Chapter 8

1. Thibault and L. Walker (1975).

2. Subsequent researchers, such as Tom R. Tyler and E. Allan Lind, demonstrated the power of fair process across diverse cultures and social settings. See E. A. Lind and T. R. Tyler (1988) for their research and an overview of related work.

3. For a discussion on voluntary cooperation, see C. O'Reilly and J. Chatman (1986), D. Katz (1964), and P. M. Blau (1964).

4. See discussions in F. Herzberg (1966).

Appendix A

1. For a discussion of "creative destruction," see Joseph A. Schumpeter (1934; 1975).

2. New York Times (1906).

3. Literary Digest (1899).

4. Bruce McCalley (2002).

5. William J. Abernathy and Kenneth Wayne (1974).

6. Antique Automobile Club of America (2002).

7. Alfred P. Sloan (1965):150.

8. Mariana Mazzucato and Willi Semmler (1998).

9. Lawrence J. White (1971).

10. Economist (1981).

11. Sanghoon Ahn (2002).

12. Walter Adams and James W. Brock (2001), Table 5.1, Figure 5-1: 116-117.

13. Andrew Hargadon (2003): 43.

14. International Business Machines (2002).

15. Regis McKenna (1989): 24.

16. A+ Magazine (1987): 48-49; Fortune (1982).

17. Otto Friedrich (1983).

18. Ibid.

19. The IBM was priced a little more than the Apple ($1,565 versus $1,200), but it included a monitor, and the Apple did not.

20. History of Computing Project (accessed 28 June 2002).

21. Financial Times (1999).

22. Hoovers Online (accessed 14 March 2003).

23. Digital History (2004).

24. Screen Source (2002).

25. Interestingly, a 1924 poll asked moviegoers what aspects of a cinema appealed to them most; 28 percent cited the music, 19 percent the courtesy of the staff, 19 percent the comfort of the interior, and 15 percent the attractiveness of the theater. Only 10 percent mentioned the films (R. Koszarski, 1990). And 24 percent of exhibitors surveyed in 1922 said that the quality of the feature film "made absolutely no difference" to success at the box office; what mattered, they said, was the surrounding program (ibid.). In fact, cinema advertisements at the time tended to give as much print to the music as they did to the films. With the introduction of sound technology in films in 1926, the importance of live music at the cinema (a band or orchestra and the associated costs) was dramatically reduced. Palace Theaters, with their elaborate decor, luxurious environment, and services such as valet parking, were well placed to take advantage of this shift for more than ten years, until Americans began heading to small-town suburbs in droves following World War II. 26. Screen Source (2002).

Appendix B

1. The structuralist school of IO economics finds its origin in Joe S. Bain's structure-conduct-performance paradigm. Using a cross-industry empirical framework, Bain focuses mainly on the impact of structure on performance. For more discussions on this, see Bain (1956, 1959).

2. F. M. Scherer builds on Bain's work and seeks to spell out the causal path between "structure" and "performance" by using "conduct" as an intervening variable. For more discussions, see Scherer (1970).

3. Ibid.

4. See Joseph A. Schumpeter (1975).

5. Ibid.

6. For more discussions on the new growth theory and endogenous growth, see Paul Romer (1990, 1994) and G. M. Grossman and E. Helpman (1995).

7. For detailed discussions on competitive strategy, see Porter (1980, 1985, 1996).

8. See Kim and Mauborgne (1997a, 1999a, 1999b).

9. See Joseph Schumpeter (1934) and Andrew Hargadon (2003).

Appendix C

1. For discussion on the potential of increasing returns, see Paul Romer (1986) and W. B. Arthur (1996).