Fifth Annual Conference

 

“Institutions and Governance”

 

 

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PROGRAM

 

Berkeley, CA

September 13-15, 2001

 

 

Keynote Lecture I

 

Welcoming Remarks:  Paul Gray (Executive Vice Chancellor and Provost, University of California at Berkeley)

 

Chair:                          Oliver Williamson (University of California at Berkeley), President of ISNIE    

 

Keynote speaker:        Vernon Smith (University of Arizona), Desiging Electricity Market Institutions: Issues and Experiments

 


 

Session I

 

Panel I-A:  REGULATORY ISSUES IN A WORLD OF INNOVATION

 

Independent Regulation and Telecommunications Performance in Developing Countries

Audrey Baudrier (University of Paris-Pantheon-Sorbonne)

 

Regulating the Internet: The Strategy and Political Economy of Internet Intellectual Property Protection

John M. de Figueiredo (Massachusetts Institute of Technology)

 

New Economy Litigation: Claims to Intellectual Property and Human Capital in a Global Institutional Environment Changing at the Speed of Thought

Kenneth D. Gartrell, Mark A. Sarro, and Jürgen R. Weiss (all of The Brattle Group)

 
The Transaction Cost Origins of Food and Drug Regulation
Marc T. Law (Washington University in St. Louis)

 

 

Panel I-B: CONTRACTUAL AGREEMENTS

 

The Option to Expand: The Use of Multi-unit Opportunities to Support Self-Enforcing Agreements in Franchise Relationships

Janet E.L. Bercovitz (Duke University)

 

Organic Products in Brazil: Institutional Environment and Competition Patterns

Elizabeth M.M.Q. Farina and Christiane Leles Rezende (both of University of Sao Paulo-Brazil)

 

Quality Assurance Mechanisms in the Agrifood Sector: The Meat Sector Case

Manuel González Díaz, Marta Fernández Barcala, (both of University of Oviedo-Spain) and Benito Arruńada (University of Pompeu-Fabra)

 

Contract Adaptation and the Quasi-Judicial Role of Large Retailers: Learning Process with Quality Uncertainty

Armelle Mazé (University of Paris-Pantheon-Sorbonne)


Panel I-C: COOPERATION AND TRUST

 

Trust and Political Economy: Institutions and the Sources of Inter-Firm Cooperation

Henry Farrell (Max-Planck Project Group on Common Goods-Germany)

 

Experiments on Trust and Bargaining in Bulgaria: The Effects of Institutions and Culture

Kenneth Koford (University of Delaware)

 

An Economic Model of Moral Motivation

Kjell Arne Brekke (University of Oslo), Snorre Kverndokk (Ragnar Frisch Center for Economic Research) and Karine Nyborg (Statistics Norway)

 

Rationality and Cooperation between Firms: Testing Habitual Behavior in Greek Industries

Michel S. Zouboulakis and John Kamarianos (both of University of Thessaly-Greece)

 

 

Panel I-D: EMPLOYMENT RELATIONSHIP

 

Hiring and Market Intermediaries: A Comparative Approach to IT Labor Markets in France and Great Britain

Christian Bessy (University of Paris) and Guillemette de Larquier (University of Paris-Nanterre)

 

Firms’ Motivation to Invest in Training: The Role of Dependency, Hostages, and Cooperation

Irmgard Nübler (Free University of Berlin)

 

Corporate Culture and Exploitation

Ekkehart Schlicht (University of Munich)

 

A Stakeholder Theory Approach to Predicting Counter-Productive Work Behavior

Brenda C. Sun (London School of Economics)

 

 


 

Session II

 

Panel II-A: ON REGULATION AND DEREGULATION

 

Chair: Paul Joskow (MIT; vice-president of ISNIE)

 

Session Coordinator: Mary M. Shirley (The World Bank)

 

Discussants: Guy Holburn (University of California at Berkeley) and Bernardo Mueller (University of Brazil)

 

Power Utility Restructuring in East European Transition Countries: An Institutional Interpretation

Christian von Hirschhausen and Petra Opitz (both of the German Institute for Economic Research)

 

Telecommunications in Africa: The Role of Competition in Weak Institutional Settings
Mary M. Shirley (The World Bank)

