1 Piketty and Saez, “Income Inequality in the United States, 1913-1998.” The relevant data are in Table A4, and are updated to 2002 in a supplement on Emmanuel Saez’s website.
2 Piketty and Saez, “Evolution of Top Incomes.” All figures were adjusted for inflation.
3 Piketty and Saez, “Income Inequality in the United States.”
4 Stein, Cult of Efficiency, p.199.
5 “The Case for Brands,” Editorial, The Economist, 360, 8238 (September 2001), p.3. For the corporate consultant’s quote, see “Who’s Wearing the Trousers?” The Economist, Sept. 6, 2001, online edition <http://www.economist.com/displaystory.cfm?story_id=770992>.
6 Clive Crook, “Globalisation and Its Critics,” The Economist, 360, 8241 (Sept. 27, 2001), online edition <http://www.economist.com/surveys/ PrinterFriendly.cfm?Story_ID=795995>.
7 Friedman, Lexus and the Olive Tree, p.10.
8 Tony Blair, campaign speech, London, June 23, 2004 <http://www.labour.org.uk/news/tbpublicserviceso6o4>.
9 See Stein, Cult of Efficiency, pp.199, 200, 202.
10 “Transcript: Bush, Kerry debate domestic policies,” CNN, <http://www.cnn.com/2004/ALLPOLITICS/10/13/debate.transcript2/index.html>.
11 The White House, “Specifics on the President’s Plan to Strengthen Retirement Security,” Feb. 28, 2002 <http://georgewbush-whitehouse.archives.gov/news/releases/2002/02/20020228-1.html>. A 401(k) is a type of retirement plan in which employees save and invest for their own retirement. The name comes for the section of the Internal Revenue Code that established these plans.
12 There are psychological aspects to choice, outside the scope of this book, that also explain why unlimited individual choice does not necessarily give us what we want, and show how a proliferation of choices can add stress, dissatisfaction, and bad outcomes to our lives. These psychological aspects are discussed in an engaging manner in Schwartz, Paradox of Choice. Some of the important work in the area has been carried out by Daniel Kahnemann and the late Amos Tversky, whose work uncovered subtle dependencies regarding how choices are framed and emphasized the importance of our adaptation over time to new situations.
1 Sen, Choice, Welfare and Measurement.
1 The list is based on Schelling, Micromotives and Macrobehaviour, p.216. The definition of the multi-player prisoner’s dilemma is based on Schelling’s list, p.218.
2 Sen, Development as Freedom, p.128.
3 The example is cited in many economics textbooks. See, for example, Lipsey, Ragan, and Courant, Microeconomics.
4 Schelling, Micromotives and Macrobehaviour, p.213.
5 Friedman, Hidden Order, pp.7-9.
6 Krugman, Accidental Theorist, p.76.
7 Dushoff, “License to Pollute.”
8 Krugman, Accidental Theorist, p.172.
9 The Washington Post, March 15, 2005, p.A01.
10 Monsanto Biotechnology Production Information website <http://www.monsanto.com/products/Pages/Biotechnology.aspx>.
11 Tenner, Why Things Bite Back, p.138.
12 Benbrook, “Troubled Times Amid Commercial Success,” pp.2-3.
13 Ibid.
14 Environmental News Service, “Herbicide Resistant Weeds Spring up in Bioengineered Soy Fields,” May 4, 2001 <http://www.ens-newswire.com/ens/may2001/2001-05-04-04.html>.
15 Royal Society of Canada, Elements of Precaution, p.123.
16 Gordon, “Plan Obsolescence.”
17 The London congestion issue is discussed in Surowiecki, Wisdom of Crowds, ch.7.
18 Quoted in Susan Pigg, “Belle of the Big-Box Bookstores,” The Toronto Star (Business Section), Feb. 3, 2001.
19 See Jacobs, Death and Life of Great American Cities, pp.436, 433.
20 Ibid., p.29.
21 Ibid.,p.433.
1 Oswald, “Happiness and Economic Performance,” p.1830.
2 Marx, “Wage Labour and Capital,” p.83.
3 Letter to the editor, The New York Times, Jan. 17, 2001.
4 See Schelling, Micromotives and Macrobehaviour.
5 Heath and Potter, Rebel Sell, p. 191. In the United States the title is Rebel Nation.
6 Ibid., p.129.
7 Ibid., p.322.
8 Ibid., p.114.
1 See Olson, Logic of Collective Action, p.1.
2 Ian McEwan, Enduring Love (London: Jonathan Cape, 1997), pp.14-15.
3 For the arguments here to hold, the number of times the game is repeated must be indeterminate. In the real world, where the distinction between one “move” and the next is rarely obvious, the restriction is not usually important.
