Business
-

SAMUEL BOWLES, (PhD, Economics, Harvard University) is Research Professor at the Santa Fe Institute where he heads the Behavioral Sciences Program. He is also Professor of Economics at the University of Siena. He taught economics at Harvard from 1965 to 1973 and at the University of Massachusetts, where he is now emeritus professor. His recent studies on cultural and genetic evolution have challenged the conventional economic assumption that people are motivated entirely by self-interest. These have included the mathematical modeling and agent-based computer simulations of the evolution of altruistic behaviors and behavioral experiments in 15 hunter-gather and other small-scale societies. Recent papers have also explored how organizations, communities and nations could be better governed in light of the fact that altruistic and ethical motives are common in most populations. Bowles' current research also includes theoretical and empirical studies of political hierarchy and wealth inequality and their evolution over the very long run. 

His scholarly papers have appeared in Science, Nature, American Economic Review,Theoretical Population Biology, Journal of Theoretical Biology, Journal of PoliticalEconomy, Quarterly Journal of Economics, Behavioral and Brain Science, Philosophy and Public Affairs, Journal of Public Economics, Theoretical Primatology, Proceedings of the National Academy (USA), Harvard Business Review, Journal of Economic Literature, Journal of Economic Perspectives, and the Economic Journal. 

His recent books include Microeconomics: Behavior, Institutions and Evolution(Princeton University Press, 2004), Moral Sentiments and Material Interests: the Foundations of Cooperation in Economic Life (MIT Press, 2005), Unequal Chances: Family Background and Economic Success (Princeton 2004), Poverty Traps (Princeton 2006), Inequality, Cooperation and Environmental Sustainability (Princeton 2005), Globalization and Egalitarian Redistribution (Princeton, 2006), Foundations of Human Sociality: Economic Experiments and Ethnographic Evidence in 15 Small-scale Societies. (Oxford University Press. 2004) and Understanding Capitalism: Competition, Command and Change (Oxford 2004). 

He has also served as an economic advisor to the governments of Cuba, South Africaand Greece, to presidential candidates Robert F. Kennedy and Jesse Jackson, to the Congress of South African Trade Unions and to South African President Nelson Mandela.

His next major work, A Cooperative Species: Human reciprocity and its evolution,co-authored with Herbert Gintis, will be published in 2011. Drawing on their recentresearch on cultural and genetic evolution and his empirical studies of behavior in smallscale societies, this work will explain why humans, unlike other animals, engage incooperation among large numbers of people beyond the immediate family. His CastleLectures at Yale University, Machiavelli's Mistake: Why good laws are no substitute forgood citizens, will be published in 2011 by Yale University press.

Encina Ground Floor Conference Room

Samuel Bowles, PhD. Research Professor Speaker Sante Fe Institute
Workshops
News Type
News
Date
Paragraphs

The fourth Korea-U.S. West Coast Strategic Forum was held on June 18th at Stanford to discuss current developments in North Korea and North Korea policy, the future of the U.S.-South Korean alliance, and a strategic vision for Northeast Asia. Former senior government officials and other leading experts from the United States and South Korea participated. The forum agenda and the executive summary available.

Participants from the United States included:

