European journal of law economics The WritePass Journal

European journal of law economics 1 Introduction European journal of law economics 1 Introduction2 The optimal choice of the firm without financial responsibility3 Financial responsibility4 Concluding remarksReferencesRelated 1 Introduction Liability rules are important tool of environmental risks management in Canada, United States and Europe. The major legislations are CERCLA (Comprehensive Environmental Response, Compensation and Liability Act) adopted by the American Congress in 1980 and the Directive of the European Parliament and the Council on Environmental Liability with regard to the Prevention and remedying of environmental Damages which came into force in April 2004. A  *E.J.L. E. 78  liability rule induces correct incentive for risk prevention only if information is symmetric and the potential injurer has sufficient wealth to cover his liability. Indeed, it is well known from the previous literature that when the injurers wealth is not sufficient to  pay  liability judgments ex post (the injurer is said to be judgment-proof) this leads to underprovision of care ex ante (Summers 1983; Shavell 1986). In the case of environmental risks, on the one hand, perfect control of firms actions in prevention is not possible, and on the other hand, the wealth of the  polluter  may be small relative to the clean-up costs and victims compensation. There are many  policies  to alleviate the judgment-proof problem. The first one is to extend liability to the parties who have a contractual relationship with the risky firm, the case under CERCLA which imposes extended liability to lenders. The economic analysis of the extended liability has given raise to mitigated results. Pitchford (1995) considers a one-period moral hazard model with two states of nature (accident or not). Since the loan fee fixed by the lender included his expected liability costs, the more the lender is liable, the more he charges the firm in the no-accident state. Then, the state of the nature â€Å"no-accident† becomes unfavourable for the firm and the full liability of the lender2  leads to a suboptimal level of effort whereas partial lenders liability allows achieving the optimal level of prevention. In a two-period model, Boyer and Laffont (1997) show that partial liability of lender is optimal. Consequently, these authors conclude that the society has to make a tradeoff between prevention and compensation. In an alternative setting in which environmental damages are stochastic and prevention cost is a monetary investment that needs external funding, Dionne and Spaeter (2003) show that lender extended liability has a positive effect on the firms prevention level if and only if an increase in the face value of the debt implies an increase in prevention investment. Moreover, Balkenborg (2001) and Lewis and Sappington (2001) show that the benefits of extending liability to lenders depend on the observability of the firms prevention level by the lender, the bargaining power of each party and the nature of environmental damages. Finally, Hutchison and Vant Veld (2005) consider a model with both observable damage-reducing activities and non-observable probability-reducing measures and show that introducing extended liability to lender induces judgement-proof firms with high gross profits to take socially optimal levels of ca re, those with intermediate gross profits to take suboptimal level of care and drives those with low gross profits out of business. Financial responsibility is another remedy for the judgment-proof problem. Under a regime of financial responsibility, the firm is required to demonstrate that the cost of the harm she can cause is covered. The most common instrument of financial responsibility is the insurance contract. But as it is well known, the compulsory liability insurance induces the efficient level of prevention only when the insurer is able to observe the prevention level performed by the firm (Shavell 1986; Jost 1996; Polborn 1998). Following the analysis of Jost (1996), Feess and*E.J.L. E. 79  Hege (2000, 2003) consider a model with monitoring-based incentives and show that the mandatory liability coverage for total harm leads to an allocation that is closed to the first-best. In this paper, we investigate how the socially optimal allocation can be implemented through ex ante financial responsibility and ex post strict liability rule. We do not restrict our analysis to insurance contract but on contrary analyze financial guarantee contract. Indeed, in the Directive of the European Parliament and the Council on environmental liability there is a focus on a future legislation that imposes financial responsibility on the polluting firms. Then we analyze the consequences of financial responsibility on the incitation to prevention in a context of