|I manage a baseball team. I suppose that an adult-league baseball team could pretty much figure out how to operate without a manager, but there are a few things that might transpire. For one, other teams as roving bandits would in a sense rob and pillage the unmanaged team. Without organization or strategy, a team wouldn't operate as a single unit. Another occurance is that the team without a manager may not see the incentive in acquiring uniforms. If a team does want uniforms, then they'd probably have to each be responsible for purchasing their own which could mean that they may NOT be uniform, OR it would incur some transaction costs of higher per-item price with whatever purveyor of uniforms than if they were bought in a group. Also, there is implied that one or few people would have the burden of ordering/purchasing/collecting funds... which is what a manager does! |
As manager, I am able to plan ahead and bring $60 per game for umpires and then collect whatever appropriate amount is necessary of each player. As well, I can organize a line-up that utilizes strategy for game play. It might be assumed that batting order may have positional value by different players and thus arguments may ensue taking away from focus that can otherwise be channeled to playing ball. As manager, I could exercise my strength to sit some players on the bench while playing other players. As long as I maintain an empirical interest in the team's welfare, I won't be suseptible to influence by the best 9 players to exclude the worst 5 players... in other words, I government could fight against the tyranny of the majority and thus prevent scoliosis from occurring on my team.
There could be an incentive for me to be a stationary bandit which would spread the cost of the team/players fees across every player (other than myself) so as to have MY portion of the fees be absorbed, but that would be borderline predatory. Other issues of good management by I government would include encouraging prosperity. I personally see an incentive in the prosperity of my players because in turn, I as a manager of a WINNING ball club reap the benefits of prosperity. A problem may come into play when players may attempt to use me against other players; knowing that allowing this to occur would tear my team apart, I exercise my power, my authority with the prosperity of the team in mind. Therefore, I maintain as unbiased as possible, yet, I establish and maintain authority while offering incentives that are in line with my agenda. An agenda that is shared by every member of the team, including myself: win games!
This application of "undercover economics" is at the back of my mind whenever I am in a position to use my power as a manager, as a governor, of our baseball team. Perhaps I'm a little influenced by Mancur Olson, but what do you expect when I am left to my own devices regarding economics and we happen to be reading with in-depth comprehensive analysis material that questions power and prosperity in terms of economics, incentives and governance?!