  • Michael H. Armacost, Shorenstein Distinguished Fellow, Shorenstein Asia-Pacific Research Center (APARC), Stanford University
  • Michael Chinoy, Senior Fellow, University of Southern California, U.S.-China Institute; former CNN foreign correspondent
  • Siegfried S. Hecker, Co-Director of Center for International Security and Cooperation (CISAC), Stanford University; and Professor (Research), Department of Management Science and Engineering; FSI Senior Fellow
  • David C. Kang, Professor of International Relations and Business, University of Southern California; Director, USC Korean Studies Institute
  • Stephen D. Krasner, Professor of International Relations and Business, Deputy Director of Freeman Spogli Institute, Stanford University
  • John W. Lewis, William Haas Professor of Chinese Politics, Emeritus, Stanford University; CISAC Faculty Member; FSI Senior Fellow, by courtesy
  • Kyung-Ae Park, Associate Professor, Korea Foundation Chair, Institute of Asian Research, University of British Columbia
  • William J. Perry, Michael and Barbara Berberian Professor (at FSI and Engineering) and Co-director of the Preventive Defense Project at CISAC; FSI Senior Fellow
  • Gi-Wook Shin, Director, Shorenstein APARC; Director, Korean Studies Program and Tong Yang, Korea Foundation, and Korea Stanford Alumni Chair of Korean Studies; Professor of Sociology; FSI Senior Fellow
  • David Straub, Associate Director, Korean Studies Program, Shorenstein APARC; former Director, Office of Korean Affairs, U.S. State Department
  • Philip W. Yun, Vice President for Resource Development, The Asia Foundation
    Participants from South Korea
  • Yun Young Cho, Associate Professor, Chung-Ang University
  • Ro Myung Gong, Chairman, The Sejong Foundation; former Foreign Minister
  • Young Sun Ha, Professor, Seoul National University
  • Yong Ho Kim, Professor, Inha University; former President of Korea Political Science Association
  • Sangho Lee, Research Fellow, The Sejong Institute (Program Coordinator)
  • Yong Ok Park, Governor, South Pyongan Province; former Vice Minister of Defense
  • Sang Woo Rhee, Head, Presidential Commission for National Security Review; former President, Hallym University
  • Gi Woong Son, Senior Research Fellow, Korea Institute for National Unification
  • Dae Sung Song, President, The Sejong Institute
Hero Image
IMG 7563 43
All News button
1
Authors
Francis Fukuyama
News Type
Commentary
Date
Paragraphs
Opponents of immigration reform see illegal immigrants as criminals who will disregard U.S. laws once in the country, writes Frank Fukuyama in the Wall Street Journal, but they are better described as "informal" rather than "illegal." Reform that provides hardworking illegal immigrants with a path to citizenship should be seen as an effort to move people from a dangerous informal system to one based on a rule of law.

There is a widespread perception of a strong link between immigrants and crime. It is common to hear those who oppose immigration argue that the first act illegal immigrants commit on U.S. soil is to break the law-that is, our immigration laws-and that they are ipso facto criminals who will continue to disregard U.S. laws once in the country. Those making this argument are generally steadfastly opposed to any immigration reform that will provide the 10 million to 12 million illegals already in the country any path to citizenship, on the grounds that such an "amnesty" would reward law-breaking.

The association of immigrants with crime is strengthened by the weekly barrage of news about drug and gang violence in Mexico as the government of Mexican President Felipe Calderón seeks to crack down on that country's powerful drug mafias. And long before the Mexican drug war, Americans were threatened by Colombian cartels, Salvadoran street gangs, and other criminal groups from Latin America. Moreover, it is perfectly true that the simple fact of being an illegal immigrant induces one to break further laws: One is reluctant to buy mandated auto insurance, pay taxes, or register businesses for fear of deportation.

There is indeed a huge problem of crime originating in Latin America and spilling into the United States. This is almost wholly driven by the enormous demand for drugs from the U.S. There are many things we can and should do to mitigate this problem, but it will persist as long as that demand remains high.

But the problem of gangs and drug violence should not be confounded with the behavior of the vast majority of illegal immigrants to the U.S., who by and large are seeking the same thing that every immigrant to America has wanted since the time of the Mayflower: to better their condition and that of their families. They are not criminals in the sense of people who make a living by breaking the law. They would be happy to live legally, but they come from societies in which legal rules were never quite extended to them. They are therefore better described as "informal" rather than "illegal."

Understanding this distinction requires knowing something about the social order in Latin America or, for that matter, in many other developing countries. These societies are often characterized by sharp class distinctions between a relatively small, well-educated elite and a much broader and poorer population.

The rule of law exists in places like Mexico, Colombia and El Salvador; the problem is that access to the legal system tends to be a privilege of the well-to-do. The vast majority of illegal immigrants to the U.S. come from poor rural areas, or shantytowns in large cities, where the state-in the form of courts, government agencies and the like-is often absent. Registering a small business, or seeking help from the police, or negotiating a contract requires money, time and political influence that the poor do not possess. In many Latin American countries, as much as 70%-80% of the population lives and works in the informal sector.