asymmetric information and show that the first-best allocation may be attainable. This follows from the fact that the level of damages provides a signal of the firms prevention level (Lewis and Sappington 1999) and can be used to design an optimal contract. But contrary to Lewis and Sappington (1999), in our setting, prevention measures do not only involve a disutility for the firm but also reduce the funds available f or compensation and clean-up (Beard 1990; Lipowsky-Posey 1993; Dionne and Spaeter 2003; Dari-Mattiaci and De Geest 2005). We consider a firm which activity yields a non-random gross profit and generates random environmental damages. The firm can improve the distribution of damages by an investment in prevention at the beginning of the period and safety measures during the production process. At the end of the period, only the damages and the resources of the firm net of the prevention cost are observable. Moreover, it is assumed that the firms wealth is lower than the highest amount of damages its activity can generate. We establish a necessary and sufficient condition for the implementation of the socially optimal allocation in spite of moral hazard when the firm is mandated to cover the highest amount of damages its activity can generate. We also demonstrate that the set of contracts that implement the socially optimal level of prevention includes a particular contract of the form â€Å"reward or maximal penalty† which is closed to a finite risk product referred to as spread loss treaty. The re st of the paper is organized as follows. The following section presents the firms optimal choice in the absence of the financial responsibility regime. Section 3 investigates the impact of financial responsibility on the firms prevention level. Finally, Section 4 concludes. 2 The optimal choice of the firm without financial responsibility Consider a risk-neutral firm which activity generates a fixed profit P and creates a possibility of environmental damages ## ]0,  L[. The firm can improve the distribution of damages by an investment in prevention at the beginning of the period and safety measures during the production process; these two measures are represented by a single prevention variable denoted  e.  However, the reduction of risk generates a cost c(e) when the firm chooses a level of prevention  e.  Moreover we assume that before engaging in its activity, the firm has initial wealth (equity)  Rwhich can be partially used to cover the cost induced by prevention measures. Let  f(##/e) and  F(##/e) be respectively the density and the distribution function of the damages; the following is assumed: *E.J.L. E. 80  Ã‚  Assumption 1  ##e,  f(##/e) 0, decreases with ##.3  This means that the observation of a lower level of damage is relatively more likely if a higher level of prevention has been adopted. This assumption implies the first order stochastic dominance: ## ]0,  L[,Fe  (##/e) 0. Moreover,  Fe  (0/e) =  Fe  (L/e) = 0. Assumption 2  ## ]0,  L[,  Fee  (##/e) 0. This distribution function is strictly concave in  e.  4 Assumption 3  ce  (e) 0 and  cee(e) 0. The prevention cost is strictly convex in  e. Assumption 4  If the amount of damages is very high, the firms assets may be insufficient for compensation; then the firm will be pushed into bankruptcy. Assume that the discount rate is null so that the firms net value without investment in prevention noted ## equals  R  +  P.Formally, this liability assumption can be written as  L   ##. What about the optimal level of prevention from the firms point of view? The intuition suggests that a firm facing limited liability will underinvest in prevention. But, as stated by the following lemma this is not always true. Lemma 1  A judgment-proof firm does not always choose a suboptimal prevention level. Proof: See the â€Å"Appendix†. The social welfare criterion is assumed to be the minimization of the total cost which is the sum of the expected damages and the prevention cost. We assume that the regulator observes the prevention level. At the social optimum, the expected marginal benefit of prevention equals the expected marginal cost. The objective of the firm is to maximize its net revenue which equals to the sum of its profit and equity minus the expected liability payments (compensation and clean-up costs). The firm can only  pay  up to her assets. Hence the private expected marginal benefit is lower than the social one because of the partial internalization of environmental damages by the firm. Moreover, the private expected marginal cost of prevention is lower than the social one because the funds invested in prevention are not available for compensation and clean-up. At the private optimal level of prevention, the private expected marginal benefit of prevention equals the private expected marginal cost. Consequently, the optimal private level