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Suggested Reading Syllabus Yale

Yale. Course Outline for Industrial Organization, Behavior, and Public Policy. Nelson, 1973

 

Richard R. Nelson was an Oberlin College undergraduate (B.A. 1952) and received his Ph.D. from Yale University (1956). He was a senior staff economist at the Council of Economic Advisers in the Kennedy Administration (1961-63) and Professor of Economics at Yale from 1968-1986 before accepting a professorship at Columbia University.

On Richard Nelson’s life and career:

Entry for Richard R. Nelson written by Johann Peter Murmann for the Encyclopedia of Strategic Management.

Sidney G. Winter’s speech at the “Nelson Fest” held in New York City, October 13, 2000.

Warning: the original mimeographed course outline was plagued with misspellings that I have tried to correct. There are certainly others that have slipped through my editorial filter. For this transcription I need to be explicit: Caveat lector!

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ECONOMICS 140A
Industrial Organization, Behavior, and Public Policy
Richard R. Nelson

Reading List
Fall Term 1973

* Assigned
** Material I assume you are familiar with, for review

Sept. 11, 18

  1. Perspectives on the Economic Organization Problem.
    1. The Problem Writ Large.
      1. R. Dahl*, A Preface to Democratic Theory, Chapt. 4.
      2. A. Sen**, Collective Choice and Social Welfare, Chap. 2, 3, 6.
      3. H. Simon*, Administrative Behavior, Chapters 1 & 3.
      4. H. A. Simon “The Changing Theory & The Changing Practice of Public Administration” in I. Pool (ed.) Contemporary Political Science.
      5. A. Etzioni, Modern Organizations, Chaps. 1 & 2.
      6. F. Knight, The Economic Organization, Chap. 1.
      7. R. Dahl and C. E. Lindblom, Politics, Economics, and Welfare, Chapt. 1.
      8. L. Hurwicz, “The Design of Mechanisms for Resource Allocation” AER May 1973.
      9. J. Marschak & R. Radner, Economic Theory of Teams.
      10. B. Ward, The Socialist Alternative.

Sept. 18

    1. Industrial Organization
      1. F. M. Scherer*, Industrial Market Structure and Economic Performance, Chapt. 1.
      2. R. Caves, Industrial Organization.
      3. R. Coase*, “Industrial Organization: A Proposal for Research” in V. Fuchs ed. Policy Issues & Research Opportunities in Industrial Organization.

Sept. 25

  1. Private Purchase and Market Supply as an Organizational Solution.
    1. The Role of Prices, For-Profit Suppliers, Competition.
      1. F. Knight*, The Economic Organization, Chapt. 2.
      2. O. Lange**, “On the Economic Theory of Socialism,” in Lange and Taylor, On the Economic Theory of Socialism, pp. 72-86.
        Also reprinted in M. Bornstein (ed.) Comparative Economic Systems.
      3. F. Bator**, “The Simple Economics of Welfare Maximization”, American Economic Review, March, 1957.
      4. T. C. Koopmans, Three Essays on the State of Economic Science, Essay I.
      5. F. Hayek*, “The Use of Knowledge in a Society,” American Economic Review, Sept. 1945.
      6. J. Schumpeter, “The Process of Creative Destruction”, Chapt. 7 in Capitalism, Socialism, and Democracy.
      7. J. K. Galbraith*, “The Economics of Technical Development”, Chapt. 7 in American Capitalism.
      8. J. M. Clark*, Competition as a Dynamic Process, Chapt. 4.
      9. F. M. Scherer*, Industrial Market Structure and Economic Performance, Chapt. 2.

Oct. 2,9

    1. Sources and Consequences of Monopoly Power.
      1. Scherer*, Industrial Market Structure and Economic Performance, Chapts. 3, 4, & 17.
      2. A. Harberger*, “Monopoly and Resource allocation,” AER, May 1954.
      3. O. Williamson*, “Economies as an Antitrust Defense,” AER, March 1968.
      4. H. Liebenstein*, “Allocative Efficiency vs. X-Efficiency,” AER, June, 1966.
      5. J. Bain, “Economies of Scale, Concentration and Conditions of Entry in Twenty Manufacturing Industries,” AER 1954.
      6. F. Modgliani, “New Developments on the Oligopoly Front,” JPE June 1958.
      7. G. Stigler*, “A Theory of Oligopoly,” JPE, Feb. 1964.
      8. J. K. Galbraith, The New Industrial State, Chapts. 1-3.
      9. Mason and Kaysen essays*, in E. Mason (ed.) The Corporation and Modern Society.
      10. J. Markham*, “An Alternative Approach to the Concept of Workable Competition,” in AEA Readings in Industrial Organization and Public Policy, (Heflebower and Stocking, eds.).
      11. Scherer*, Chapts. 18-22.