 

Telecommunications Privatization in Developing Countries: The Real effects of Exclusivity Period

Scott Wallsten (Stanford University)

 

Managing to Keep the Lights On (And the Profits Flowing): Political Risk Identification, Mitigation, and Analysis in Electricity Generation

Witold Jerzy Henisz (University of Pennsylvania) and Bennet A. Zelner (Georgetown University)

 

Panel II-B: TAXES AND TRANSACTION COSTS

 

Chair: Arthur Denzau (Claremont Graduate University)

 

Discussants: Carl Hampus Lyttkens (Lund University) and Dean Williamson (US Department of Justice)

 

The Enforcement of Property Rights: Comparative Analysis of Institutions Reducing Transactions Costs in Real Estate

Benito Arruńada (Pompeu Fabra University)

 

Tax Britannica: Nineteenth Century Tariffs and British National Income

Sami Dakhlia (University of Alabama) and John Nye (Washington University in St. Louis)

 

Banking On the King: The Evolution of Organizations Dedicated to Tax Collection in Old Regime France

Noel Johnson (Washington University in St. Louis)

 

Informal Institutional Arrangements and Tax Evasion in Russian Economy

Vadim Radaev (The State University Higher School of Economics)

 

 

Panel II-C: THE DYNAMICS OF SOCIAL RELATIONS

           

Chair: Jean Ensminger (California Institute of Technology)

 

Discussants: William Humphrey (Washington University in St. Louis) and Vai-Lam Mui (University of Notre Dame)

 

Fairness, Character, and Efficiency in Firms

Robert Cooter (University of California at Berkeley) and Melvin A. Eisenberg (University of California at Berkeley)

 

Contractual Relations: It Takes Both Trust and Lack of Mistrust

Siegwart Lindenberg  (University of Groningen)

 

New Economic Sociology and New Institutional Economics
Rudolf Richter (University of Saarland)

 

Social Cognitive Learning and Evolutionary Mechanisms in Institutions

Ulrich Witt (Max-Planck Institute for Research Into Economic Systems)

 

 

Panel II-D: INNOVATION AND ORGANIZATIONS

 

Chair: Jean-Michel Glachant (University of Paris - Sceaux)

 

Discussants: Nicolas Argyres (Boston University) and Charles Edquist (Linköping University)

 

Innovation-Led Growth Under Global Competition: A Theoretical Model and Evidence From Japan

Serguey Braguinsky, Atsushi Ohyama, (both of University of Chicago) and David C. Rose (University of Missouri)

 

The Vanishing Hand: The Modular Revolution in American Business

Richard N. Langlois (University of Connecticut)

 
Equity Joint Ventures and the Scope of Knowledge Transfer Between Diversified Firms: Evidence from U.S.-Japan Alliances
Tetsuo Wada (Gakushuin University)

 

Stability of Contracts in the Brazilian Wine Industry: Improving Quality Attributes Through Chain Coordination

Decio Zylbersztajn (University of Sao Paulo) and Marcelo Miele  (Secretary of Agriculture- State of Rio Grande do Sul)


Session III

 

Panel III-A: ECONOMIC SOCIOLOGY OF CAPITALIST INSTITUTIONS

 

Chair:  Siegwart Lindenberg (University of Groningen)

 

Session Organizer: Victor Nee (Cornell University)

           

Social Networks, Trust, Power, and Institutions in the Economy

Mark Granovetter (Stanford University)

 

Networks of Competition: Institutionalized Job-Matching in the Japanese Economy

Mary C. Brinton (Cornell University)

 

Organizational Dynamics of Institutional Change: Market Transition and Organizational Forms

Victor Nee (Cornell University)

Something More Is Needed Than Good Institutions For A Healthy Capitalism: On The Economic Sociology Of Weber And Schumpeter

Richard Swedberg (Center for the Advanced Study in the Behavioral Sciences

 

 

Panel III-B: INTER-FIRMS CONTRACTS

 

Chair and Session Coordinator: Stephane Saussier (University of Paris-Pantheon-Sorbonne)

 

Discussants: Josef Windsperger (University of Vienna) and Steve Tadelis (Stanford University)

 

