and poyago theotoky 2007 also discuss the impact of forming research joint ventures on product markets and cartel formation 3 empirical work using field data has provided creative indirect evidence on the collusive potential of research joint ventures by exploiting natural policy experiments although the extent of this evidence is limited goeree and helland 2010 for example show that research joint ventures facilitate collusion because they became less popular following an enforcement policy change leniency that made collusion less attractive policy experiments such as these are often required since systematic collusion often goes undetected by authorities duso roller and seldeslachts 2010 also examine the link between research joint ventures and collusion using data from the u s national cooperation research act that granted certain research joint ventures milder antitrust scrutiny they find that horizontal research joint ventures lead to more collusion than vertical joint ventures our work provides complementary and more direct evidence since in the laboratory we can observe the level and sustainability of tacit and explicit collusion and can therefore circumvent the measurement and endogeneity issues that are often prevalent in field data the specific research goals of this study are the following first we wish to examine if agents take advantage of available gains from cooperation in the presence of payoff uncertainties that arise from stochastic innovation success second we are interested in learning if a behavioral spillover of cooperation can lead to collusion in markets or whether competition in markets reduces non market cooperation these notions of cooperation concern contributions to joint r d projects or collusion in price setting and are defined independently of any communication opportunities therefore our third goal is to determine how this interaction between cooperation and competition is affected by the introduction of non market communication opportunities finally we will measure the externalities from r d cooperation to non innovators in the market

can de growth be considered a policy option a historical note on nicholas georgescu roegen and the club of rome abstract at a few months interval georgescu roegen s the entropy law and the economic process 1971 and club of rome s limits to growth 1972 were published both emphasized the dangers of economic growth and both drew negative reactions from mainstream economists relying on archival evidence we show that georgescu roegen and the club of rome developed strategies of mutual support which would present them at first view as natural allies georgescu roegen actually became a member of the club of rome while dennis meadows acknowledged the influence of georgescu roegen s ideas on the team of authors of limits to growth but in the late 70 s the gap widened between georgescu roegen s adamant defense of de growth and the club of rome s less firm view of sustainable growth this paper explores the process leading to the self isolation of georgescu roegen by showing that beyond a shared acknowledgment that economic and biologic systems were interdependent technological optimism and ambitions for the global management of growth were central to the club of rome while georgescu roegen s personal history led him to ignore those practicalities and judge that de growth was inescapable

living to spend another day exploring resilience as a new fourth goal of ecological economics abstract the three main goals of ecological economic theory seek to predict and prevent system breakdowns however chaos theory and human uncertainty ignorance guarantee that shocks breakdowns and catastrophes like covid 19 will increasingly occur due to converging environmental resource crises the challenge then is designing a resilient safe fail economy that can endure adapt to and successfully recover from breakdowns and avoid collapse to date little attention has been paid in ecological economics to the implications of resilience for broader economic decisions affecting the design of global civilization this paper provides a general introduction to resilience and an argument for why it should become a much larger focus of ecological economic research going forward five arguments are advanced for why resilience should not be subsumed under an existing goal including that efforts to build resilience have the potential to both complement and contradict the other three goals especially efficiency the resilience alliance s adaptive cycle highlighting the cost to resilience of increasing scale and complexity meshes readily with ecological economist s own critiques of growth encouraging increased collaboration between these transdisciplines the need to further study these tensions provides justification for adding resilient design as a distinct fourth policy goal to core ecological economic theory

predation reputation and entry deterrence abstract economists often argue that predatory practices are irrational since there exist cheaper or more certain means to gain or maintain a monopoly our gametheoretic equilibrium analysis suggests that if a firm is threatened by several potential entrants then predation may be rational against early entrants even if it is costly when viewed in isolation because it yields a reputation which deters other entrants asymmetric information plays a crucial role in our analysis since it provides the rationale for entrants to base their expectations of the firm s future behavior on its past actions the analysis also suggests methods to treat general reputational phenomena

