When the term rational' is used in formal economic theory, a strict definition is implicit. This strict definition cannot accommodate the complexities of our everyday ideas of what is rational. The concept of rationality that is embedded in our language is not a morally neutral one. It has always been believed possible to argue rationally about the worthiness of goals, the legitimacy of claim to rights, the existence of obligations or duties. Outside the discussions of the social sciences, argument concerning the rationality of a choice or action is never a purely technical, value-free discourse.
This book is devoted to an examination of the limitations of the various formulations and interpretations of the concept of rationality which has been developed by economic theorists. It presents a series of challenges to the formal (axiomatic) concept of rationality. This concept has spread from economics and decision theory through the social sciences and policy studies. It forms the implicit foundation for the pronouncement of policy-makers, whose recommendations can seriously affect the society and environment in which we live.
The book begins with the claim of neoclassical economics that a rational agent maximizes utility. Next it considers the later, more austere construction of rationality where a rational agent was simply one whose choices or actions were consistent. The discussion then turns to who, dissatisfied with this bare notion of consistency, claimed that a rational agent was one whose choices or actions were directed towards maximization of the agent's self-interested aims - a view they attributed (misleadingly?) to Adam Smith. Once the character of the individual agent has been established, neoclassical theory has always regarded the analysis of allocation among these agents as its supreme task. This is the subject of chapters 6 and 7.
Vivian Walsh examines the philosophical implications of the replacement of the ordinary concept of rationality by the formal concepts constructed to fit the requirements of general equilibrium theory, decision theory, and game theory. He argues that the current intellectual climate, which has moved away from formalism, necessitates the reexamination of the concepts of rationality which scholars and policy-makers, many of whom were not economists, were ready to adopt directly or indirectly from economic theory in the recent past.
The final two chapters are intended to contrast sharply with the rest of the book. They offer a readable and minimally technical account of the much smaller role played by the concept of rational choice in the work of a present-day school which derives from the eighteenth- and nineteenth-century classical economists.

Dr. Hines draws on her own extensive worldwide research and her consultations with major multinational corporations to provide a comprehensive, detailed study of the rationale underlying the emergence of global private power, ways to find opportunities for further development within the global private power business, and alternative methods and techniques for its development and finance. Her book shows that, with assistance from bilateral and multilateral government agencies such as the International Finance Corporation and the various national export-import banks, project debt ratios resonably low. Equity is usually contributed to the project by all the major participants. Global competition for viable power projects is tending to reduce costs and increase plant efficiencies. This work is a major contribution to our understanding of what global power privatization is, where it is being implemented and how it is done, and the various considerations that energy executives and public policymakers worldwide should keep in mind when they seek financing for their private power projects.

Global power plant development commonly starts with regional and country risk analysis as the developer views alternative opportunities and compiles a prospectus for potential investors. As the developer analyzes the financial, market, operating, resource, political, and other risks, he or she usually considers possible methods of risk mitigation. With the participation of key host and home country and foreign partners, the developer selects the new location, the type of power plant and necessary equipment for the desired output, the fuel types and sources, the potential customers, the private financing methods, and the possibility of financial guarantees from the host government and bilateral and multilateral organizations. The markets of Asia, Latin America, and Europe present unusually good opportunities at the turn of the new century.

Transfer pricing is a dynamic and multidimensional topic that has captured the attention of academicians, corporate executives, and tax authorities for many decades. The issues of transfer pricing are very complex and the stakes are extremely high because more than 40 percent of international trade is trade between related entities. This book examines many important tax and management issues related to transfer pricing. These issues include new transfer pricing regulations and their implications, the selection of proper transfer pricing methods, major environmental variables, and issues concerning the administration of a transfer pricing system. The author also presents many interesting findings from a recent study on U.S. transfer pricing practices.

The author begins by describing the nature of intrafirm transactions in a corporate environment and the significance of intrafirm transactions in international trade. Recent changes and major transfer pricing legislation and regulations in the United States are explained. New transfer pricing regulations in Canada, Japan, South Korea, and the European Community and their implications are also discussed. These are followed by a presentation on research methodology and profile of 143 respondent firms. The author then explains the findings on transfer pricing methods and environmental variables of international transfer pricing. Current transfer pricing practices are compared with those of an earlier study done in 1977. Other issues such as system objectives, resolution of policy conflicts, and policies on outside purchases are covered by this monograph. General conclusions from this research and suggestions for further research are also provided.

