Minimizing Transaction Costs through Interfirm Trust and Transaction Costs
Isaac Wanasika, Assistant Professor, Monfort College of Business; and Terry Adler, Associate Professor, New Mexico State University
Organizations do not have divine powers to foresee the future. There are ever-present hazards due to unknown externalities, bounded rationality, and opportunism among actors. Ex post contract enforcement of noncompliance through legal mechanisms is a weak and often ineffective remedy, as the legal process can be expensive, time-consuming, and damaging to both parties’ reputations. Organizations can minimize consequences of unforeseen contractual hazards by implementing far-sighted strategies that deliberately develop incomplete contracts with room for negotiation. This form of contracting is particularly useful in the presence of interfirm trust.
Wall Street and Indians: Barriers to Tribal Capital Market Access
Gavin Clarkson, NMSU Department of Finance
Wall Street in New York City may be considered the financial center of the world, but the original wall on Wall Street was built to keep the Indians out. Despite the initial ‘purchase’ of Manhattan Island, the mythos of which is often used to falsely enshrine Indians as incapable of understanding land ownership or capitalism, hostilities frequently broke out between the Dutch and the Indians. In 1653, Director-General Peter Stuyvesant ordered a wall built along the northern border of New Amsterdam to keep the Indians out. The path going along that wall was called the Walstraat, and when the English later took over the colony, New Amsterdam became New York and Walstraat became Wall Street. More than a century later, the New York Stock Exchange was founded, eventually locating at 11 Wall Street. Unfortunately Wall Street has remained true to its origins and has excluded Indian tribes from equal participation in the capital markets, although Wall Street has had some help in this regard from Federal regulation.
Complete Article: Wall Street and Indians: Barriers to Tribal Capital Market Access
Christopher A. Erickson
In a somewhat surprising development, the Las Cruces economy contracted in the last 12-months, at least as measured by employment. It appears that the city is in recession and is in a double dip. A closer look at the data indicates that employment loss is accounted for entirely by reduction in government jobs.
Complete Article: Talking Points