 Contractual Mix Analysis in the Brazilian Franchising

Paulo Furquim Azevedo and Vivian Lara dos Santos Silva (both of Federal University of Săo Carlos-Brazil)

 

Contracting in the Absence of Specific Investments and Moral Hazard: Understanding the Structure of Owner-Operator Leases in Trucking

Francine Lafontaine and Scott E. Masten (both of University of Michigan)

 

Incomplete Contract Theory and Contracts Between Firms: A Preliminary Empirical Study

Bruce R. Lyons (University Of East Anglia)

 

What Complementarities Between the Structure of Franchise Contracts and Managerial Control? An Empirical Analysis Using French Data

Thierry Pénard (University de Rennes), Emmanuel Raynaud and Stéphane Saussier (both of University of Paris)

 

Panel III-C: GROWTH AND TRANSITION

 

Chair: Decio Zylbersztajn (University of Sao Paulo)

 

Discussants: Ning Wang (University of

Chicago) and Witold Henisz (University of Pennsylvania)

 

Transition: An Evolutionary-Institutional Perspective

Gérard Roland (University of California at Berkeley)

 

How Governance Affects the Quality of Policy Reform and Economic Performance: Evidence for Economies in Transition

Joachim Ahrens and Martin Meurers (both of University of Goettingen)

 

Institutional Reform in Transitions Economies: How Far Have They Come?

Beatrice Weder (University of Basle)

 

Boondoggles and Expropriation: When Are Property Rights Secure and Public Investment Growth-Promoting?

Philip Keefer and Stephen Knack (both of The World Bank)

 

 

Panel III-D: INSTITUTIONS AND POLICY DETERMINATION

 

Chair: Stephen C. Littlechild (Judge Institute of Management Studies)

 

Session Organizer: Pablo Spiller (University of California at Berkeley)

 

Discussants: Philip Keefer (The World Bank) and Itai Sened (Washington University in St. Louis)

           

Coalitional Stability and the Gains From Trade Between the Executive and the Legislature in Brazil

Lee J. Alston (University of Illinois at Urbana-Champaign) and Bernardo Mueller (University of Brazil)

 

Reconsidering Statutory Interpretation and the Appropriations Process

Mathew M. McCubbins (University of California at San Diego) and Daniel B. Rodriguez (University of San Diego)

 

Protecting the Weak: Why (and When) States Adopt Administrative Procedure Acts

Rui J.P. de Figueiredo Jr. (University of California at Berkeley) and Richard K. Vanden Bergh (University of Vermont)

 

Institutions, Intertemporal Political Agreements, and Public Policies

Pablo Spiller (University of California at Berkeley) and Mariano Tommasi (University of San Andrés)

 


Session IV

 

Panel IV-A: NEW INSTITUTIONAL APPROACH TO THE CLASSICAL WORLD

 

Chair and Session Organizer: Barry Weingast (Stanford University)

 

Discussants: Barry Weingast (Stanford University) and John Nye (Washington University in St. Louis)

 

 

The Nie And Ancient History: The Case Of Ptolemaic Egypt (332 BCE-30 BCE)

J.G. Manning (Stanford University)

 

The Ancient Greek Economic Miracle

Ian Morris (Stanford University)

 

Imaginary Invasions of Italy: Propaganda, Conscription, and Imperialism, 200-146 B.C.

James M. Quillin (University of Southern California)

 

 

 

Panel IV-B: ORGANIZATIONAL ARRANGEMENTS

 

Chair: Guy Pfefferman (International Finance Corporation)

 

Discussants: Stephane Saussier (University of Paris) and Travis Taylor (University of Richmond)

 

Governance Inseparability and the Evolution of the U.S. Biotechnology Industry

Nicholas Argyres (Boston University) and Julia Liebeskind (University of Southern California)

 

Decentralization and Cooperation: Organizational Form at General Motors, 1924-1958

Robert Freeland (Stanford University)

 

Are Internal Capital Markets Good for Innovation?

Peter G. Klein (University of Georgia)

 

Who’s Monitoring the Monitor? Do Outside Directors Protect Shareholders’ Interests?

