The Market Process and The Firm Toward a Dynamic Property Rights Perspective

We discuss the relations between alternative conceptualizations of the market process - neoclassical, Austrian and radical subjectivist/evolutionary - and alternative approaches to economic organization, for example, nexus of contract theory, Williamsonian transaction cost economics and the dynamic transaction cost approach of Langlois and Robertson. We argue that there is a distinct need for more firmly grounding theories of economic organization in theories of the market process, and that key ideas of the more dynamic conceptualizations of the market are likely to substantially enrichen the theory of economic organization.The market process, the theory of the firm

Technological Interdependencies,Specialization and Coordination A Property Rights Perspective on The Nature of the Firm

This paper develops a property rights perspective on the nature of the firm. The basic idea is that learning by doing in production and coordination stem from experience in production and that user rights over productive assets are necessary in order to accumulate the experience needed to perform improvements in production. Accumulation of skills from learning by doing in production is accelerated by specialization in production. However, specialization introduces greater complexity and new kinds of tools and equipment and this creates uncertainty about the best way of coordinating specialized interdependent activities. The result may be bottlenecks in production and uneven development of components. Experimenting in coordination is necessary in order to eliminate these problems. It is argued that the Coasian notion of firms where coordination is provided by the direction of managers provides a cheap way of conducting the experiments needed to collect information on how best to coordinate interdependent activities.Property rights, specialization in production, firm, boundaries, learning

A heuristic-based approach to code-smell detection

Encapsulation and data hiding are central tenets of the object oriented paradigm. Deciding what data and behaviour to form into a class and where to draw the line between its public and private details can make the difference between a class that is an understandable, flexible and reusable abstraction and one which is not. This decision is a difficult one and may easily result in poor encapsulation which can then have serious implications for a number of system qualities. It is often hard to identify such encapsulation problems within large software systems until they cause a maintenance problem (which is usually too late) and attempting to perform such analysis manually can also be tedious and error prone. Two of the common encapsulation problems that can arise as a consequence of this decomposition process are data classes and god classes. Typically, these two problems occur together – data classes are lacking in functionality that has typically been sucked into an over-complicated and domineering god class. This paper describes the architecture of a tool which automatically detects data and god classes that has been developed as a plug-in for the Eclipse IDE. The technique has been evaluated in a controlled study on two large open source systems which compare the tool results to similar work by Marinescu, who employs a metrics-based approach to detecting such features. The study provides some valuable insights into the strengths and weaknesses of the two approache

Venture mania in Europe: Its causes and consequences

Over the course of the past twenty years, venture capital has fuelled an entrepreneurial revolution - first in the United States and now in Europe's common market -, which has opened new opportunities for technological innovation, capital investment and employment growth. Some of the most promising opportunities are in science-based industries, like software and biotechnology, which are often seen as driving the transformation to an increasingly knowledge- based economy. Indeed, this transformation would hardly be conceivable without the innovative contributions of business start-ups that rely on venture capital to finance their early stages of growth. So what, if anything, should governments do to support venture capital and help this transformation along? This paper will argue that governments must understand that venture capital is necessarily linked to specialization and therefore cannot be expected to play the same role in any two economies whose place, and contribution, within the international division of labour differ. --

GSO: Designing a Well-Founded Service Ontology to Support Dynamic Service Discovery and Composition

A pragmatic and straightforward approach to semantic service discovery is to match inputs and outputs of user requests with the input and output requirements of registered service descriptions. This approach can be extended by using pre-conditions, effects and semantic annotations (meta-data) in an attempt to increase discovery accuracy. While on one hand these additions help improve discovery accuracy, on the other hand complexity is added as service users need to add more information elements to their service requests. In this paper we present an approach that aims at facilitating the representation of service requests by service users, without loss of accuracy. We introduce a Goal-Based Service Framework (GSF) that uses the concept of goal as an abstraction to represent service requests. This paper presents the core concepts and relations of the Goal-Based Service Ontology (GSO), which is a fundamental component of the GSF, and discusses how the framework supports semantic service discovery and composition. GSO provides a set of primitives and relations between goals, tasks and services. These primitives allow a user to represent its goals, and a supporting platform to discover or compose services that fulfil them

Professional services and development : a study of Mozambique

Professional skills are scarce in Mozambique, even by the standards of low-income countries. The solution, however, is not necessarily to create more Mozambican training institutions but to address market-specific problems. Where skills are already the binding constraint (for example, in auditing and engineering), policy action is indeed needed to remedy supply-side problems: capital market imperfections that inhibit investment in training institutions by entrepreneurs and in education by individuals; weakness in upstream school education, which handicaps Mozambican students in their pursuit of higher education; inadequacies in professional education and training, including curricula not attuned to industry needs; and a fragmentation of the regional education market by regulatory and language differences that prevent the emergence of regional institutions that can exploit economies of scale.Where skills may be limited but are not yet the binding constraint, the priority is to stimulate demand for appropriate skills. In this respect, the emergence of professional guilds offers opportunities, but also creates risks. The guilds can design, with government support, a regulatory framework, for example, in accounting and basic engineering, which is more attuned to the needs of Mozambican firms. They can also help make firms more aware of the benefits of professional help, for example, in accounting and information technology. The risk is that guilds will create unnecessary regulatory barriers to entry, particularly for foreign or foreign-trained professionals. Greater coherence between policies affecting professional services and international migration policy can help deal with both supply-side and demand-side problems.Tertiary Education,,Access&Equity in Basic Education,Education For All,Teaching and Learning

Organizing Economic Experiments The Role of Firms

Many economists, including Austrian economists, have argued that the market process is essentially an experimental process. We briefly try to clarify this conceptualization, and then argue that we may understand the firm in much the same light. A basic view of the firm as an experimental entity is derived, drawing on property rights insights.The theory of the firm, Austrian economics, property rights

Indicators of university-industry knowledge transfer performance and their implications for universities: evidence from the UK’s HE-BCI survey

Focusing on the measurement of universities’ performance in knowledge transfer, we outline some critical issues connected with the choice of appropriate indicators: in particular, we argue that, in order to allow universities to correctly represent their knowledge transfer performance, indicators should include a variety of knowledge transfer activities, reflect a variety of impacts, allow comparability between institutions, and avoid the creation of perverse behavioural incentives. To illustrate these issues empirically, we discuss the case of the United Kingdom’s Higher Education –Business and Community Interaction (HE-BCI) survey. We show that the indicators used to measure and reward universities’ engagement in knowledge transfer are not fully comprehensive, they are better suited to capture the impact of certain types of activities than others and they are influenced by institutional strategies and characteristics rather than simply reflecting different performances. The conclusions explore some promising directions to address some of these problems

The offshoring of financial services : a reassessment

Operating in increasingly competitive market environment, financial services companies are engaged in international re-engineering of business processes mirroring developments in manufacturing over the past four decades. Drawing upon interviews conducted with senior managers and partners from two leading international banks, a multinational 'consumables' provider and a leading finance consultancy, as well as extensive published surveys, we examine the distinctive 'anatomy' of offshoring in financial services, and industry which also manifests a high degree of geographical concentration for 'higher order' functions. We conclude that the reality of process re-engineering in the sector has frequently failed to meet business objectives, and has run the risk of creating 'backlash' from employees in both home and host environments