where do markets come from production markets have two sides producers are a fully connected clique transacting with buyers as a separate but aggregated clique each producer is a distinctive firm with a distinctive product each side continually monitors reactions of the other through the medium of a joint social construction the schedule of terms of trade each producer is guided in choice of volume by the tangible outcomes of other producers not by speculation on hypothetical reactions of buyers to its actions each producer acts purely on self interest based on observed actions of all others summarized through a feedback process the summary is the terms of trade schedule which reduces to constant price only in limiting cases the market emerges as a structure of roles with a differentiated niche for each firm explicit formulae both for firms and for market aggregates are obtained by comparative statics methods for one family of assumptions about cost structures and about buyers evaluations of differentiated products not just any set of firms can sustain terms of trade with any set of buyers there prove to be three main kinds of markets and three sorts of market failure within a parameter space that is specified in detail one sort of market paradox has a madison avenue flavor another is more conventional grind and a third crowded is a new form not included in any existing theory of markets current american industrial markets are drawn on for 20 illustrations of which three are presented in some detail inequality in firms market shares measured by gini coefficients is discussed

kinship in the shadow of the corporation the interbuilder network in clyde river shipbuilding 1711 1990 the authors identify a system of intercompetitor affiliation that helped clyde river shipbuilding companies to thrive but was ultimately undermined by the rise of corporate capitalism they find that connections between companies through their leaders family ties or friendships were common and beneficial as every such tie maintained by a company reduced its annual risk of failure by 10 percent this average effect however masks an important contingency the direct benefits of interbuilder ties accrued only to family firms which enjoyed a reduced risk of failure of 34 percent with each tie and not at all to corporations the authors maintain that the shift to the corporate form inhibited the operation of the interbuilder network by reducing the autonomy of leaders to work through personal relations with their competitors the results encourage heightened attention both to the idea that horizontal ties within an industry may be a key determinant of organizational success and to the idea that some m

competitive tension the awareness motivation capability perspective this paper investigates competitive tension or the strain between a focal firm and a given rival that is likely to result in the firm taking action against the rival drawing on the awareness motivation capability perspective we show how perceived competitive tension as constructed from managers and industry stakeholders competitor assessments is influenced by the independent and interactive effects of three factors relative scale rival s attack volume and rival s capability to contest our results provide a new avenue for studying competitors and the relationship between competitor analysis and interfirm rivalry in science there is a steady state in which opposing forces hold each other in check until the build up of tension turns the static relationship into dynamic interplay the point when the steel cable snaps the steam chamber s pressure valve opens or one psychological force overwhelms the other in business practice a similar phenomenon exists when tension that one opponent imposes on another triggers rivalrous actions competitor analysis is central to strategy and organization research hitt ireland hoskisson 2005 porter 1980 previous research has explored a number of important issues including conjecture variation amit domowitz fershtman 1988 competitor identification porac thomas 1990 and blind spots zajac bazerman 1991 and has made advances in such areas as theoretical integration of competitor analysis and interfirm rivalry chen 1996 fundamental questions such as who a focal firm s competitors are and how much competition the firm faces from each rival have been implicitly or explicitly addressed by a variety

comparing systems approaches to innovation and technological change for sustainable and competitive economies an explorative study into conceptual commonalities differences and complementarities this paper makes a distinction between three theoretical frameworks that have been highly influential in the discourse on innovation competitiveness and sustainability sectoral systems of innovation ssi technological innovation systems tis and socio technical systems st systems these frameworks share a common systems approach to innovation but are often positioned as different bodies of literature that correspond to different epistemic communities this paper is explorative and conceptual in nature it presents a systematic comparative review of ssi tis and st systems based on the following analytical dimensions 1 system boundaries 2 actors and networks 3 institutions 4 knowledge 5 dynamics and 6 policy approach in the concluding section commonalities and differences of the three approaches are presented and suggestions for complimentarily are made c 2010 elsevier ltd all rights reserved