of prevention may be lower or higher than the socially optimal one, depending on which effect dominates. However, the judgment-proofness of the firm may result in a partial remediation of damages. One can think about compulsory liability insurance which covers the h ighest amount of damages as a solution to this problem. But it is well known from economics literature that when care is non-observable, a full insurance leads to underprovision of care by the insured. In the following section we demonstrate that under a guarantee structure, incentives work well even if it is  *E.J.L. E. 81  impossible to observe the care by the  polluter. The reason is that under the guarantee the  polluter  receives a return on investment in prevention. Moreover, this scheme provides the full coverage of damages: prevention and compensation are both satisfied. 3 Financial responsibility This section is devoted to the economic analysis of a hybrid regime of ex ante regulation through financial responsibility requirement and ex post strict liability. More precisely, in our setting the financial responsibility takes the form of a guarantee provided by another party that has deep pockets. Then the hybrid regime can be viewed as a regime of vicarious liability in which the guarantor and the firm are joint liable. As we know, in this setting, the victims generally choose to collect from the guarantor because the later has deep-pockets. Then, in what follows, we will assume that the firm and its guarantor are jointly liable and that it is the guarantor who has to compensate for the damages generated by the firm.5,6 The analysis is based on the principal-agent paradigm. In this framework, the firm is the limited liability risk neutral agent and the guarantor is the risk neutral principal. The prevention level performed by the firm and consequently the cost of such a measure are not observable by the principal. Moreover, the amount of damages and the  net  resources of the firm at the end of the period are observable. The timing of the model is as follows. First, the guarantor and the firm sign a contract which stipulates the state-contingent-payments (transfers) that the firm has to make to his guarantor. Secondly, the firm performs a level of prevention and bears the associated cost which is unobservable by the guarantor. Then, the profit is realized and the damages occur and finally the transfer is made to the guarantor. Moreover, it is assumed that the guarantor has all the bargaining power and his objective is to design a scheme of transfers that maximizes his profit. However, the guaran tor has to take into account some constraints. The first one is the participation constraint of the firm which reflects the fact that the financial guarantee  must  yield expected revenue at least equals to what the firm would have obtained without contracting (condition 1). The second one is the firms limited liability constraint (condition 2). The third constraint reflects the fact that the transfer is bounded below in such a way that the firm could be rewarded (condition 3).7  The last condition is the incentive compatibility constraint which reflects the optimal behaviour of the firm in choosing the prevention level (condition 4).8 *E.J.L. E. 82  Formally, if we denote  t(##) the transfer made by the firm when the amount of damages equals ##, the guarantors problem (P1) can be written as: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE subject to TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE The existence of schemes of transfers that solve the problem above is not guaranteed. Then it is essential to characterize the conditions under which the problem (P1) admits a solution for a given utility  u  (expected firm revenue) and a given prevention level  e.  We can establish the following result: Proposition 2  The problem  (P1)  admits a solution, i.e. the levels of utility u and prevention e can be implemented if and only if: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Proof:  See the â€Å"Appendix†. The intuition underlying the proposition 2 is the following. For a given level of prevention  e  it is not possible to find a scheme of transfers that gives a level of utility  u  if the marginal cost of such a measure is greater than the marginal benefit. Let us remark that the marginal benefit of prevention is reflected by the reduction of the expected transfers that the firm has to  pay  to her guarantor. We have demonstrated (see the â€Å"Appendix†) that there is a scheme  %23t(##) that gives the maximum marginal benefit of prevention, which equals [##   c(e)   B]Fe  (##). If this upper limit of the marginal benefit of prevention is lower than the marginal cost of prevention for a given  e,  then any scheme of transfers cannot implement the prevention level  e. From the analysis above we can derive the following