ecological economics in relation to democracy ideology and politics two recent studies and policy documents are discussed in the present article one is a un report prepared by experienced politicians as input into the 2012 rio de janeiro conference the other a st

the history of ecosystem services in economic theory and practice from early notions to markets and payment schemes article i nfo this paper reviews the historic development of the conceptualization of ecosystem services and examines critical landmarks in economic theory and practice with regard to the incorporation of ecosystem services into markets and payment schemes the review presented here suggests that the trend towards monetization and commodification of ecosystem services is partly the result of a slow move from the original economic conception of nature s benefits as use values in classical economics to their conceptualization in terms of exchange values in neoclassical economics the theory and practice of current ecosystem services science are examined inthelight ofthis historicaldevelopment from thisreview we conclude thatthefocus onmonetary valuation and payment schemes has contributed to attract political support for conservation but also to commodify a growing number of ecosystem services and to reproduce the neoclassical economics paradigm and the market logic to tackle environmental problems

a bibliometric account of the evolution of ee in the last two decades is ecological economics becoming a post normal science abstract in ecological economics the debate on formalism and formalization has been addressed in the context of a lively discussion on ecological economics as a post normal versus normal science using ecological economics ee as a seed journal and applying bibliometric techniques to all 2533 the articles published in ee from january 1989 to december 2009 we analyze the evolution of the field of ecological economics aiming to shed light on this debate we observe the predominance and increased relevance of certain research topics methodological issues policies governance and institutions and valuation moreover collective action technical change and the environment and values stand as emergent themes of research finally we note that ecological economics experienced an empirical turn reflected in a shift away from exclusively formalized papers towards exclusively empirical and to a larger extent formal and empirical ones the combination of the prominent and emergent topics and the empirical turn mirrors the increasing awareness among researchers in the field of the need to address a key specificity of ecological economics the interdependence of the economic biophysical and social spheres on this basis we argue that at least through the lens of ee ecological economics has evolved towards a post normal science

r d cooperation or competition abstract the economic literature provides empirical evidence of the existence of technological cartels such as research joint ventures or deliberate sharing of technological knowledge our aim is to answer to the questions i is the creation of technological cartels beneficial from a social welfare point of view and ii do the firms have private incentives to form such cartels we depart from the approach adopted in the literature by considering a dynamic model and allowing for the possibility that the firms are asymmetric the results show the importance of the degree of existing technological spillovers and stress the differences between the symmetric and asymmetric cases

racing with uncertainty a patent race experiment this paper presents an experimental test of the multi stage patent race model of harris and vickers rev econ stud 54 1987 1 tied competitors invested more when nearer the end of the race but this may have followed from a more general and unexplained pattern of a positive correlation between investment and progress in the race the relationship between investment and gap between competitors was mostly not as predicted also leaders did not invest more than not heavily lagging followers and the race did not approach monopoly as the gap between competitors widened overall the evidence brings only limited support to the theory

the history and current applications of the circular economy concept abstract the challenges of balancing industrial development environmental and human health and economic growth in china and elsewhere in the world are drivers for recent resource use and low carbon development strategies that include the application of the circular economy ce concept a central theme of the ce concept is the valuation of materials within a closed looped system with the aim to allow for natural resource use while reducing pollution or avoiding resource constraints and sustaining economic growth the objectives of this study are 1 to review the history of the ce concept to provide a context for 2 a critical examination of how it is applied currently thematic categories are used to organize the literature review results including policy instruments and approaches value chains material flows and products and technology organizational and social innovation the literature review illustrates the variability in ce project success and failure over time and by region ce successes key challenges and research gaps are identified the literature review results provide useful information for researchers as well as multi stakeholder groups who seek to define the ce concept in practical terms and to consider potential challenges and opportunities it presents when implemented