tools of the trade the socio technology of arbitrage in a wall street trading room to analyze the organization of trading in the era of quantitative finance we conduct an ethnography of arbitrage the trading strategy that best exemplifies finance in the wake of the quantitative revolution in contrast to value and momentum investing we argue arbitrage involves an art of association the construction of comparability across different assets in place of essential or relational characteristics the peculiar valuation that takes place in arbitrage is based on an operation that makes something the measure of something else associating securities to each other the process of recognizing opportunities and the practices of making novel associations are shaped by the specific socio spatial and socio technical configurations of the trading room calculation is distributed across persons and instruments as the trading room organizes interaction among diverse principles of valuation

close but no cigar the bimodal rewards to prize seeking this article examines the economic effects of prizes with implications for the diversity of market positions especially in cultural fields many prizes have three notable features that together yield an emergent reward structure 1 consumers treat prizes as judgment devices when making purchase decisions 2 prizes introduce sharp discontinuities between winners and also rans and 3 appealing to prize juries requires costly sacrifices of mass audience appeal when all three conditions obtain winning a prize is valuable but seeking it is costly so trying and failing yields the worst outcome a logic we characterize as a tullock lottery we test the model with analyses of oscar nominations and hollywood films from 1985 through 2009 we create an innovative measure of prize seeking or oscar appeal on the basis of similarity to recent nominees in terms of such things as genre plot keywords and release date we then show that oscar appeal has no effect on profitability however this zero order relationship conceals that returns to strong oscar appeals are bimodal with super normal returns for nominees and large losses for snubs we then argue that the effect of judgment devices on fields depends on how they structure and refract information

getting off to a good start the effects of upper echelon affiliations on underwriter prestige the initial public offering ipo is one of the most critical events in the lifetime of a young firm prior research has shown that firms tend to have successful ipos if they go public with the endorsement of a prestigious lead underwriter this paper examines the antecedents to receiving endorsement by a prestigious underwriter and links this to the experience base of a firm s upper echelon we theorize that the amount and type of upper echelon experience serve as important symbols of a young firm s legitimacy to critical outsiders we introduce a typology of upper echelon experience that distinguishes between upper echelon upstream horizontal and downstream employment based affiliations and suggest that these different types of upper echelon affiliations allay different types of endorser concerns regarding firm legitimacy affecting the endorsement process further we theorize that the relationships between upper echelon experience and investment bank prestige will be moderated by technological uncertainty we test our assertions on a comprehensive sample of public and private biotechnology firms that were founded between 1961 and 1994 and that went public between 1979 and 1996 analyses of the five year career histories of the over 3 200 executives and directors that make up the upper echelons of these firms show that firms with upper echelons with affiliations with prominent downstream organizations i e pharmaceutical and or healthcare companies and with prominent horizontal organizations i e biotechnology companies are more likely to attract the endorsement of a prestigious investment bank we also find that the greater the range of upper echelon affiliations across the categories of upstream horizontal and downstream affiliations the more prestigious the firm s lead underwriter we also find that these latter results are moderated by technological uncertainty the present research has implications for the study of organizational legitimacy interorganizational endorsements and entrepreneurship

cultural industries in international business research progress and prospect cultural industries systems of organizations that produce and distribute cultural goods with substantive symbolic aesthetic or artistic value represent an important exciting and complex context that receives growing scholarly attention as the first review of management research on cultural industries this paper aims to provide a systematic synthesis of current research summarizing distinctive characteristics of cultural industries and highlighting research gaps we also illustrate how the unique nature dynamics and evolution of cultural industries provide opportunities to broaden international business theories in four research themes i e internationalization strategy cross border innovation social inclusion in the global economy and emerging market research

