Discussion Prompt: In class, we discussed Economic Power and how we can use the
ID: 1120875 • Letter: D
Question
Discussion Prompt: In class, we discussed Economic Power and how we can use the Exit, Voice, Loyalty game for understanding when individuals (or organizations) have economic power (or not) and when they can use their economic assets to get what they want. For your initial post, browse a major newspaper for an article that discusses some issue surrounding an economic asset (such as a natural resource, a skill held by some employee, foreign aid, real estate holdings, a fctory, money, etc.), and analyze the likely economic power of the asset holder in the situation described iri the article using the logic of the Exit, Voice, Loyalty game. Your initial post should do the following: 1) provide a link to your article; 2) summarize the scenario (what is the economic asset under discussion? who owns or holds that economic asset? what does the asset holder want, and from whom?): 3) explain what kind of economic asset it is (i.e. fixed or liquid), and whether the asset holder is likely to have a credible exit threat for that asset in the scenario described; and 4) using the logic of the Exit, Voice, Loyalty game, explain whether the person who has the economic asset is likely to get what they want (i.e. if the asset holder wants something, does the asset give them leverage or power over the person or organization that can give it to them? are they autonomous of or dependent on the asset holder?) In other words, given what you know of the EVL game, what outcome is likely to occur here?Explanation / Answer
http://www.thestate.com/news/local/article184494963.html The economic asset under discussion is Congaree River in South Carolina. The river has been contaminated by SCE&G. The Congaree River coal tar is a byproduct of a manufactured gas plant that once operated on Huger Street above the river. River protection advocates are demanding that SCE&G clean up a slick of contaminated coal tar from the Congaree River. Coal tar is riddled with toxic pollutants, including benzene, that can be dangerous to people and wildlife. Benzene can cause cancer under certain conditions. Also, kayakers who have stepped in the tar have complained of a burning sensation on their skin. Pollution in Congaree River could give the city a bad image and hurt Columbia’s emerging outfitter businesses. The asset holder (Congaree river association) wants the SCANA Corporation to clean the river. The economic asset under discussion is Congaree River which is a fixed asset and Congaree river keepers have a credible exit threat as SCANA Corporation have violated Federal laws. The river protection board is likely to get what they want as they have legal right on it. In a letter to SCE&G’s parent corporation, SCANA, attorneys for the Congaree River keeper said the Cayce-based utility’s failure to get rid of the coal tar violates federal hazardous waste laws. The Congaree River keepers are using the voice strategy to threaten SCANA Corporation to clean the river.