The lack of legal access does not make everyone in these regions criminals. It simply means that they get by as best they can through informal institutions they themselves create. The Peruvian economist Hernando de Soto has written extensively about the lack of formal property rights, not just in his own country but throughout the developing world. The poor do not hold legal title to their homes, despite having lived in them for years, because of the insuperable barriers the system throws up to formal registration. So they squat in their homes, constantly insecure and unable to use their property as collateral.

The poor are entrepreneurial and form businesses like restaurants and bus companies, but they are unlicensed and don't conform to official safety rules. They and everyone else would be much better off if they could be brought into the formal legal system, but it is a dysfunctional political system that prevents that from happening.

What illegal immigrants to the U.S. have done is to recreate the informal system within our borders. The Americans who hire them are often complicit in this system by not providing benefits or helping them avoid taxes through cash payments. The gardeners and maids and busboys who participate in this game, along with their employers, are indeed breaking the law. But they are in a very different category from the tattooed Salvatrucha gang member who lives by extortion and drug-dealing.

A comprehensive immigration reform that provides hardworking illegal immigrants with an ultimate path to citizenship should not be regarded as rewarding criminal behavior. It should be seen as an effort to move people from a dangerous informal system to one characterized by a modern rule of law.

We need, of course, to control much better the total number of people coming into the country, which can ultimately be done only through stronger enforcement of employment rules. If we can better distinguish between illegal and informal in our political discourse, then we can begin to concentrate our resources on going after those in the immigrant population who are genuinely dangerous criminals.

 

Hero Image
fukuyama headshot
All News button
1
News Type
News
Date
Paragraphs
New Draper Hills Summer Fellows come to Stanford to study linkages between democracy, development, and the rule of law

Rising leaders from a diverse group of nations in transition, including China, Russia, Ukraine, Syria, Iran, Iraq, Pakistan, Egypt, Kenya, Zimbabwe, Mozambique, and Nigeria arrived on campus on July 25 for a three-week seminar as Draper Hills Summer Fellows on Democracy and Development. Initiated by FSI's Center on Democracy, Development, and the Rule of Law (CDDRL) six years ago, the program has created a network of some 139 leaders from 62 transitioning countries.  This year's exceptional class of  23 fellows includes a deputy minister of Ukraine, current and former members of parliament (including a deputy speaker), leading attorneys and rule of law experts, civic activists, journalists, international development practitioners, and founders of non-governmental organizations (NGOs). (One fellow needed to withdraw because he was named to the Cabinet of the new Philippine president, Noynoy Aquino).

Draper Hills Summer Fellows are innovative, courageous, and committed leaders, who strive to improve governance, enhance civic participation, and invigorate development under very challenging circumstances"
- Larry Diamond
"Draper Hills Summer Fellows are innovative, courageous, and committed leaders, who strive to improve governance, enhance civic participation, and invigorate development under very challenging circumstances," says CDDRL Director Larry Diamond. "This year's fellows are an inspiring group. They have come here to learn from us, but even more so from one another. And we will learn much from them, about the progress they are making and the obstacles they confront as they work to build democracy, improve government accountability, strengthen the rule of law, energize civil society, and enhance the institutional environment for broadly shared economic growth."

The three-week seminar is taught by an interdisciplinary team of leading Stanford faculty. In addition to Diamond, faculty include FSI Senior Fellow and CDDRL Deputy Director Kathryn Stoner; Stanford President Emeritus Gerhard Casper; FSI Deputy Director and political science Professor Stephen D. Krasner; Olivier Nomellini Senior Fellow Francis Fukuyama; professor of political science, philosophy, and law Joshua Cohen; professor of pediatrics and Stanford Health Policy core faculty Paul H. Wise; visiting associate professor Beth van Schaack; FSI Senior Fellow Helen Stacy; Walter P. Falcon, deputy director, Program on Food Security and the Environment; Erik Jensen, co-director of the Stanford Law School's Rule of Law Program; Avner Greif, professor of economics; Rick Aubry, lecturer in management, Stanford Graduate School of Business; and Nicholas Hope, director, Stanford Center on International Development.