optimal generation mix with short term demand response and wind penetration demand response defined as the ability of load to respond to short term variations in electricity prices plays an increasingly important role in balancing short term supply and demand especially during peak periods and in dealing with fluctuations in renewable energy supplies however demand response has not been included in standard models for defining the optimal generation technology mix three different methodologies are proposed to integrate short term responsiveness into a generation technology mix optimization model considering operational constraints elasticities are included to adjust the demand profile in response to price changes including cross price elasticities that account for load shifts among hours as energy efficiency programs also influence the load profile interactions of efficiency investments and demand response are also modeled comparison of model results for a single year optimization with and without demand response shows peak reduction and valley filling effects impacting the optimal amounts and mix of generation capacity increasing demand elasticity also increases the installed amount of wind capacity suggesting that demand response yields environmental benefits by facilitating integration of renewable energy

on the social structure of markets economic theorists have seldom discussed the social structures behind markets even though market trading relies heavily on seller buyer roles and personal relations among traders this paper considers the structural basis of markets and proposes a layered approach which accommodates a wide range of competitive and relational trade within a definition of markets that distinguishes them from non market exchange giving due regard to social structures lays bare the institutional character of markets and provides a rationale for case studies of how particular markets function

the stability of american markets much of the evidence of coordination between corporations and their markets comes from cross sectional conducted within portions of the american economy during the past two decades we know especially for manufacturing during the late 1960s that certain structural qualities of markets predict profits and the organization of large firms but this evidence is open to an uncomfortable empirical question to what extent did the social structural qualities determining resource dependence in american markets change during the 1960s and 1970s so as to limit the generalizability of cross sectional evidence the analysis here shows that markets were dramatically stable in he social structure of production relations known to predict the structure of large firms relying principally on department of commerce data the article traces the american economy through the 1960s and 1970s in terms of 77 broadly defined markets describing the stability of market boundaries and patterns of transactions with suppliers and c

refraining from imitation professional resistance and limited diffusion in a financial market why do some practices not spread although this is an important question for both diffusion theorists and those interested in institutional change we know surprisingly little about the limitations on diffusion because most diffusion studies sample on successful diffusion i address the question of why some practices fail to spread by introducing the concept of a deviance discount a deviance discount is a systematic downgrading of the observed adoption performance of controversial practices which limits the contagion of such practices i test and find qualitative and quantitative support for my thesis in the product introduction behavior of swedish mutual fund firms my findings hold implications for diffusion theory and theories of endogenous institutional change

when market information constitutes fields sensemaking of markets in the commercial music industry in this paper we outline a key mechanism through which organizational fields are constituted we suggest that in competitive fields the market serves as a magnet around which groups of actors consolidate and that cognition of markets occurs through the creation distribution and interpretation of a web of information about the market to illustrate our theory we present a case study of thebillboard music chart from the commercial music industry to show that changes in either scope methodology or political tone with which market information is presented can provide a major jolt to the participants understanding of their field

an asian route to capitalism religious economy and the origins of self transforming growth in japan modern capitalism is a self transforming dynamic that proliferates market niches new products and techniques the industrial revolution could take place only in the context of preexisting agricultural capitalism that in turn required a breakout from the obstacles constituted by agrarian coercive societies organizational conditions necessary for self sustaining capitalist growth included markets not only for commodities but for all factors of production land labor and capital combined under control of entrepreneurs motivated by an economic ethic of future oriented calculation and investment weber was mistaken in holding that the capitalist breakthrough occurred only in christian europe the author proposes a neo weberian model in which the initial breakout from agrarian coercive obstacles took place within the enclave of religious organizations with monasteries acting as the first entrepreneurs the model is illustrated by the case of buddhism in late medieval japan the leading sector of monastic capitalism spread into the surrounding economy through religious movements of mass proselytization which narrowed the gap between clergy and laity confiscation of buddhist property at the transition to the tokugawa period transferred the capitalist dynamic to the secular economy of an agricultural mass market opening the way for a distinctive japanese path through the industrial revolution

modeling of industrial energy consumption an introduction and context industrial energy accounts for roughly one third of total global energy consumption and is expected to continue to use a similar share in the foreseeable future however this is one of the hardest end uses to analyze model and forecast the reasons for modeling industrial energy consumption are as varied as the ways in which energy is used in production processes this has led to the application of a broad set of emperical tools from several different disciplines in this article we provide an introduction and context for a compendium or survey of the methods used in this area this special issue of energy economics is designed to provide both newcomers and accomplished researchers with an overview of the current state of development in the are of industrial energy modeling