With contributions from international scholars, this second volume by Joseph Stiglitz and Martin Guzman comprises of theoretical, empirical, and policy-based chapters which carefully utilize theory and data analysis. Part I focuses on the issues of global inequality, poverty measurement and security. Part II turns to the issue of income contingent loans (ICL), where the repayment in any year depends on the annual income of the individual. These loans have proven to be an especially effective way of financing higher education, but there has been experimentation of the use of these loans in several other areas.

Are state and local economic incentives to attract new firms worthwhile? Mitsubishi Motors in Illinois provides in-depth analysis of the incentives offered to land Diamond-Star Motors, the plant's labor force, supplier organization, and its community impact to answer this question. The authors conclude with a benefit-cost analysis of the incentive package at the community and at the state level. Written in nontechnical language, the book is intended for planners and administrators in state and local government, economic and business development officers, and international corporate management, as well as economists and public policy analysts.

Although much research has been compiled separately on the various issues surrounding the establishment of Japanese auto manufacturing plants in the United States, this work is unique for its direct surveys of workers, suppliers, members of the community, and city and state leaders involved in the negotiations. Data on the local housing impact are drawn from detailed examination of loan applications in the community during the major hiring period at the plant. While some results confirm previous work, the authors find many differences, particularly in the composition of the labor force and the effect of just-in-time production methods on supplier location. The book provides a comprehensive view of the community and regional impact of a Japanese auto manufacturing plant which can be used as a model for planning economic development strategies to attract new firms to states and communities. Written in nontechnical language, the book is intended for planners and administrators in state and local government, economic and business development officers, and international corporate management, as well as economists and public policy analysts.

M-commerce (mobile-commerce) refers to e-commerce activities carried out via a mobile terminal such as a phone or PDA. M-commerce applications for both individuals and organizations are expected to grow considerably over the next few years. Mobile Commerce: Technology, Theory and Applications addresses issues pertaining to the development, deployment, and use of these applications. The objective of this book is to provide a single source of up-to-date information about mobile commerce including the technology (hardware and software) involved, research on the expected impact of this technology on businesses and consumers, and case studies describing state-of-the-art m-commerce applications and lessons learned.

This study brings an original slant to the complex and much-debated question of the proper role of government in the economic sphere. Representing a broad range of disciplinary and ideological approaches, the authors identify and explore the most fundamental propositions concerning the economic role of government, as well as the generalizations, major themes, and conclusions that can be drawn from them. The essays focus on the deep levels of political and economic organization and on the values and underlying assumptions that are the bases of the institution of government. Written by a distinguished group of specialists, the work approaches the issue multidimensionally--from the standpoint of social science, history, law, and philosophy. Not mere ideological exercises, the essays focus on the deep levels of political and economic organization and on the values and underlying assumptions that are the bases of the institution of government. Connections between the government's economic role and ideology, free enterprise, power politics, and group interests are considered together with the constitutional implications of governmental economic powers. Other issues addressed include the changing economic role of government, contradictions and ambiguities in the government's economic functions, rules governing economic activity, and the role of economists in government. Providing a diversity of viewpoints and a wealth of fresh insights, this book can be used in graduate and undergraduate courses in economics, political science, philosophy, and law, and will appeal to the informed general worker.

With the current global crisis, high levels of volatility in trade, capital flows, commodity prices, aid, and the looming threat of climate change, this book brings together high-quality research and presents conceptual issues and empirical results to analyze the determinants of the vulnerability to poverty in developing countries.

""Economics and social conflict"" eventually brings to life the classic thought experiment of a natural state. Examining the behavior of almost 400.000 people living in the virtual anarchy of the online computer game "EVE Online," it highlights the economic aspects of these people's 'evil" behavior. The social conflict the players are engaging in is characterized by non-instrumental violence, a phenomenon that has not been in the focus of economic research yet.
The book shows that evil actions seemingly motivated by a "taste for harming" are of high relevance for the performance of the online economy and that the commonly held belief that social rules that foster conflict will be overcome eventually might be too optimistic.
By drawing on the server data, the book conducts highly controllable field work. In an environment that feels natural for the players, one can directly observe all of their actions and does not have to rely on the biased stories perpetrators and victims tell.

This study compares household energy use, environmental awareness, and consumerism among residents of small towns in Sweden and America. The author, a cultural anthropologist, uses quantitative and qualitative data from fieldwork to formulate a holistic analysis. The study considers broader questions about the uses of energy, consumer goods, quality of life, and the environment. The industrial worldview is critiqued at both individual and institutional levels. It concludes with a call for a more spiritual approach to environmentalism and social issues.