4 See Axelrod, Evolution of Cooperation.
5 The term “social capital” is often associated with Robert Putnam. For example, see Putnam, Bowling Alone.
6 Axelrod, Evolution of Cooperation, p.126.
7 See Axelrod, Evolution of Cooperation, p.76
8 Brandenburger and Nalebuff, Co-opetition, p.170.
9 Ibid., p.184.
10 See Olson, Power and Prosperity.
11 See, for example, the writings of Matt Ridley in Ridley, Origins of Virtue; and Ridley and Low, “Can Selfishness Save the Environment?”
12 Olson, Logic of Collective Action, p.13.
13 Ostrom, Governing the Commons, p.14.
14 See Schelling, Choice and Consequence.
15 See Murray, Wealth of Choices, p.93.
16 Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change (New York: Fireside, 1990). Richard Carlson has a series of books on the “don’t sweat the small stuff ” theme, plus a “Don’t sweat” website. See, for instance, Carlson, Don’t Sweat the Small Stuff- and It’s All Small Stuff: Simple Ways to Keep the Little Things from Taking over Your Life (New York: Hyperion, 1997).
1 Klein, No Logo, p.xxi.
2 See chapter 1, p.6.
3 Quoted in Sen, Development as Freedom, p.122.
4 Information in this section is taken from Tim Weiner, “Lockheed and the Future of Warfare,” The New York Times, Nov. 28, 2004.
5 Ortega, In Sam We Trust, pp.248-56.
6 See Sen, Development and Freedom, p.6.
7 Kaul, Grunber, and Stern, Global Public Goods, p.xix.
8 Sen, Development and Freedom, p.262.
9 Stiglitz, “What I Learned at the Economic Crisis.” Stiglitz discusses the Russian economic transition in more detail in Stiglitz, Globalization and Its Discontents.
10 For an example of this thinking, see the quote from Thomas Friedman, p.7 here.
11 See Rodrik, Subramanian, and Trebbi, “Institutions Rule.”
1 See Schelling, Strategy of Conflict.
2 This example is discussed in Surowiecki, Wisdom of Crowds.
3 See Myerson, “Justice, Institutions, and Multiple Equilibria.”
4 Kingwell, Better Living, p 222.
5 Ibid.
6 See McQuaig, All You Can Eat, p.12.
7 Friedman, Hidden Order, p.166.
8 Krugman, “Talking about a Revolution.”
9 Tirole, Theory of Industrial Organization, p.7.
10 See Culler, Literary Theory, pp.82-83.
1 See Frank and Cook, Winner-Take-All Society.
2 The phrase was introduced by sociologists in the 1960s and popularized by Malcolm Gladwell in Gladwell, Tipping Point.
3 See Nielsen-Hayden, “Profitable Colors.”
4 Ibid.
5 The Portland Press, March 6, 2005.
6 Hamilton’s paper, “Geometry of the Selfish Herd,” reached a wider audience when retold by Richard Dawkins in Dawkins, Selfish Gene.
7 See Maynard Smith, Evolution and the Theory of Games and Did Darwin Get It Right? for examples, as well as Dawkins, Extended Phenotype and Selfish Gene.