the real time price elasticity of electricity the real time price elasticity of electricity contains important information on the demand response of consumers to the volatility of peak prices despite the importance empirical estimates of the real time elasticity are hardly available this paper provides a quantification of the real time relationship between total peak demand and spot market prices we find a low value for the real time price elasticity which may partly be explained from the fact that not all users observe the spot market price if we correct for this phenomenon we find the elasticity to be fairly low for consumers currently active in the spot market if this conclusion applies to all users this would imply a limited scope for government intervention in supply security issues

inequality among equals embedding market and authority in league sports in league sports the regulatory authority of leagues is thought to counter market pressures that would otherwise concentrate player talent in smsas with the largest market potential the presumed opposition between authority and markets is not supported by league histories in the four major team sports these histories show that contrary to expectations market potential has the greatest influence on winning when league authority is formally strongest market potential has no influence on performance when league authority is opposed by antitrust law player unions rival leagues or league members to explain this anomaly authority and market relations must both be seen as embedded within the multiplex relations among team owners these relations changed dramatically with the rise of national audiences in the past three decades inequality among equals replaced inequality among unequals as the support of a rootless national audience replaced rooted and unequal local audiences altering the opportunity

economic analysis of transmission expansion planning with price responsive demand and quadratic losses by successive lp the growth of demand response programs and renewable generation is changing the economics of transmission planners and regulators require tools to address the implications of possible technology policy and economic developments for the optimal configuration of transmission grids we propose a model for economic evaluation and optimization of inter regional transmission expansion as well as the optimal response of generators investments to locational incentives that accounts for kirchhoff s laws and three important nonlinearities the first is consumer response to energy prices modeled using elastic demand functions the second is resistance losses the third is the product of line susceptance and flows in the linearized dc load flow model we develop a practical method combining successive linear programming with gauss seidel iteration to co optimize ac and dc transmission and generation capacities in a linearized dc network while considering hundreds of hourly realizations of renewable supply and load we test our approach for a european electricity market model including 33 countries the examples indicate that demand response can be a valuable resource that can significantly affect the economics location and amounts of transmission and generation investments further representing losses and kirchhoff s laws is also important in transmission policy analyses

review on integrated strategies for energy policy planning and evaluation of ghg mitigation alternatives abstract this review paper is devoted to elaborating the status of different energy policy planning studies and the evaluation of various ghg mitigation studies it includes some of the major developments in global energy scenario status of green house gas ghg emissions issues in the implementation of kyoto protocol and ghg mitigation clean development mechanism cdm and energy scenario especially pertaining to the residential industrial and commercial energy sector in the initial sections the later part of this paper highlights the salient contributions in various literatures pertaining to energy demand forecasting in residential commercial and industrial sector ghg estimation methodologies and ghg mitigation studies in various sectors the success and difficulties in implementing various policy planning practices were also discussed in the paper most of the prominent literature in the area of energy demand and consumption analysis towards effective implementation of ghg mitigation is described in the end a comprehensive comments and recommendations based on the study were furnished

bi level approach to distribution network and renewable energy expansion planning considering demand response this paper presents a bi level model for distribution network and renewable energy expansion planning under a demand response dr framework the role of dr has recently attracted an increasing interest in power systems however previous models have not been completely adapted in order to treat dr on an equal footing the target of the distribution network and generation planner modeled through the upper level problem is to minimize generation and network investment cost while meeting the demand this upper level problem is constrained by the lower level problem stressing the importance of integrating dr to time varying prices into those investment models the objective function considered for the lower level is the minimization of overall payment faced by the consumers using the karush kuhn tucker complementarity constraints the proposed bi level model is recast as a mixed integer linear programming problem which is solvable using efficient off the shelf branch and cut solvers detailed results from an insular case study la graciosa canary islands spain are presented