consequences of local variations in social care on the performance of the acute health care sector this article uses 2 years worth of data from 150 english local authorities to quantify the extent to which local variations in social care resources are associated with variations in performance of the acute sector and particularly on the rates of hospital delayed discharges and hospital emergency re admissions results indicate that social care services play a significant role in explaining local variations in acute sector performance

the neoclassical production function as a relic of anti george politics implications for ecological economics abstract widespread support for henry george s land tax proposal prompted a backlash from wealthy landowners who focused their political efforts on tax policy the backlash corresponded chronologically with the development of neoclassical economics and land barons became active in the establishment of academic economics institutions in the united states whereas the classical economists frequently referred to the factors of production as land labor and capital neoclassical textbooks appearing in the 20th century increasingly ignored land and provided a production function y f k l in which capital and labor were the only factors explicitly identified neoclassical authors had several possible reasons for using a two factor production function but the political influence on neoclassical economics during its formative stages was conducive to avoiding reference to land when discussing factors of production an emphasis on land would have invited scrutiny of land rents for tax purposes ecological economics has evolved as a response to the shortcomings of neoclassical economics in dealing with the environmental perils of economic growth one of those shortcomings is the capital labor production function which hides the importance of land and natural resources ecological economists have developed production functions that are more ecologically oriented and one of them is explained herein

assessing the degrowth discourse a review and analysis of academic degrowth policy proposals abstract debates on ecological and social limits to economic growth and new ways to deal with resource scarcity without compromising human well being have re emerged in the last few years central to many of these is a call for a degrowth approach in this paper a framework is developed to support a systematic analysis of degrowth in the academic literature this article attempts to present a clearer notion of what the academic degrowth literature explores by identifying organising and analysing a set of proposals for action retrieved from a selection of articles the framework is applied to classify proposals according to their alignment to ecological economics policy objectives sustainable scale fair distribution and efficient allocation type of approach top down versus bottom up and geographical focus local national or international a total of 128 peer reviewed articles focused on degrowth were reviewed and 54 that include proposals for action were analysed the proposals identified align with three broad goals 1 reduce the environmental impact of human activities 2 redistribute income and wealth both within and between countries and 3 promote the transition from a materialistic to a convivial and participatory society the findings indicate that the majority of degrowth proposals are national top down approaches focusing on government as a major driver of change rather than local bottom up approaches as advocated by many degrowth proponents the most emphasised aspects in the degrowth literature are related to social equity closely followed by environmental sustainability topics such as population growth and the implications of degrowth for developing nations are largely neglected and represent an important area for future research moreover there is a need for a deeper analysis of how degrowth proposals would act in combination

simultaneous allocation of bundled goods through auctions assessing the case for joint bidding we study the costs and benefits of allowing joint bidding in multiple simultaneous first price sealed bid auctions for bundled goods with private values joint bidding raises the prospect of higher allocative efficiency but also reduces the number of bidders resulting in an ambiguous net impact on seller revenue the research was carried out using laboratory experiments in which groups of up to six buyers competed for eight bundles of two separable goods each the main results show that in our experimental environment allowing joint bidding increases efficiency by 11 3 and revenue by 9 4 the research has immediate applications to the sale of public forest stands that arbor a mixture of species for this reason we explore how the results are affected by excess supply the presence of dominant firms and the removal of an allocation rule requiring multiple bidders under certain circumstances

the shallow or the deep ecological economics movement ecological economics and its policy recommendations have become overwhelmed by economic valuation shadow pricing sustainability measures and squeezing nature into the commodity boxes of goods services and capital in order to make it part of mainstream economic financial and banking discourses there are deeper concerns which touch upon the understanding of humanity in its various social psychological political and ethical facets the relationship with nature proposed by the ecological economics movement has the potential to be far reaching however this is not the picture portrayed by surveying the amassed body of articles from this journal or by many of those claiming affiliation a shallow movement allied to a business as usual politics and economy has become dominant and imposes its preoccupation with mainstream economic concepts and values if instead ecological economists choose a path deep into the world of interdisciplinary endeavour they will need to be prepared to transform themselves and society the implications go far beyond the pragmatic use of magic numbers to convince politicians and the public that ecology still has something relevant to say in the 21st century author s abstract