result: Proposition 3  The social optimum  (u, e*)  can be implemented with the financial responsibility if and only if: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE *E.J.L. E. 83  Ã‚  Proof:  See the â€Å"Appendix† The left-hand-side term of the condition (5) represents the rate of change of the marginal benefit of prevention at the point  e* with a transfers scheme  %23t(##), whereas the right-hand-side represents the rate of change of the marginal cost of prevention at the same point. Consequently if there is a level of damage ## such that the rate of change of the marginal benefit is at least equal to the rate of change of the marginal cost of prevention then the social optimum can be implemented. The last step of the analysis is devoted to the characterization of a scheme of transfers that implements the first-best level of prevention. We can establish the following proposition: Proposition 4  The set of transfers that implement the socially optimal level of prevention contains a scheme of the following form: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Proof:  See the â€Å"Appendix† The scheme of transfers  23t(##) is such that if at the end of the period, the actual damage is lower than the target level ##, then the firm is rewarded by receiving the bonus payment B, so her net revenue at the end of the period equals ## Conversely if the actual damage is greater than the target level ##, then the payment made by the firm to the guarantor equals ##   c(e*) and the firm net revenue at the end is null. This form of contract can be approached to a spread loss treaty. It is an alternative risk transfer (ART) solution, more precisely a finite risk product. By this contract, the financial responsibility of the firm is transferred to her guarantor (that can be a bank or an insurer).9,10  At the beginning of the contract, the firm  pays  either annual or single premium into a so-called experience account. Furthermore, the two parties contractually agree on an investment return. The funds are used to compensation and the rest is returned to the client. But if the claims payments exceed the funds available, the client has to  pay  the remainder. In this paper, we consider a one-period model. Consequently, the model can be viewed as if we have aggregated the periods of the spread loss treaty. Moreover, if the realized damages are low, the funds into the experience account are sufficient for compensation whereas in the bad states of nature (high realized damages), the funds  *E.J.L. E. 84  are not sufficient. Hence, because of its limited liability, the firm cannot  pay  back the claims payments of the guarantor. Then, the guarantor takes this fact into account by penalizing the firm in the intermediate states of nature [those such that the amount of damages is between the target level ## and ##   c(e*)]. Consequently, the reward is used as an incentive device. 4 Concluding remarks A potentially judgment-proof firm may not internalize the social cost of its activity and then may have insufficient incentives to choose the socially optimal level of prevention. Whereas most of papers studied the incentive effect of extending liability to the lenders of the injurer-firm, this paper on contrary considers another remedy to the problems generated by the judgment-proofness. I demonstrate that a full financial responsibility (operation licence subject to the demonstration of a financial guarantee which covers the highest remediation cost) is compatible with the socially optimal level of prevention and establish a necessary and sufficient condition under which this is realized. Furthermore, I have shown that when the socially optimal outcome is attainable, a contract of the form â€Å"reward or maximum penalty† is included in the set of first-best solutions. Such a contract rewards the firm when the actual damages are lower than a target level because the guarantor infers that the firm took an adequate prevention level. Conversely, if the amount of the damages exceeds the target level, then the firm is maximally punished. This particular contract can be approach to an alternative risk transfer product referred to as spread loss treaty. Consequently, the alternative risk transfer solutions seem suited not only for the hedging of environmental risks, but also for incentive purpose. Finally, recall that the Directive of the European Parliament and the Council on Environmental Liability has a special focus on a future legislation which imposes financial responsibility on the polluting firms. It is necessary that before the promulgation of such legislation, European authorities help insurance and banking sectors to develop the market for environmental guarantees. Acknowledgments  I am very grateful to an anonymous referee and to the editor for helpful remarks on a previous version of the paper. I would