optimal contract pricing of distributed generation in distribution networks this paper proposes a bilevel programming approach to determine the optimal contract price of dispatchable distributed generation dg units in distribution systems two different agents are considered in the model namely the distribution company disco and the owner of the dg the former seeks the minimization of the payments incurred in attending the forecasted demand while the latter seeks the maximization of his profit to meet the expected demand the disco has the option to purchase energy from any dg unit within its network and directly from the wholesale electricity market a traditional distribution utility model with no competition among dg units is considered the proposed model positions the dg owner in the outer optimization level and the disco in the inner one this last optimization problem is substituted by its karush kuhn tucker optimality conditions turning the bilevel programming problem into an equivalent single level nonlinear programming problem which is solved using commercially available software tests are performed in a modified ieee 34 bus distribution network

the energy demand in the british and german industrial sectors heterogeneity and common factors abstract this paper estimates energy demands for the german and british industrial sectors over the 1978 2004 and the 1991 2004 samples from time series models we can conclude that there is a considerable variation in the value of the coefficients across sectors even though energy demands with sensible parameters can rarely be estimated when using a panel approach the ability of some estimators to allow for diversity across subsectors was an important factor in explaining the estimates for price elasticity on the other hand correlation across panel members or common factors did not markedly influence our results with regard to the estimated parameters our preferred choice for elasticity of economic activity and price in the longer sample is 0 52 and 0 64 similar values are found in the case of the shorter samples bearing in mind the high price elasticity energy taxes can be considered an effective strategy for reducing energy consumption

save production a bottom up energy model for dutch industry and agriculture a new version of the model save production simulates the development of energy use in the dutch industry and agriculture including combined heat and power generation the model disaggregates national energy consumption into fuel types industrial sectors energy functions and energy technologies simulation is based on microeconomic investment behavior examples of model application show results on the penetration of combined heat and power in relation to policy instruments such as co2 prices electricity price support and investment subsidies policies that discriminate on co2 emissions result in a slightly more efficient heat and power generation tailored to the dutch situation save production is well equipped to generate outlooks for the dutch industrial and agricultural energy use and for analyzing the role of policies in detail its main strength lies in the middle term simulation of decision making on energy saving technologies and analysis of policy effects specific precautions are required when the model is used for analysis on the longer term for simulating extreme policies or for the analysis of extremely fluctuating energy prices

barriers to energy efficiency in industrial bottom up energy demand models a review the goal of this paper is to review bottom up models for industrial energy demand with a particular focus on their capability to model barriers to the adoption of energy efficient technologies the integration of barriers into the models is an important prerequisite for a more detailed and realistic modeling of policies for energy efficiency particularly with the emergence of more and more varying policy instruments it also becomes crucial for the models to take account of these policies as well as the barriers they address in a more realistic way our review revealed that despite the broadly evident existence of market failures and barriers for energy efficient technologies they are only partly and in a rather aggregated form considered in today s bottom up models the state of the art bottom up model is based on an explicit representation of the technology stock and considers the costs of energy efficiency options in detail but with regard to barriers most models only make use of an aggregated approach like an adjusted discount rate while some models do not even consider technology costs and energy prices but instead use exogenous technology diffusion rates other more advanced models took first steps towards considering barriers in more detail the latter allows differentiation between multiple parameters that influence technology adoption still even in the most advanced models only a few of the observed barriers are explicitly considered at the same time new approaches to considering barriers like uncertainty or the slow spread of information are being developed in other disciplines we conclude the paper by summarizing promising ways to improve representation of barriers in bottom up models

market culture and authority a comparative analysis of management and organization in the far east three frameworks purport to explain industrial arrangements and practices a market approach that emphasizes economic characteristics a cultural approach that sees organization as the expression of patterned values and an authority approach that explains organization as a historically developed structure of domination the efficacy of each approach is tested in explaining the organizational structures of three rapidly growing east asian economies japan south korea and taiwan the paper argues through comparative analysis that organizational growth is best explained by market and cultural factors but that authority patterns and legitimation strategies best explain organizational structure