perspectives on positive political economy this volume serves as an introduction to the field of positive political economy and the economic and political processes with which it is concerned this new research tradition is distinct from both normative and historical approaches to political economy grounded in the rational actor methodology of microeconomics positive political economy is the study of rational decisions in a context of political and economic institutions more analytical than traditional approaches it is concerned with the derivation of principles and propositions against which real world experience may be compared its focus is on empirical regularities and its goal is theoretical explanation the field has focused on three main areas of research models of collective action constraints on competitive market processes and the analysis of transaction costs developments in all of these areas are covered in the book the first part of the volume surveys the field while the second part displays positive political economy at work examining a variety of subjects the final part contains essays by leading political economists on the theoretical foundations of the field

structured pluralism in ecological economics a reply to peter soderbaum s commentary abstract peter soderbaum argues in his commentary concerning my article on sustainability economics remig 2015 for more open and radical ecological economics i agree with that statement however i reject soderbaum s interpretation that my arguments foster mainstreamed ecological economics or dictatorship in my critique of sustainability economics i raised several issues that have remained unspecified and that potentially lead to unsustainable development patterns once put into practice soderbaum does not reply to these conceptual challenges of sustainability economics in this commentary i argue that structured pluralism dow 2004 is a constituent element of ecological economics i welcome peter soderbaum s proposal for a discussion about the definition of economics and suggest to rely on ronald coase s proposal to define economics as a science that studies the working of the economic system i conclude that sustainability economics in its current form is closer to neoclassical than ecological economics

economic schools of thought on the environment investigating unity and division how do ecological and heterodox economists differ if at all from each other and from neoclassical economists addressing environmental problems in 2009 we probed this question by conducting an international survey across these communities namely at conferences of the european society for ecological economics the association for heterodox economics and the european association of environmental and resource economists the research was designed to gain insight into the extent to which ecological economics can be described as heterodox and a distinct field from orthodox environmental and resource economics conflicting visions of ecological economics have led to a prevalence of neoclassical articles and thought mixed in amongst more heterodox work we introduce a novel classification of work in the field of environmental policy in order to test for the existence of differences in terms of methodological and ideological approaches how heterodox economists understand environmental issues is also an important question to answer if there is to be more collaboration between them and ecological economists the findings have implications for cooperation and the future direction of both ecological and heterodox economics

markets and hierarchies and mathematical economic theory over the past decade transaction cost economics has been partially translated in the more mathematical language of game theory and understanding of the costs of transactions has been deepened refined and extended but the translation is incomplete a great deal of human behaviour is missed and doing game theory with more life like models of individuals will bring theory closer to phenomena transaction cost economics particularly the economics of relational contracts provides a major arena for these developments since the important issues of bounded rationality and individual behavior are central to the topic copyright 1996 by oxford university press

using an optimization model to evaluate the economic benefits of industrial symbiosis in the forest industry in this work a model comprising a pulp mill a sawmill a district heating network and a biofuel upgrading plant is used to demonstrate how the mind method an optimization method based on mixed integer linear programming can be used to evaluate industrial symbiosis in the forest industry using this method both energy and material flows on both the supply and the demand side can be studied simultaneously the method can be used to find improvements in the structure of the modelled system to find the optimal operational strategy of a given system and to evaluate and compare different systems the total system costs for stand alone cases and integrated industrial symbiosis system configuration are compared generating results that can be used as decision support when planning industrial symbiosis initiatives in the forest industry the results of this study showed that there are financial benefits to industrial symbiosis compared to the same system operated in stand alone mode and that the industrial symbiosis configuration generates a more stable system however it is difficult to generalize the results from a case study and the main conclusion drawn is that it is possible to show that industrial symbiosis has economical benefits although the magnitude of these benefits needs to be evaluated from case to case

