Maximilian Auffhammer explored the question, “How Local Should Your Energy Retailer Be?” at the Energy Institute at Haas blog. He said the issue had come up over lunch in the office. The distribution utility of the future is going to buy electrons in this reordered market (mostly renewables and some fossils) and sell them to its … More Should Your Electricity Distributor Also Be Your Electricity Retailer?
Understanding the economy as a dynamic, complex system relies on the foundational work of several economists, including Adam Smith (of course) and Ronald Coase. As Coase observed in his 1991 Nobel Prize address, What I have done is to show the importance for the working of the economic system of what may be termed the … More Coase’s Influence on Economics, and Adam Smith’s Influence on Coase
Some of the most illuminating work in market design lately has been in payment for ecosystem services (PES). These projects provide examples of the continuing relevance of institutions to economic and policy outcomes, and the importance of Elinor Ostrom’s work on the diversity of governance institutions in common-pool resources; despite criticisms leveled at synthetic markets, … More Epistemology and Synthetic Market Design: Examples from Ecosystem Services
Lynne Kiesling It’s no secret that Elinor Ostrom has always been a role model for me; the KP archives contain many references to her work and accomplishments from both of us, and much of my thinking in my own work rests on ideas and inspirations that I have drawn from her work. Lin passed away … More Elinor Ostrom As a Role Model
Michael Giberson Sarah’s essay on reading and sympathy, explicated a bit in her post here at KP on manners, and Matt Zwolinski’s near contemporaneous remarks on the same topic, recalled to me one of my favorite ideas: the road to anarchy is paved with good manners. I mean “anarchy” in a good way, of course: “anarchy” … More The Road to Anarchy is Paved with Good Manners
Michael Giberson Some food for thought. For months and months, it seems, these three items – “Roast potatoes,” “Elinor Ostrom,” “Whole Foods competitors” – have dominated the “Top Searches” list in the Knowledge Problem site stats. We blog a lot about energy, economics, and public policy. Once in a while a bit of food or drink … More Roast Potatoes, Elinor Ostrom, Whole Foods Competitors
Michael Giberson YES! magazine presents an interview with Elinor Ostrom, “The Woman Who Just Might Save the Planet and Our Pocketbooks.” The sub-head teaser – “What if our economy was not built on competition?” – is a little over-heated. Nothing in Ostrom work, so far as I know, is opposed to competition. Rather, in the … More Elinor Ostrom Interview
Lynne Kiesling Hearty, heartfelt congratulations to Elinor Ostrom and Oliver Williamson for winning this year’s Economics Nobel! From the press release: Economic transactions take place not only in markets, but also within firms, associations, households, and agencies. Whereas economic theory has comprehensively illuminated the virtues and limitations of markets, it has traditionally paid less attention … More Nobel: Ostrom and Williamson!
Michael Giberson Among the news stories in response to Elinor Ostrom’s sharing of the Nobel prize for economics, an article from Alaska which mentions the important role played by Vincent Ostrom in the development of that state’s treatment of natural resources. Both Ostroms worked on related ideas and management of natural resources was central to … More Vincent and Elinor Ostrom and Public Ownership of Natural Resources
Lynne Kiesling Both Ostrom’s work on governance institutions and common-pool resources and Williamson’s work on governance institutions and the transactional boundary of the firm contribute meaningfully to our understanding of how individuals coordinate their plans and actions in decentralized, complex systems. One of the most important ideas that Williamson has developed in his work is … More More on Ostrom and Williamson, and Decentralized Coordination