like to thank Jean-Marc Bourgeon, Georges Dionne, Marie-Cà ©cile Fagart, Mahamadou Fall, Claude Fluet, Bruno Jullien, Anne Lavigne, Rà ©mi Moreau, Pierre Picard, Sandrine Spaeter, Jean-Marc Tallon and Daniel Zajdenweber. The paper also benefited from the comments of session participants of the 2005 SCSE congress in Charlevoix, 2005 AFSE congress in Paris and seminar participants at HEC Montrà ©al, Università © dOrlà ©ans, Università © de Sherbrooke and Università © du Quà ©bec Montrà ©al. Financial support by CREF-HEC and the hospitality of the Canada Research Chair in risk management are acknowledged. Appendix Proof of lemma 1 The social optimum  e* is the solution of the following problem: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE *E.J.L. E. 85  The associated first-order condition is given by: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE The firms problem can be written as: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE The left-hand-side term of Eq. 6 (7) represents the social (private) expected marginal cost of prevention and the right-hand-side represents the social (private) expected marginal benefit. From the comparison of (6) and (7)  eP  can be lower or higher than  e*. Proof of proposition 2 Part 1: u  ## [u,##   c(e)   B] Every level of utility  u  is given by the following expression: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Taking into account this expression, the objective function of the guarantor becomes: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Moreover, (2) and (3) imply: ##   c(e) ≠¥ ##  t(##)f(##/e)d## ≠¥Ã‚  B; thus 0≠¤u  Ã¢â€° ¤ ##   c(e)   B Consequently, the existence of a transfers scheme verifying (1), (2) and (3) implies that the utility of the firm is bounded:  u  ## [u,##   c(e)   B]. Note that the principals objective function depends only on the expected transfer (by  u). Therefore, all solutions that verify the agents incentive constraint and that have the  *E.J.L. E. 86  same expectation are equivalent from the principals point of view. However, the existence of such solutions is not guaranteed. Indeed, if the problem does not admit a solution, then it is not possible to implement a given level of prevention  e  for a given level of utility  u. Part 2: [##   c(e)   B]Fe  (##/e) ≠¥Ã‚  ce(e) Let us assume that  u  ## [u,##   c(e)   B], then the next step consists to establish conditions under which the incentive constraint (4) is satisfied. Let ## = {t(##)/B  Ã¢â€° ¤Ã‚  t(##) ≠¤ ##   c(e)##}, be the set of admissible transfers. Let us define:G[t(-)] = ##  t(##)fe(##/e)d##;  m  = min ##  t(##)fe(##/e)d## and  M  = max ##t(##)fe(##/e)d##. We can establish that  m  is strictly negative and  M  strictly positive.11  Thus the function  G  [t(.)] is bounded in the set of admissible transfers. Then the validity of the incentive constraint depends on the value taken by  m  as follows. Lemma 2  the incentive constraint is satisfied for a given e and u if and only if: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Lemma 3  the scheme of transfers  %23t(##)  which minimizes the function G  [t(-)] = ##  t(##)fe(##/e)d##  has the following form  12: TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE The second part of proposition 2 follows from lemmas 2 and 3. Proof of proposition 3 From proposition 2, we can derive that when the guarantors problem (P1) admits at least one solution, it is equivalent to the following problem (P1bis): TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Conditions (9) and (10) imply proposition 3. *E.J.L. E. 87  Ã‚  Proof of proposition 4 From the proposition 3 we know that the socially optimal prevention level can be achieved if  Fe(##/e*)/F(##/e*) ≠¥Ã‚  ce(e*)/u. Moreover, we can demonstrate that the function  Fe(##/e*)/F(##/e*) is not increasing in ##.13  Consequently, if  Fe(##/e*)/F(##/e*) ≠¥Ã‚  ce(e*)/u, there is a level of damages ## ## such that  Fe(##/e*)/F(##/e*) =  ce(e*)/u. References Balkenborg, D. (2001). How liable should a lender be? The case of judgment-proof firms and environmental risk: Comment.  American Economic Review, 91,  731-738. Beard, R. (1990). Bankruptcy and care choice.  RAND Journal of Economics, 21,  626-634. Boyer, M., Laffont, J.-J. (1997). Environmental risks and bank liability.  European Economic Review, 41,  1427-1459. Dari-Mattiacci, G., De Geest, G. (2005). Judgment Proofness under four different precaution technologies.  Journal of Institutional and Theoretical Economics, 161(1), 38-56. Dionne, G., Spaeter, S. (2003). Environmental risk and extended liability: The case of green technologies.  Journal of Public Economics, 87(5-6), 1025-1060. Feess, E., Hege, U. (2000). Environmental harm and financial responsibility.  Geneva Papers on Risk and Insurance, Issues and Practice, 25(2), 220-234. Feess, E., Hege, U. (2003). Safety monitoring, capital structure and financial responsibility.  