schumpeterian competition in experimental markets abstract we report on a series of laboratory experiments that capture key elements of research and development r d rivalry the experimental environment has a small number of sellers who compete in terms of pricing and production decisions and in terms of cost reducing r d rewards for innovation depend on the profitability of product market competition the experiments capture a kind of dynamic schumpeterian competition there is a sharp contrast in experimental results between monopolies and four seller competitive markets aggregate r d is higher under competition than under monopoly and prices follow marginal cost reductions much more quickly under competition than under monopoly the paper examines market performance in the experiments and the sources of market performance problems

bridging theories on environmental governance insights from free market approaches and institutional ecological economics perspectives abstract due to methodological problems and their practical limitations the criticism of neoclassical environmental economics is increasing the goal of this paper is to stress the differences and similarities between the two competing alternative approaches institutional ecological economics and free market approaches to environmental protection to encourage their interactions towards a possible synthesis in the future

the identity of ecological economics retrospects and prospects the paper first reveals the relevance of ecological economics in the time of a triple crisis ecological social and economic and promotes it as a distinct paradigm comprised of two interconnected and interdependent aspects the qualitative framework within which it operates and the quantitative models and techniques it uses to observe ecosystem resilience measure progress towards sustainability and evaluate policies while acknowledging the progress that has so far been made the paper argues that divergences in understanding the meaning and content of ecological economics hinder its effectiveness and influence on real world policy making and calls for a unified framework as a common ground that would strengthen the field and direct research the implication of this position then follows pointing out what has so far been missing from the ecological economics analysis and what should be done for it to become a more problem oriented and policy relevant alternative copyright oxford university press

unraveling the veil of fuzziness a thick description of sustainability economics this article provides a thick description geertz 1973 of sustainability economics baumgartner and quaas 2010a b have proposed as an alternative to ecological economics the new field of sustainability economics which has triggered various replies the purpose here is to order and to review these contributions building upon a literature review of sustainability economics the paper argues that the concept currently has more of a fuzzy and declamatory character the rhetoric mccloskey 1998 of sustainability economics contains general issues of sustainability economics externalities and the capability approach the article argues that it is currently not clear how the solutions for science and policy proposed by sustainability economics differ from those of ecological economics efforts should be directed towards further development of the theory and the operationalization of sustainability principles the systemic view of co evolutionary development social learning and sustainability economics normative underpinning merits more consideration in the debate about sustainability economics

public policy towards r d in oligopolistic industries the importance of determining optimal policy towards r d cannot be exaggerated given the worldwide interest in fostering r d and given the significant differences between european and u s policies towards interfirm cooperation on r d moreover the problem is an inherently difficult one because of the complex nature of the r d process since r d is a component of fixed costs industries where it is important tend to be concentrated hence r d policy must go hand in hand with competition policy at the same time r d is like any form of investment in that it precedes the production stage hence issues of time consistency and strategic commitment inevitably arise in considering the choice of r d policy finally r d by one firm typically leads to spillovers wbich benefit other firms so that r d exhibits many of the character department of economics university college dublin belfield dublin 4 ireiatid for helpful discussions and comments we are grateful to two anonymous referees to pedro bartos steve martin massimo motta and damien neven and to participants at seminars in birmingham st andrew s and warwick at a cepr workshop on r d spillovers in lausanne at erwit 94 in caslel gandolfo eea 95 in prague the 1996 conference on industrial economics at universidad carlos iii de madrid and a meeting of the dublin economics workshop this paper was produced as part of the international economic performance programme of the centre for economic performance london school of economics supported by the u k esrc an earlier version was circulated as cepr discussion paper no 1243 see alexis jacquemin 1988 and stephen martin 1996 istics of a public good albeit one that is mostly privately produced tbe degree to which such spillovers occur and can be internalized is another crucial influence on the desirable pattem of intervention