8 Grant and Wood, Blockbusters and Trade Wars, pp.31-32.
9 See Borsook, Cyberselfish.
10 Jacobs, Cities and the Wealth of Nations.
11 Shiva, Biopiracy, pp.69-70.
12 Ibid., p.72.
13 Madeleine Bunting, “The Profits That Kill,” The Guardian (London), Feb.12, 2001.
14 Hepburn, “Introduction,” in Hepburn, ed., Can the Market Save Our Schools? p.1.
15 Frank, “Higher Education,” p.4.
16 The research was reported in Jesson, Educational Outcomes and Value Added by Specialist Schools.
17 Frank and Cook, Winner-Take-All Society.
18 Frank, “Higher Education,” p.5.
19 Stein, Cult of Efficiency, p.105.
20 Ibid., p.104.
21 Brighouse, “How Lotteries Could Make School Admissions a Whole Lot Fairer.”
22 Hepburn, “Can the Market Save Our Schools?” p.4.
23 Murray, Wealth of Choices, p.9.
24 Lewis, New New Thing, back cover blurb.
25 J.C. Ramo, “1999 Person of the Year,” Time, Dec. 27, 1999.
26 Taleb, Fooled By Randomness, p.113.
27 Ibid., p.27.
28 Ibid., pp.120-21.
29 Quoted by Carol Goar, “We’ve Become a Market Society,” The Toronto Star, July 27 2002; the second quotation is a paraphrase by Goar of Rubin’s ideas.
1 This tale is loosely based on Bikhchandani, Hirshleifer, and Welch, “Theory of Fads, Fashion, Custom, and Cultural Change.”
2 Keynes, General Theory of Employment, Interest and Money, p.156.
3 Klein, No Logo, p.69.
4 Ibid., p.72.
5 Ibid., p.73.
6 Gladwell, Tipping Point, pp.3-5.
7 Grant and Wood, Blockbusters and Trade Wars, p.48.
8 Industry analyst Larry Gerbrant, quoted in Grant and Wood, Block-busters and Trade Wars, p.84.
9 Jack Valenti, remarks before the Canadian Film and Television Production Association (CFTPA), Ottawa, Feb. 7, 2002.
10 Akerlof, “The Market for ‘Lemons.’”
11 Akerlof, “Writing ‘The Market for Lemons.’”
12 See Stiglitz, Whither Socialism? for a detailed discussion.
13 See Varian, Intermediate Economics, p.672.
14 The canonical statement of this point of view is Becker, Economics of Discrimination.
15 The case for minimum-quality standards in a variety of markets affected by asymmetric information was made by Leland, “Quacks, Lemons, and Licensing.”
16 The Society of Independent Brewers website, “‘Beer Revolution’ as Number of New Breweries Soars,” Sept. 14, 2005 <http://siba.co.uk/2008/09/‘beer-revolution’-as-number-of-new-breweries-soars/>.
17 Krugman, “Talking about a Revolution.”
1 See Dawkins, Selfish Gene, p.285.
2 This section is based on the work of Mancur Olson; especially Olson, Power and Prosperity.
3 See Olson, Power and Prosperity, p.7.
4 See Becker and Becker, Economics of Real Life, p.263.
5 Dirty Pretty Things, directed by Stephen Frears, script by Steven Knight, U.K., 2002.
6 Nasar, Beautiful Mind.
1 See Akerlof and Kranton, “Economics and Identity,” “Identity and Schooling,” and “Identity and the Economics of Organizations.”
2 Nowak, Page, and Sigmund, “Fairness Versus Reason in the Ultimatum Game,” p.1773.
3 Sigmund, Fehr, and Nowak, “Economics of Fair Play,” p.83.
4 Elster, “Doing Our Level Best,” pp.12-13.
5 See, for example, Rapoport and Chammah, Prisoner’s Dilemma.
6 Pierson, Gender Trials, p.134, quoted in Akerlof and Kranton, “Economics and Identity.”
7 Akerlof and Kranton, “Economics and Identity,” pp.736-37, quote a U.S. Supreme Court decision: “an employer who objects to aggressive traits in women but whose positions require this trait places women in an intolerable and impermissible Catch 22.”
8 See Akerlof and Kranton, “Economics and Identity.”
9 Akerlof and Kranton, “Identity and Schooling,” p.1182. The student is quoted in Douglas E. Foley, Learning Capitalist Culture: Deep in the Heart of Texas (Philadelphia: University of Philadelphia Press, 1990).
10 Jacobs, Death and Life of Great American Cities, p.447.