American agricultural production is destined to end, argues Steven Blank, but this should be no cause for alarm. In this work, he shows that the changes leading to the end of American agricultural production are part of a natural process that is making us all better off. Beginning with broad observations from history and the current status of agriculture around the world, Blank explores how the decisions of individuals combine to make the end of American agricultural production predictable and rational. The inevitable creeping of international economic development is shown to be the sum of individual struggles facing producers across America and around the world. Also, decisions regarding operating an agricultural business derive from many interrelated peculiarities of the industry, both in America and elsewhere. The story is fascinating in its global scope and is relevant to everyone because the simple economic decision-making processes involved will be repeated in the story of other industries.

In this book, economics meets sociology in order to investigate one of the central social changes in history: the decline of fertility. The book demonstrates how social interactions can be used to extend the rational and individual-centered approach of economists to include social norms, bounded rationality, social learning, and changing values and attitudes. The combination of these elements yields new insights into the dynamics and determinants of fertility change.

The proliferation of the internet has often been referred to as the fourth technological revolution. This book explores the diffusion of radical new communication technologies, and the subsequent transformation not only of products, but also of the organisation of production and business methods.

The first book of its kind, this is a collection of essays on the financing of transportation in non-metropolitan areas in the United States. It reviews basic demographic trends and conditions of infrastructures at the present time while exploring a wide range of alternatives for improving them. Including contributions from local finance personnel, engineers and other government officials, Financing Local Infrastructure in Nonmetropolitan Areas is an exhaustive study of the problems facing local infrastructure, providing an invaluable resource for scholars, administrators, and laypersons whose jobs are affected by infrastructure issues, such as agricultural and business personnel.

This book attempts to provide an effective strategy for industrial development based on the KAIZEN management training experiments conducted in Ghana, Kenya, Ethiopia, Vietnam, and Tanzania. We focus on micro and small enterprises (MSEs) in industrial clusters, because clusters consisting of MSEs are ubiquitous and have high potential to grow.

"A cut above most workplace histories. Looking at the separate but sometimes overlapping development of European and African-American hairdressing from the early twentieth century to the present, Willett shows how race shaped different trajectories for black and white salons."
--"Lingua Franca"

"Offers an unusually comprehensive look at a significant twentieth-century industry and female preoccupation"
--"American Historical Review"

"Refreshing to read a history so firmly historicized and grounded in working-class and Afro-American history"
-- "Journal of Social History"

"Carefully nuanced and [a] compelling history."
-- Nan Enstad, "The Journal of American History"

Throughout the twentieth century, beauty shops have been places where women could enjoy the company of other women, exchange information, and share secrets. The female equivalent of barbershops, they have been institutions vital to community formation and social change.

But while the beauty shop created community, it also reflected the racial segregation that has so profoundly shaped American society. Links between style, race, and identity were so intertwined that for much of the beauty shop's history, black and white hairdressing industries were largely separate entities with separate concerns. While African American hair-care workers embraced the chance to be independent from white control, negotiated the meanings of hair straightening, and joined in larger political struggles that challenged Jim Crow, white female hairdressers were embroiled in struggles over self-definition and opposition to their industry's emphasis on male achievement. Yet despite their differences, black and whitehairdressers shared common stakes as battles were waged over issues of work, skill, and professionalism unique to women's service work.

Permanent Waves traces the development of the American beauty shop, from its largely separate racial origins, through white recognition of the "ethnic market," to the present day.

Changing preferencesis a phenomenonoften invoked but rarely properlyaccounted for. Throughout the history of the social sciences, researchers have come against the possibility that their subjects' preferenceswere affected by the phenomenato be explainedor by otherfactorsnot taken into accountin the explanation.Sporadically, attempts have been made to systematically investigate these in uences, but none of these seems to have had a lasting impact. Today we are still not much further with respect to preference change than we were at the middle of the last century. This anthology hopes to provide a new impulse for research into this important subject. In particular, we have chosen two routes to amplify this impulse. First, we stress the use of modellingtechniquesfamiliar from economicsand decision theory. Instead of constructing complex, all-encompassing theories of preference change, the authors of this volume start with very simple, formal accounts of some possible and hopefully plausible mechanism of preference change. Eventually, these models may nd their way into larger, empirically adequate theories, but at this stage, we think that the most importantwork lies in building structure.Secondly, we stress the importance of interdisciplinary exchange. Only by drawing together experts from different elds can the complex empirical and theoretical issues in the modelling of preference change be adequately investigated.