International Review of Law and Economics, 23,323-339. Hutchison, E., Vant Veld, K. (2005). Extended liability for environmental accidents: What you see is what you get.  Journal of Environmental Economics and Management, 49,  157-173. Jost, P. (1996). Limited liability and the requirement to purchase insurance.  International Review of Law and Economics, 16,  259-276. Lewis, T., Sappington, D. (1999). Using decoupling and deep pockets to mitigate judgment-proof problems.  International Review of Law and Economics, 19,  275-293. Lewis, T., Sappington, D. (2001). How liable should a lender be? The case of judgment-proof firms and environmental risk: Comment.American Economic Review, 91,  724-730. Lipowsky-Posey, L. (1993). Limited liability and incentives when firms can inflict damages greater than worth.  International Review of Law and Economics, 13,  325-330. Pitchford, R. (1995). How liable should a lender be? The case of judgment-proof firms and environmental risk.  American Economic Review, 85,1171-1186. Polborn, M. (1998). Mandatory insurance and the judgment proof problem.  International Review of Law and Economics, 18,  141-146. Ringleb, A. H., Wiggins, S. N. (1990). Liability and large-scale long-term hazards.  Journal of Political Economy, 98,  574-595. Rogerson, W. (1985). The first-order approach to principal-agent problems.  Econometrica, 53,  1357-1367. Shavell, S. (1986). The judgment proof problem.  International Review of Law and Economics, 6,  45-58. Summers, J. S. (1983). The case of disappearing defendant: An economic analysis.  University of Pennsylvania Law Review, 132,  145-185. IRDES, 10 rue Vauvenargues, 75018 Paris, France e-mail: [emailprotected]; [emailprotected] E.J.L. E. 2010, 30(2), 77-87

The Components of an Intriguing Biography

The Components of an Intriguing Biography A biography is a story of a persons life, written by another author. The writer of a biography is called a biographer while the person written about is known as the subject or biographee. Biographies usually take the form of a narrative, proceeding chronologically through the stages of a persons life. American author  Cynthia Ozick notes in her essay Justice (Again) to Edith Wharton that a good biography is like a novel, wherein it believes in the idea of a life as a triumphal or tragic story with a shape, a story that begins at birth, moves on to a middle part, and ends with the death of the protagonist. A biographical essay is a comparatively short work of nonfiction  about certain aspects of a persons life. By necessity, this  sort of essay  is much  more selective than a full-length biography, usually focusing only on key experiences and events in the subjects  life. Between History and Fiction Perhaps because of this novel-like form, biographies fit squarely between written history and fiction, wherein the author often uses personal flairs and must invent details filling in the gaps of the story of a persons life that cant be gleaned from first-hand or available documentation like home movies, photographs, and written accounts. Some critics of the form argue it does a disservice to both history and fiction, going so far as to call them unwanted offspring, which has brought a great embarrassment to them both, as Michael Holroyd puts it in his book Works on Paper: The Craft of Biography and Autobiography. Nabokov even called biographers psycho-plagiarists, meaning that they steal the psychology of a person and transcribe it to the written form. Biographies are distinct from creative non-fiction such as memoir in that biographies are specifically about one persons full life story from birth to death while creative non-fiction is allowed to focus on a variety of subjects, or in the case of memoirs certain aspects of an individuals life. Writing a Biography For writers who want to pen another persons life story, there are a few ways to spot potential weaknesses, starting with making sure proper and ample research has been conducted   pulling resources such as newspaper clippings, other academic publications, and recovered documents and found footage.    First and foremost, it is the duty of biographers to avoid misrepresenting the subject as well as acknowledging the research sources they used. Writers should, therefore, avoid presenting a personal bias for or against the subject as being objective is key to conveying the persons life story in full detail. Perhaps because of this, John F. Parker observes in his essay Writing: Process to Product that some people find writing a biographical essay easier than writing an  autobiographical  essay. Often it takes less effort to write about others than to reveal ourselves. In other words, in order to tell the full story, even the bad decisions and scandals have to make the page in order to truly be authentic.

