Marketizing Sovereign Prerogatives: How to Sell Citizenship

How is a sovereign prerogative brought to market? We know much about how states shape markets and vice versa, but less about the dynamics when states not only set market rules, but are also the sole producer of the good. This article takes up the case of citizenship by investment—“golden passport” programs that offer citizenship in recognition of an investment in a country—to unpack the challenges that appear when states commodify sovereign prerogatives. In these cases, the state holds multiple roles that generate conflicts of interest and a concern for credibility. To address these concerns, states may adopt two strategies: institute a division of labor in issuing the product, and outsource elements of supervision to third-party actors. Empirically, the analysis shows how migration service providers retooled murky discretionary grants of citizenship in peripheral countries into formal citizenship by investment schemes. The conclusion addresses how these strategies apply in markets for other sovereign prerogatives, particularly government debt, and discusses the implications for citizenship and neoliberalism.

DESIGN CHOICES: MECHANISM DESIGN AND PLATFORM CAPITALISM

Mechanism design is a form of optimization developed in economic theory. It casts economists as institutional engineers, choosing a outcome and then arranging a set of market rules and conditions to achieve it. The toolkit from mechanism design is widely used in economics, policymaking, and now in building and managing online environments. Mechanism design has become one of the most pervasive yet inconspicuous influences on the digital mediation of social life. Its optimizing schemes structure online advertising markets and other multi-sided platform businesses. Whatever normative rationales mechanism design might draw on in its economic origins, as its influence has grown and its applications have become more computational, we suggest those justifications for using mechanism design to orchestrate and optimize human interaction are losing traction. In this article, we ask what ideological work mechanism design is doing in economics, computer science, and its applications to the governance of digital platforms. Observing mechanism design in action in algorithmic environments, we argue it has become a tool for producing information domination, distributing social costs in ways that benefit designers, and controlling and coordinating participants in multi-sided platforms.

Welcoming New Entrants into European Electricity Markets

In this review paper, we select four important waves of new entrants that knocked on the door of European electricity markets to illustrate how market rules need to be continuously adapted to allow new entrants to come in and push innovation forward. The new entrants that we selected are utilities venturing into neighbouring markets after establishing a strong position in their home market, utility-scale renewables project developers, asset-light software companies aggregating smaller consumers and producers, and different types of communities. We show that well-intentioned rules designed for certain types of market participants can (unintentionally) become obstacles for new entrants. We conclude that the evolution of market rules illustrates the importance of dynamic regulation. At the start of the liberalisation process the view was that we would deregulate or re-regulate the sector after which the role of regulators could be reduced. However, their role has only increased. New players tend to improve the sustainability of the electricity sector in environmental, social, or economic terms but might also present new risks that require intervention by regulators.

Design choices: Mechanism design and platform capitalism

Mechanism design is a form of optimization developed in economic theory. It casts economists as institutional engineers, choosing an outcome and then arranging a set of market rules and conditions to achieve it. The toolkit from mechanism design is widely used in economics, policymaking, and now in building and managing online environments. Mechanism design has become one of the most pervasive yet inconspicuous influences on the digital mediation of social life. Its optimizing schemes structure online advertising markets and other multi-sided platform businesses. Whatever normative rationales mechanism design might draw on in its economic origins, as its influence has grown and its applications have become more computational, we suggest those justifications for using mechanism design to orchestrate and optimize human interaction are losing traction. In this article, we ask what ideological work mechanism design is doing in economics, computer science, and its applications to the governance of digital platforms. Observing mechanism design in action in algorithmic environments, we argue it has become a tool for producing information domination, distributing social costs in ways that benefit designers, and controlling and coordinating participants in multi-sided platforms.

Peningkatan Kesejahteraan Masyarakat Melalui Konversi Lahan Pertanian ke Kelapa Sawit

This study aims to explore information on improving community welfare after converting agricultural land to oil palm land. Many of the villagers carry out land conversion to increase income as a means of fulfilling their daily needs, although in reality not all of them get welfare. The method used in this research is descriptive qualitative. Data mining was carried out by interview and documentation. Interviews were conducted with smallholders who converted land to oil palm, stakeholders and local government. The results of the interview were then triangulated with documentation obtained from library searches in the form of books, articles and previous research. The results of this study indicate an increase in the welfare of the community after land conversion but with very binding rules both from the state and from the prevailing market rules.

Welcoming new entrants into European electricity markets

We select four important waves of new entrants that knocked on the door of European electricity markets to illustrate how market rules need to be continuously adapted to allow new entrants to come in and push innovation forward. The new entrants that we selected are utilities venturing into neighbouring markets after establishing a strong position in their home market, utility-scale renewables project developers, asset-light software companies aggregating the assets of smaller consumers and producers, and different types of communities. We show that well-intentioned rules designed for certain types of market participants can (unintentionally) become obstacles for new entrants. We conclude that the evolution of market rules illustrates the importance of dynamic regulation. At the start of the liberalisation process the view was that we would deregulate or re-regulate the sector after which the role of regulators could be reduced. But their role has only increased. New players might also present new risks that require intervention by regulators.

A price on warming with a supply chain directed market

Existing emissions trading system (ETS) designs inhibit emissions but do not constrain warming to any fixed level, preventing certainty of the global path of warming. Instead, they have the indirect objective of reducing emissions. They provide poor future price information. And they have high transaction costs for implementation, requiring treaties and laws. To address these shortcomings, this paper proposes a novel double-sided auction mechanism of emissions permits and sequestration contracts tied to temperature. This mechanism constrains warming for many (e.g., 150) years into the future and every auction would provide price information for this time range. In addition, this paper proposes a set of market rules and a bottom-up implementation path. A coalition of businesses begin implementation with jurisdictions joining as they are ready. The combination of the selected market rules and the proposed implementation path appear to incentivize participation. This design appears to be closer to “first best” with a lower cost of mitigation than any in the literature, while increasing the certainty of avoiding catastrophic warming. This design should also have a faster pathway to implementation. A numerical simulation shows surprising results, e.g., that static prices are wrong, prices should evolve over time in a way that contradicts other recent proposals, and “global warming potential” as used in existing ETSs are generally erroneous.

Europe’s digital market rules set for overhaul

Headline EUROPE: Digital market rules set for overhaul

Can We Make the European Fundamental Freedoms Less Constraining? A Literature Review

This article reviews the legal and political science literatures on the extensive interpretation of the European fundamental freedoms and on possible ways out. The common market rules were originally laid down in an international treaty, the Treaty of Rome. In functional terms, this treaty became a de facto constitution, implying that its content, including the fundamental freedoms, were constitutionalised. We review how this constitutionalisation constrains legislators at the Member State and European levels. In order to identify possible ways out, we also review several reform options: institutional reforms of the European judicial system; the de-constitutionalisation of the fundamental freedoms; counterbalancing these freedoms with further strengthened social rights; and contestation of over-constitutionalisation within the given primary law framework. We conclude that reform options are available that could gradually free the legislators from the over-constitutionalisation of the common market rules. Such options should become part of the ‘Conference on the Future of Europe’ process and debates about EU reforms in general, as more flexibility is warranted in a heterogeneous EU.