Other leading experts who will engage the fellows include President of the National Endowment for Democracy Carl Gershman, United States Court of Appeals Judge Pamela Rymer, International Center on Nonviolent Conflict founding chair Peter Ackerman, Omidyar Network partner Matt Halprin, Conservation International's Olivier Langrand, executives of leading Silicon Valley companies, such as Google and Facebook, and media and nonprofit organizations in the Bay Area.  Michael McFaul, a Stanford political science professor and former CDDRL director, who now serves on the National Security Council as President Obama's chief advisor on Russia, will come to campus to teach a session on U.S. foreign policy in the Obama administration.

The demanding, but compelling curriculum will devote the first week of the seminar to defining the fundamentals of democracy, good governance, economic development, and the rule of law.  In the second week, faculty will turn to democratic and economic transitions and the feedback mechanisms between democracy, development, and a predictable rule of law. This week will include offerings on liberation technology, social entrepreneurship, and issues raised by development and the environment.  The third week will turn to the critical - and often controversial - role of international assistance to foster and support democracy, judicial reform, and economic development, including the proper role of foreign aid.

Our program helps to create a broader community of global activists and practitioners, intent on sharing experiences to bring positive change to some of the world's most troubled countries and regions"
- Kathryn Stoner-Weiss
The fellows themselves also lead discussions, focused on the concrete challenges they face in their ongoing work in political and economic development. "Fellows come to realize that they are often engaged in solving similar problems - such as endemic corruption in different country contexts," says Kathryn Stoner-Weiss. "Our program helps to create a broader community of global activists and practitioners, intent on sharing experiences to bring positive change to some of the world's most troubled countries and regions."

The program has received generous gifts from donors William Draper III and Ingrid Hills.  Bill Draper made his gift in honor of his father, Maj. Gen. William H. Draper, Jr., a chief advisor to Gen. George Marshall and chief diplomatic administrator of the Marshall Plan in Germany, who confronted challenges comparable to those faced by Draper Hills Summer Fellows in building democracy, a market economy, and a rule of law, often in post-conflict conditions. Ingrid von Mangoldt Hills, made her gift in honor of her husband, Reuben Hills, president and chairman of Hills Bros. Coffee and a leading philanthropist. The Hills project they ran for 12 years improved the lives of inner city children and Ingrid saw in the Summer Fellows Program a promising opportunity to improve the lives of so many people in developing countries.

Thanking the program's benefactors, Larry Diamond says, "The benefit to CDDRL faculty and researchers is incalculable, and we are deeply grateful for the vision and generosity of Bill Draper and Ingrid Hills." As he and Kathryn Stoner-Weiss state, "The Draper Hills Summer Fellows Program allows us to interact with a highly, talented group of emerging leaders in political and economic development from diverse countries and regions. They benefit from exposure to the faculty's cutting edge work, while we benefit from a cycle of feedback on whether these ideas work in the field."  Like CDDRL, which bridges academic theory and policy, the Draper Hills Summer Fellows Program, they note, "is an ideal marriage between democratic and development theory and practice."

For additional details on the program or to request permission to attend a session, please contact program coordinator Audrey McGowan, audrey.mcgowan@stanford.edu.

Hero Image
draperhills july25 2010 logo
All News button
1
Paragraphs

The 2008–2009 financial crisis demands we look anew at the role of corporations, and the working of financial markets around the world. In this challenging and insightful book, one of our most eminent economists provides a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.

In recent decades the firm has predominantly been seen as an organization run and governed in the interests of shareholders, where management acts as the agent of shareholders, and the workers simply as instruments for share-value maximization. This book reverses this viewpoint. It sees corporations as associational cognitive systems where "cognitive actions" are distributed amongst managers and workers, with shareholders supplying "cognitive tools" and monitoring their use in the systems. Aoki analyses the different relationships that can exist between shareholders, managers, and workers from this perspective, and identifies a range of different models of organizational architecture and associated governance structures. He also discusses ways in which corporations act as players in social, political, and organizational games, as well as global economic games; how these inter-related social dynamics may change particular, distinctive national structures into the diversity incorporated in the global corporate landscape; and how they now call for new roles for financial markets.


