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Public versus Private Initiative in Arctic Exploration: The Effects of Incentives and Organizational Structure

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  • Jonathan M. Karpoff

Abstract

From 1818 to 1909, 35 government and 57 privately funded expeditions sought to locate and navigate a Northwest Passage, discover the North Pole, and make other significant discoveries in Arctic regions. Most major Arctic discoveries were made by private expeditions. Most tragedies were publicly funded. Public expeditions were better funded than their private counterparts yet lost more ships, experienced poorer crew health, and had more men die. Public expeditions' poor performance is not attributable to differences in objectives, available technologies, or country of origin. Rather, it reflects a tendency toward poor leadership structures, slow adaptation to new information, and perverse incentives.

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  • Jonathan M. Karpoff, 2001. "Public versus Private Initiative in Arctic Exploration: The Effects of Incentives and Organizational Structure," Journal of Political Economy, University of Chicago Press, vol. 109(1), pages 38-78, February.
    • Handle: RePEc:ucp:jpolec:v:109:y:2001:i:1:p:38-78
    DOI: 10.1086/318602
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    10. Machiel Mulder & Victoria Shestalova & Mark Lijesen, 2005. "Vertical separation of the energy-distribution industry; an assessment of several options for unbundling," CPB Document 84, CPB Netherlands Bureau for Economic Policy Analysis.
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