Note—a most detailed examination of Anti-trust and Regulation will be undertaken in Econ 140-b.

Oct. 9
and an
evening
discussion

    1. Externalities and Public Goods, Public Choice.
      1. F. Bator**, “The Anatomy of Market Failure,” QPE, August 1958.
      2. R. Coase*, “The Problem of Social Cost,” Jour. of Law and Economics, October, 1960.
      3. H. Demsetz*, “The Exchange and Enforcement of Property Rights” Jour. of Law and Econ., 1964.
      4. E. Mishan, “The Postwar Literature on Externalities” JEL, March 1971.
      5. C. Tiebout, “A Pure Theory of Local Public Expenditure” JPE, Oct. 1956.
      6. J. Buchanan*, “An Economic Theory of Clubs,” Economica, Feb. 1965.
      7. M. Olsen**, The Logic of Collective Action.
      8. A. Downs, An Economic Theory of Democracy, Part 1.
      9. Buchanan & Tullock*, The Calculus of Consent, Chapt. 6.
      10. Prest and Turvey*, “Cost-Benefit Analysis: A Survey,” Jour., Dec., 1955, –also in Survey of Economic Theory III.
      11. P. Steiner, “The Public Sector and The Public Interest” in Haveman & Margolis (eds.) Public Expenditures and Policy Analysis.
  1. More Complex Models of Organizational Behavior.

Oct. 16

    1. Organizational Goals.
      1. W. Baumol**, Business Behavior, Value and Growth, Ch. 1, 2, 4-8.
      2. O. Williamson*, “Managerial Discretion and Business Behavior”, AER, December, 1963.
      3. R. Marris*, “A Model of Managerial Enterprise,” QJE, May, 1963.
      4. J. Williamson, “Profits, Growth and Sales Maximization”, Economica, Feb. 1966.
      5. Kamerschen, “Ownership and Control and Profit Rates,” AER, June 1968.
      6. Marris and Wood (eds.) The Corporate Economy.

Oct. 23

    1. The Firm as an Organization: Behavioral Theory.
      1. R. Coase*, “The Nature of the Firm,” reprinted in Stigler and Boulding (eds.), Readings in Price Theory.
      2. Alchian and Demsetz, “Production, Information Costs and Economic Organization” AER, Dec. 1972.
      3. H. A. Simon, “A Comparison of Organization Theories,” in Models of Man.
      4. O. E. Williamson, “Hierarchical Control and Optimum Firm Size,” JPE, April 1967.
      5. H. A. Simon*, “Theories of Decision Making in Economics and Behavioral Science, AER June 1959.
      6. H. A. Simon, “A Behavioral Model of Rational Choice,” in Models of Man.
      7. J. March and H. Simon, Organizations.
      8. R. Cyert and J. March*, A Behavioral Theory of the Firm, Chaps. 1-8 (browse, 10.
      9. J. P. Crecine, Governmental Problem Solving (browse).
      10. F. Machlup*, “Theories of the Firm, Marginalist, Behavioral Management”, AER, March 1967.
      11. M. Schubik, “A Curmudgeon’s Guide to Microeconomics”, Journal of Economic Literature, June 1970.

Oct. 30

    1. Sector Models Compatible With Behavioral Organization Theories
      1. A. Alchian*, “Uncertainty, Evolution, and Economic Theory,” JPE, June 1950.
      2. G. Becker, “Irrational Behavior and Economic Theory,” JPE, Feb. 1962.
      3. S. Winter*, “Natural Selection and the Theory of the Firm”, Yale Economic Essays, Spring, 1964.
      4. H. Simon and C. Bonini, “The Size Distribution of Business Firm,”, AER Sept. 1958.
      5. Davis, Demster, Wildavsky*, “A Theory of the Budgetary Process,” American Political Science Review, Sept. 1967.
  1. Micro Economic Organization in a Dynamic World.