Eric Helland (Claremont McKenna College) and Michael Sykuta (University of Missouri)

 

 

Panel IV-C: COMPETITION BETWEEN PUBLIC AND PRIVATE ORDER

 

Chair: John Drobak (School of Law, Washington University in St. Louis)

 

Discussants: Robert Cooter (University of California at Berkeley) and Gregory La Blanc (University of Virginia)

 

Internet Regulation: Does Self-Regulation Require an Institutional Framework?

Éric Brousseau (ATOM, University of Paris-Nanterre)

 

Public versus Private Provision of Corporate Charters
Gillian K. Hadfield (University of Toronto) and Eric Talley (University of Southern California)

 

Order with a Little Bit of Law: Complementarity versus Substitution of Formal and Informal Arrangements

Sergio G. Lazzarini, Gary J. Miller, and Todd R. Zenger (all of Washington University in St. Louis)

 

Judges and Institutional Change: An Empirical Case Study

Martin Schneider (Institute of Labor Law and Industrial Relations in the EC)

 

Panel IV-D: ISSUES IN MEASUREMENT OF TRANSACTION COSTS

 

Chair: Michel Ghertman (HEC, Paris)

 

Discussants: Lee Benham (Washington University in St. Louis) and Michael Rushton (University of Regina)

 

The Effects of Reputation: A Well-Functioning Market Under Quality Uncertainty

Ignace Adant (Free-Lance Researcher in Belgium) and Frederic Gaspart (Center of Research on Economy and Development)

 

A Theory of Organizations to supersede the Theory of the Firm

Yoram Barzel (University of Washington)

 

Towards the Development of an Indicator of Transaction Costs

Christian Eigen-Zucchi (George Mason University)

 

Long-term vs. Short-Term Subcontracting: A Transaction Cost Analysis

Susana López-Bayón and Manuel González Diaz (both of University of Oviedo-Spain)


Keynote Lecture I I

Friday, September 14

 

Chair:                             Claude Menard (University of Paris-Pantheon- Sorbonne,  President-Elect of ISNIE)

 

Keynote speaker:         Bengt Holmstrom (Massachusetts Institute of Technology), The Innovation Imperative and Firm Organization

 



Session V

 

Panel V-A: TRUST

 

Chair: John Nye (Washington University in St. Louis)

 

Session Organizer: Paul J. Zak (Claremont Graduate University)

 

Discussants: Serguey Braguinsky (The University of Chicago) and David Rose (University of Missouri)

 

Floating in Uncertainty: The Vanilla Trade After Liberalization

Margaret Brown (Washington University in St. Louis)

 

Trust: Experimental Results from East Africa

Jean Ensminger (California Institute of Technology)

 

Trust, Democracy, and Development

Margaret Levi (University of Washington)

 

Building Trust: Public Policy, Interpersonal Trust, and Economic Development

Stephen Knack (The World Bank) and Paul J. Zak (Claremont Graduate University)

 

 

Panel V-B: REFORM OF PUBLIC UTILITIES

 

Chair: David Teece (University of California at Berkeley)

 

Discussants: Bruce Lyons (University of East Anglia) and Mary Shirley (The World Bank)

 

Corporate Governance and Change in a Network Industry: Corporate Control and the 1987 Japanese Railway Reforms

James A. Doherty (Regulatory Policy Research Center-Oxford)

 

California’s Electricity Crisis

Paul L. Joskow (Massachusetts Institute of Technology)

 

Competitive Bidding for a Long-term Electricity Distribution Contract

Stephen C. Littlechild (Judge Institute of Management Studies)

 

Transactional Alignment and Governance Structures Performances: Application to the British Railway Industry

Anne Yvrande (University of Paris-Pantheon- Sorbonne)

 

 

Panel V-C: MICROECONOMICS OF TRANSITION

 

Chair: Andrei Shastitko (Bureau of Economic Analysis, Moscow)

 

Discussants: David O’Brien (University of Missouri) and Gérard Roland (University of California at Berkeley)

 

In Search of the Market: Lessons From Analyzing Agricultural Transition in Central and Eastern Europe

Markus Hanisch, Volker Beckmann, Silke Boger (all of Humboldt University of Berlin) and Markus Brem (KPMG-Japan)

 