"Masahiko Aoki uses the social mathematics of game theory to reveal the deep structure of corporate governance systems, in the process explaining the persistence of diversity under conditions of globalization. His profound and highly original analysis speaks directly to the issue of corporate governance reform in the aftermath of the financial crisis of 2008–9."
-Simon Deakin, Professor of Law, University of Cambridge

"The recent wave of fraud, corruption, and fiscal irresponsibility at the highest corporate levels dramatizes the need for a model of the modern corporation that is at the same time deeply economic in the recognition of the centrality of incentives, and deeply sociological in the recognition of the centrality of social norms and a culture of corporate morality. Professor Aoki has combined his magisterial knowledge of business organization with a foundational study of the role of culture in epistemic game theory to produce, for the first time, a truly transdisciplinary model of the corporation."
-Herbert Gintis, Santa Fe Institute

"This is a path breaking book that provides a rigorous analysis of the cognitive underpinnings of corporations. It gives fundamental insights into the diversity of organizational forms that exist and the association of these with the historical, political, social, and technological contexts within which they operate. As with so much of Professor Aoki's work, it will radically alter the way in which we view the corporation."
-Colin Mayer, Peter Moores, Dean, Saïd Business School, University of Oxford

"A pioneering contribution which formalizes in game theoretic language complex institutional structure and environment of the corporation both at a moment of time and over time."
-Douglass C. North, Nobel Laureate in Economics 1993, Spencer; T. Olin Professor in Arts and Sciences, Washington University in St. Louis

All Publications button
1
Publication Type
Books
Publication Date
Journal Publisher
Oxford University Press
Authors
Masahiko Aoki
Number
0199218536
Authors
News Type
News
Date
Paragraphs
On September 7, 2010, the Program on Energy and Sustainable Development in collaboration with the Stanford University's Graduate School of Business and Stanford Law School hosted an all-day conference on "Climate Policy Instruments in the Real World" in the Bechtel Conference Center. This conference featured presentations by leading researchers on the political, economic, and regulatory challenges associated with major climate policy instruments.
All News button
1
News Type
News
Date
Paragraphs
PESD Director Frank Wolak delivered his presentation on "Symmetric Treatment of Load and Generation: A Necessary Condition for Demand Response to Benefit Wholesale Market Efficiency and Manage Intermittency" in his keynote for Agrion's "The Missing Link: Constructing a Dynamic Pricing Plan for a Smarter Grid" event on June 9, 2010.
Hero Image
Electric pylon jusben scenery
All News button
1
-

California is like many states whose electricity customers are still protected by real-time price risk through fixed retail price.  This fixed retail price, however, restricts the consumer's ability to save money by reducing consumption during peak hours. 

Those queasy about allowing or subjecting customers' to dynamic pricing are up for a fight; major technological barriers to dynamic pricing will soon be eliminated as all three of California's IOUs will have interval meters.  The Home Area Network segment of the Smart Grid Ecosystem Broadband Plan includes some strong words for State PUCs, urging them to in turn push utilities to deliver real time pricing data to consumers.  What remains to be seem is: What set of pricing plans would satisfy both HAN vendors and the PUCs?

Panel discussion topics:

  • Is some dynamic pricing available?
  • What will the plans look like?
  • Research questions
  • What set of pricing plans would satisfy both HAN vendors and the PUCs?

Westin Hotel
Palo Alto, CA

Stanford University 
Economics Department 
579 Jane Stanford Way Stanford, CA 94305-6072 

Website: https://fawolak.org/

(650) 724-1712 (650) 724-1717
0
Senior Fellow at the Freeman Spogli Institute for International Studies
Holbrook Working Professor of Commodity Price Studies in Economics
Senior Fellow, by courtesy, at the Stanford Institute for Economic Policy Research
frank_wolak_033.jpg MS, PhD

Frank A. Wolak is a Professor in the Department of Economics at Stanford University. His fields of specialization are Industrial Organization and Econometric Theory. His recent work studies methods for introducing competition into infrastructure industries -- telecommunications, electricity, water delivery and postal delivery services -- and on assessing the impacts of these competition policies on consumer and producer welfare. He is the Chairman of the Market Surveillance Committee of the California Independent System Operator for electricity supply industry in California. He is a visiting scholar at University of California Energy Institute and a Research Associate of the National Bureau of Economic Research (NBER).

Professor Wolak received his Ph.D. and M.S. from Harvard University and his B.A. from Rice University.

Director of the Program on Energy and Sustainable Development
Date Label
Frank Wolak Keynote Speaker
Lectures
Subscribe to Business