TWO-DIMENSIONAL BERTRAND COMPETITION: BLOCK METRIC,EUCLIDEAN METRIC,AND WAVES OF ENTRY*

This paper examines two-dimensional spatial competition, with Bertrand price determination. With a block metric, equilibrium prices are significantly lower when market areas are squares than when they are diamonds (rotated squares) of the same size. If demand density grows, waves of entry occur, and the shapes of market areas change from squares to diamonds and back to squares again. The former change leaves prim unchanged, whereas the latter cuts prices in half. Results are also derived for a Euclidean metric, with square and hexagonal market areas. Optimal waves of entry are examined with the block metric. With either metric, the socially optimal market shape becomes suboptimal if market areas are constrained to be of the zero-profit size.     

THE BEHAVIORAL COSTS OF ECONOMIC INSTABILITY*

This paper reviews the literature reporting a connection between economic change and behavioral disorder. The literature is separated into individual and aggregate based research and the methodological issues raised by each approach are described. The implications of the research findings for illness prevention, remedial services and economic policy making are discussed. The authors argue that the social costs of mobile capital should be accounted and internalized because social justice as well as Economic and Psychological theory assume that an individual should bear the costs of his or her behavior.     

Conservatism,Aesthetic and Active: Reflections on Roger Scruton and Pierre Manent

Roger Scruton and Pierre Manent provide us much to admire, as authors and as men, and much to ponder. They can be seen as collaborators in the defense of the nation-state against the empty universalism of “human rights,” and, more generally, in exposing the boundless arrogance and blindness of modern rationalism insofar as it denies its inheritance from premodern sources. This defense of the nation-state and critique of secular rationalism are of vital interest to moral and political conservatives, and Scruton, for his part, has explicitly taken on the cause and the label of conservatism. But conservatives face an imposing and, I propose here, critically instructive obstacle in appropriating the teachings of these two contemporary giants. For, as soon as we begin to examine the foundations of their respective projects, Scruton's and Manent's approaches appear to be, not only quite different (and therefore, one might hope, complementary) but in an important sense directly opposed to one another. This opposition appears most directly in their respective estimates of the realm of politics: one would exaggerate little in saying that, for Manent, politics is everything, whereas Scruton wishes to constrict the reach of politics to the minimum. Thus, Scruton embraces the title “conservative” but understands it apolitically, whereas Manent declines to identify himself as conservative but fully embraces a political task essential to conservatism. Conservatives must confront this disconcerting opposition and see what can be learned from it.     

The national question: sociological reflections on nation and nationalism

The sociology of nation, national identity and nationalism has long been the subject of benign neglect. After examining the few positive contributions made by classical writers, we attempt to explain why the contribution of classical theory to the field is unreliable. In common with others we find that, for all that classical theory might treat the prominence of nation, national identity and nationalism as a passing phase, it in fact takes the existence of all three as givens to such an extent that they and their effects become invisible. But the sociology of nation and nationalism reached a turning point with the publication of Elie Kedourie's influential work in 1960. We explain the effect of this work on later writers, especially Ernest Gellner and Anthony Smith, and survey the work of these and other contributors to the field with an eye to their differences and similarities. We identify various stages in the development of the sociology of nation and nationalism, culminating in the most recent stage in which the significance of the subjective aspects of nationalism has received increased attention. We think there is room for a multiplicity of approaches to the subject and stress its central significance to sociology. We explain why nation, national identity and nationalism are certainly not in decline and suggest where the most fruitful lines of inquiry lie for future research.