Municipal Infrastructure Financing: The Case of Inverse BOT

Károly Jókay,  Judit Kálmán, and  Mihály Kopányi (all of The World Bank)

 

Competition Laws in a Different Context: Managing Vertical Restraints in China’s Transitional Economy

Chenglin Liu (Washington University in St. Louis)

 

Ownership Concentration and Firm Performance in Russia: The Case of Blue Chips of the Stock Market

Pavel Kuznetsov (Russian-European Center for Economic Policy-Moscow) and Alexander Muravyev (Saint-Petersburg State University and Russian-European Center for Economic Policy-Moscow)

 

 

Panel V-D:  REFORMING INSTITUTIONS: SOME CHALLENGES

 

Chair: Rudolf Richter (University of Saarland)

 

Discussants: Dino Falaschetti (University of California) and Charles Elworthy (Free University of Berlin)

     

Privatization and Performance: Do the Speed and Sequence of the Process Impact Performance of Former Monopolies?

Jean-Phillipe Bonardi (University of Western Ontario) and Bertrand V. Quelin (HEC Paris)

 

Brazilian Regulatory Agencies: Early Appraisal and Looming Challenges
Andrea Goldstein (OECD Development Centre-Paris) and José Claudio Linhares Pires (Brazilian National Bank)

 

Does Individual-Specific Uncertainty Lead to Resistance to Reform? Evidence from Laboratory Participation Games

Timothy N. Cason (Purdue University) and Vai-Lam Mui (University of Notre Dame)

 

Incentive versus Transaction Costs: A Theory of Procurement Contracts

Steven Tadelis and Patrick Bajardi (both of Stanford University)

 


Session VI

 

Panel VI-A: EXPERIMENTS IN THE STUDY OF INSTITUTIONS

 

Chair and Session Organizer: James Alt (Harvard University)

 

Discussants: Arthur Lupia (University of California, San Diego) and Jean Ensminger (California Institute of Technology)

 

Speculative Attacks and Financial Architecture: Experimental Analysis of Coordination Games with Public and Private Information

Frank Heinemann (Goethe University-Frankfurt), Rosemarie Nagel (University Pompeu Fabra-Barcelona) and Peter Ockenfels (Goethe University-Frankfurt)

 

Trust and Incentives in Principal-Agent Negotiations: The “Insurance/Incentive Trade-Off”

Gary Miller (Washington University in St. Louis) and Andrew Whitford (University of Kansas)

 

Do you want efficiency or incentive compatibility? An experimental comparison of collective choice procedures

Sean Gailmard (University of Chicago) and Thomas R. Palfrey (California Institute of Technology)

 

 

Panel VI-B: INSTITUTIONS AND LONG RUN DYNAMICS

 

Chair: Itai Sened (Washington University in St. Louis)

 

Discussants:  Richard Langlois (University of Connecticut) and Michel Ghertman (HEC, Paris)

 

How Do Self-enforcing Institutions Endogenously Change? Institutional Reinforcement and Quasi-Parameters

Avner Greif (Stanford University)

 

Innovation Versus Stagnation: Japanese and Chinese Silk Reeling Industries 1860-1937

Debin Ma  (University of Missouri – St. Louis)

 

Learning, Change, and Economic Performance

Chris Mantzavinos (Max Planck Project Group), Douglass C. North (Washington University in St. Louis) and Syed Shariq (Stanford University)

 

Transparency, Contract Selection and the Maritime Trade of Venetian Crete, 1303-1351

Dean V. Williamson (US Department of Justice)

 

 

Panel VI-C: POLITICAL RISKS AND CORRUPTION

 

Chair: Philip Keefer (The World Bank)

 

Discussants: Paul Zak (Claremont Graduate University) and Kazi Ali Toufique (Bangladesh Institute of Development Studies)

 

Political and Administrative Corruption: A Comparative View of Their Organization and Development

Jose Alberto Garibaldi (ITAM/SECODAM-Mexico)

 

Political Risk, Political Capabilities and International Investment Strategy: Evidence From the Power Generation Industry

Guy L.F. Holburn (University California at Berkeley)

 

Strategies for Surviving Politically: Different Political Career Choices in the Brazilian Chamber of Deputy