Nov. 6

    1. Schumpeterian Competition.
      1. J. Schumpeter*, The Theory of Economic Development, Chapts. 1 and 2.
      2. H. Simon*, “The Science of Design,” Chapt. 3 in The Sciences of the Artificial.
      3. H. Simon and J. March Organizations, Chapt 3.
      4. S. Winter*, “Satisficing, Selection, and the Innovating Remnant,” QJE, 1971, May.
      5. E. Mansfield, “Entry, Gibrat’s Law, Innovation, and the Growth of Firms,” AER, December, 1962.
      6. R. Nelson*, “Issues and Suggestions for the Study of Industrial Organization in a Regime of Rapid Technical Change,” in V. Fuchs (ed.) Policy Issues and Research Suggestions in Industrial Organization.
      7. A. Phillip*, Technical Change and Market Structure, Chapts. 1 and 8.
      8. W. Baumol, “Entrpreneurship and Economic Theory”, AER May 1968

Nov. 13
and an evening
session

    1. R&D and Technical Change.
      1. R. Nelson, M. J. Peck, and E. M. Kalachek*, Technology, Economic Growth and Public Policy, Chapters 2-5.
      2. F. Scherer, Chap. 15.
      3. R. Nelson (ed.)*, The Rate and Direction of Inventive Activity, Part D.
      4. Jacob Schmookler, Invention and Economic Growth, Harvard, 1966, Chapter 11.
      5. E. Mansfield, Industrial Research and Technological Innovation, Chapters 2, 5, 7, 8, 9.
      6. J. Jewkes, P. Sawers, and R. Stillerman, The Sources of Invention, St. Martin’s Press, 1958. Part I.
      7. Zvi Griliches*, “Hybrid Corn: An Exploration in the Economics of Technological Change,“ Econometrica, Oct. 1957.
      8. J. Coleman, E. Katz, and H. Menzel*, “The Diffusion of an Innovation Among Physicians,” Sociometry, December, 1959.
      9. Werner Hirsch*, “Manufacturing Progress Functions,” Review of Economics and Statistics May 1952.
      10. R. Vernon*, “International Investment and International Trade in Product Cycles”. QJE, May 1966.
      11. L. B. Mohr, “Determinants of Innovation in Organizations” American Political Science Review 1969.
  1. The Policy Issues Revisited.

Nov. 20

    1. Value Articulation, Demand Generation, Monitoring of Supply.
      1. C. E. Lindblom, The Policy Making Process (Browse).
      2. A. Wildavsky*, The Budgetary Process (Browse).
      3. T. J. Lowi, The End of Liberalism, (particularly Chap. 5).
      4. C. Schultze*, Politics and Economics of Public Spending.
      5. A. Rivlin, Systematic Thinking for Social Action.
      6. A. Wildavsky*, “The Political Economy of Efficiency”, Public Administration Review, Dec. 1966.
      7. A. Hirschman, Exit, Voice and Loyalty.

Nov. 27

    1. Command and Control of Non Market Supply.
      1. G. Allison*, “Models and the Cuba Missile Crisis,” Am. Polit. Sci. Review, Summer, 1969.
      2. A. Downs, Inside Bureaucracy.
      3. W. Niskanen*, Bureaucracy and Representative Government.
      4. H. Kaufman, The Forest Ranger, Chapts. 1, 2, 7.
      5. A. Downs*, “Competition and Community Schools,” in his Urban Problems and Prospects.
      6. J. Newhouse, “Towards a Theory of Non-Profit Institutions: An Economic Model of a Hospital,” AER, March 1970.
      7. Nelson & Krashensky*, “Some Questions Regarding Economic Organization: The Case of Day Care for Children” Mimeo.

Dec. 4
and an evening
session

    1. The Dynamics of Change.
      1. L. Davis and D. North*, Institutional Change and American Economic Growth, Part I.
      2. C. E. Lindblom, The Intelligence of Democracy. Chaps. 1, 2, 9.
      3. T. Schelling*, The Strategy of Conflict, Chap. 2 & 3.
      4. A. Kahn*, “The Tyranny of Small Decisions,” Kyklos, 1966.
      5. V. Goldberg*, “Institutional Change and the Quasi-Invisible Hand”, Mimeo.
      6. Edwards, Reich, and Weisskopf, The Capitalist System.
      7. E. Dunn, Economic and Social Development.

 

Source: From the personal papers of Irwin Collier.

Image Source: From the Nelson Fest, October 2000.