Aesops Fable of the Crow and the Pitcher

Aesops Fable of the Crow and the Pitcher One of Aesops most popular animal stories is this one, of a thirsty and ingenious crow. The text of the fable, from George Fyler Townsend, whose translation of Aesops Fables has been the standard in English since the 19th Century, is this: A Crow perishing with thirst saw a pitcher, and hoping to find water, flew to it with delight. When he reached it, he discovered to his grief that it contained so little water that he could not possibly get at it. He tried everything he could think of to reach the water, but all his efforts were in vain. At last he collected as many stones as he could carry and dropped them one by one with his beak into the pitcher, until he brought the water within his reach and thus saved his life. Necessity is the mother of invention. History of the Fable Aesop, if he existed, was a slave in the seventh century Greece. According to Aristotle, he was born in Thrace. His fable of the Crow and the Pitcher was well known in Greece and in Rome, where mosaics have been found illustrating the crafty crow and the stoic pitcher. The fable was the subject of a poem by Bianor, an ancient Greek poet from Bithynia, who lived under the emperors Augustus and Tiberius in the First Century A.D. Avianus mentions the story 400 years later, and it continues to be cited throughout the Middle Ages. Interpretations of the Fable The morals of Aesops fables have always been appended by translators. Townsend, above, interprets the story of the Crow and the Pitcher to mean that dire circumstance gives rise to innovation. Others have seen in the story the virtue of persistence: The crow must drop many rocks into the pitcher before he can drink. Avianus took the fable as an advertisement for the suave sciences rather than force, writing: This fable shows us that thoughtfulness is superior to brute strength. The Crow and the Pitcher and Science Again and again, historians have noted with wonder that such an ancient tale- already hundreds of years old in Roman times- should document actual crow behavior. Pliny the Elder, in his Natural History (77 A.D.) mentions a crow accomplishing the same feat as the one in Aesops story. Experiments with rooks (fellow corvids) in 2009 showed that the birds, presented with the same dilemma as the crow in the fable, made use of the same solution. These findings established that tool use in birds was more common than had been supposed, also that the birds would have had to understand the nature of solids and liquids, and further, that some objects (stones, for example) sink while others float. More Aesops Fables: The Ant and the DoveThe Bee and JupiterThe Cat and VenusThe Fox and the MonkeyThe Lion and the Mouse

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Response Paper 4 - Essay Example Historians in the intentionalist side of the divide believe that the Holocaust has been the Fuhrer’s objective all along and has, in fact, been in the offing since 1919. The policy, which came to be known as the Last Solution, has been credited to Hitler’s madness alone and no one else’s (or at least primarily) though, according to Totten & Feinberg, he was influenced by the anti-Semitism sentiments in Germany and Austria back in the nineteenth century (29). Here, the Nazi structure has been reduced to a mere tool – a mechanism carrying out Hitler’s specific orders to annihilate the Jews in Europe. On the other hand, the functionalist argument dilutes Hitler’s complicity in the Holocaust. The main premise of this stand is that anti-Semitism has flourished in the German society, particularly in the Nazi hierarchy, whose members either wanted drastic solutions to Germany’s problems or to please their Fuhrer or both. Here, it is assumed that such deep-rooted anger towards the Jews made it easier for the bureaucracy to adopt a coordinated program in so short a time to exterminate the Jewish population. According to Berger, there are no evidences that specifically points to direct orders from Hitler himself and that what has been determined was an order to purge Germany of Jews, but with no explicit command as to how this will be achieved (5). In examining the merits and demerits of the arguments raised by the intentionalist and functionalist perpsectives, two important facts emerge. First is that both have legitimate claims to credibility and significance. For example, there are rich sources that demonstrate the systematic evolution of Hitler’s hate towards the Jews and these underscored how it became easier for him to attempt to annihilate the race, using the war as a pretext. Here, it also became easier for historians to credibly justify the sheer insanity of the mass murder. The breadth and

Taxes Essay Example | Topics and Well Written Essays - 500 words