Carlos Pereira (University of Oxford), Eduardo Leoni (Michigan State University) and Lúcio Rennó (University of Pittsburgh

 

Do Formal Rules Help to Depoliticize State-Owned Enterprises in Transitional Economies? Empirical Evidence from Patterns of Political Interference under China’s Company Law

Sonja Opper (University of Tübingen) Man Lai Sonia Wong (University of Hong Kong) and Hu Ruyin (Shanghai Stock Exchange)

 

 

 

Panel VI-D, Roundtable: COMMENTARY ON ARMEN ALCHIAN’S CONTRIBUTION TO NIE

 

Chair and Session Organizer: Lee Benham (Washington University in St. Louis)

 

Lee Benham (Washington University in St. Louis)

 

Armen Alchian and Financial Economics    

Harold Mulherin (Claremont McKenna College)     

 

On Armen A. Alchian            

Rudolf Richter (University of Saarland)

 

Susan Woodward  (Sand Hill Econometrics)

 

Alchian Between the Lines

Earl Thompson (University of California at Los Angeles)                                          

 


Session VII-Special Session

 

Panel VII: A BERKELEY WINDUP        

 

Chair: Mary Shirley (The World Bank)

 

The Economics of Education: Some Lessons from Sociology

George A. Akerlof and Rachel E. Kranton (both of University of California at Berkeley)

 

Vertical Integration In Gasoline Supply: An Empirical Test Of Raising Rivals' Costs

Richard Gilbert and Justine Hastings (both of University of California at Berkeley)

 

The Science of Contract: Private Ordering

Oliver E. Williamson (University of California at Berkeley)

 


Special Contributions Session

 

Disintermediation in the Online Transactions: Why do Traditional Retailers Behave Differently When Adopting E-Commerce

Veneta Andonova

 

Credible Commitments And Investment: Does Checking the Ability or Incentive For Opportunism Matter?

Dino Falaschetti (University of California)

 

Participatory Democracy in Latin America: A Comparative Analysis

Clemente Forero-Pineda (Universidades de los Andes Y el Rosario)

 

Towards a General Theory of Contract Enforcement: Understanding the Linkages Between Alternative Enforcement Mechanisms

Hamish Gow and Johan F.M. Swinnen

 

Protecting Your Protection in a Violent World: The Interrelationship Between a State’s Organization of Violence and Its Constitutional Design

William Humphrey (Washington University in St. Louis)

 

Ethnic Conflicts, Human Capital and Migratory Patterns of Minorities

Eliakim Katz and Hillel Rapoport (Bar-Ilan University)

 

Coordination and Decommissioning: NFSNET and the Evolution of the Internet, 1985-95

Eiichiro Kazumori (Stanford University)

 

 

Barriers to Participation: The Informal Sector in Emerging Democracies

Catherine Kuchta-Helbling (The Center for International Private Enterprise)

 

Credit Contracts in Transition Countries: Contractual Problems and Different Solutions

Maria Lissowska (Warsaw School of Economics)

 

A Theoretical and Empirical Study of Institutions Inside School Organizations

R.W. McMeekin (Centro de Investigación e Desarrollo de la Educación)

 

Russia: Whether Deprivatization is Inevitable? Power-Property Phenomenon as a Path Dependency Problem

Rustem M. Nureev and Anton Runov (both of The State University Higher School of Economics, Moscow)

 

Paying the Piper, Calling the Tune: A Transaction Cost Analysis of the National Endowment for the Arts

Michael Rushton (University of Regina)

 

Soft Budget Constraints: Contract Approach

Andrei Shastitko and Vitali Tambovstev

 

An Empirical Evaluation of Offset Arrangements

Travis Taylor (University of Richmond)

 

Relationship Between Farm Size and Productivity in Bangladesh Agriculture: The Role of Transaction Costs In Rural Labour Markets

Kazi Toufique (Bangladesh Institute of Development Studies)

 

The Co-Evolution of Institutions, Organizations, and Ideology: The Longlake Experience of Property Rights Transformation

Ning Wang (University of Chicago)

 

Complementarities in Franchising Networks: A Property Right Approach

Josef Windsperger (University of Vienna)