Taxes - Essay Example The country moves forward on account of the government and the government moves because of the income tax. The income tax is a way for the government to acquire money for the country and the money that is collected as the income tax is used to make country brawnier in every manner. A country is conceived to be powerful if it has a rapid growth process in every field such as Science and Aeronautics, Information Technology, Army & Navy Forces, Education, Civil Services, Film industry and many more. If it seems like the taxation laws are changing every second you around, it's not your imagination. If you see, over the past eight years, changes to the Tax Code have been made at a rate of more than one a day. According to the National Taxpayer Advocate office, there were 500 alterations in 2008 solely. Many of them concerned to the 2009 tax year. Amongst countries that serve as the base location for significant global businesses, the US now stands alone as the only country with both the worldwide taxation system and the corporate taxation rate over 30%. The Administration’s offers would further cut off the US in terms of taxation policy and further disadvantages US businesses competing in the global marketplace. At a time when the rest of the world is cutting down the tax burden on the foreign operations of domestic parties, the Administration’s proposals would importantly raise the taxation burden on the foreign activities of US companies, which would have substantial implications for all stakeholders and the US economy more largely.

Business plan of Towing Service Company Research Paper

Business plan of Towing Service Company - Research Paper Example The service industry is among the fastest growing sectors in US which has been expanding its horizon with zeal. In the last few years, the demand of towing service companies has increased significantly as the customers are looking for the professionals who can assist them in taking their vehicles to the auto repair outlets (Marsh, 2013). Since Orlando, Florida is offering huge potential for the towing service company, our organization will commence its business operations in January 2014 in this region. Brief description of the business and principals involved Our company has been present in the wrecker/towing service industry for many years and has been evaluating various expansion options so that it can offer the customized services to the customers. As the number of vehicle owners is increasing with the advent of time, it has become imperative for them to avail the services of a registered towing company who can provide them quick solutions for their auto related issues (Haq, 2013). We will make sure that the customers are provided all the required services with utmost ease and convenience. Since the vehicles can get broken down any instant on the road or any emergency situation can arise, the business of towing service will assist people who are caught up in such situations in resolving their matters quickly. All of our service providers will perform all the mandatory services with perfection so that the issues are avoided in future. This business will be beneficial for the society as the transportation safety will be enhanced by our expert offerings.

W5 BPO GROUP PPP OM Essay Example | Topics and Well Written Essays - 500 words

W5 BPO GROUP PPP OM - Essay Example Below is how the two tools can be applied to the case points. On the case of time spent by the CSRs on the phone for calls that they handled versus calls that they sent to the BAs, this can be classified as one of the seven wastes under the lean production (Abdullah, 2004). Specifically waste for waiting. Instead of spending that much time on calls to and from the BAs, alternatives that focus on reducing the waiting on phone for response can be used. For example text messages and emails could be used, which will require less time in waiting for response to be given. Since emails and text messages are less interactive between communicating parties, it could save much time and guarantee efficiency at work. On the case point of CSRs giving priority to new incoming calls over callbacks, this can be said to be misplaced priority that undermines the process capabilities of the workplace. Once there is such undermining of process capabilities also, effectiveness becomes affected (Meredith and Shafer, 2014). Clearly, new calls come with much enquiry which require a lot of attention, explanations and feedback. Callbacks on the other hand have solutions to problems. As recommended earlier, there can be other forum for new inquiries, for example through the use of emails and text messages so that after finding appropriate responses, those who made the enquiries can be contacted by the CSRs. On the third case point about BAs giving priority to Database Update sub-process over researching calls escalated by the CSRs, it is important to note that such limited priority to calls escalated by the CSRs can bring about deviation from targets, which is against the principle of the six sigma (Labovitz and Rosansky, 2007). It is said that this situation would lead to deviation from targets because once there is escalation of calls from the CSRs, the time to be