John D. Rockefeller's Standard Oil Company

Jason Lee

Mrs Schaffer

Econ

2012/10/25

John D. Rockefeller's Standard Oil Company

John Davison Rockefeller (July 8, 1839 – May 23, 1937)  once was called the richest man in history, achieve his height by establish a monopoly on standard oil.  Rockefeller formed his company Standard Oil of Ohio in 1870, which at that time made lots of profits as car was just getting popular. It soon became the most profitable refiners in the US. Rockefeller gradually takes control of 90% of oil refinery by  horizontal integration, then through vertical system Rockefeller controls every aspect of oil from production. Therefor granting him the monopoly in the oil industry. Standard’s most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates.These successfully denies entry of other competitors but also earn a bad reputation for the Standard Oil company. Rockefeller worked hard through his life to achieve to his heights. His intelligence in economics is just one of many reasons he was successful in the Standard Oil monopoly.  In 1890 the Sherman anti trust act was created to broke up union but later focused on breaking Standard oil. Which lead to Ohio separated from the Company. The Standard oil company was not seriously affect by it, they are still making maximum interest. Until 1911 the supreme court of  the united states found Standard oil company  violated the Sherman anti trust act and thus ordered to be broken up into 34 separate company. Rockefeller, 72 years old still hold 25% of the company stock. When the company split, he sold his stocks and receive portions of shares from the 34 company. In the end, Rockefeller gained about 900,000,000 dollars.




Sources: http://en.wikipedia.org/wiki/John_D._Rockefeller
http://www.spartacus.schoolnet.co.uk/USArockefeller.htm

How might incentives be used to encourage volunteer work and community service?

Jason Lee

Schaffer

Econ

2012/10/16

Econ Homework

       

        In this chapter we learned about how incentive is used and what can incentive make people do. By applying what we learned, how might incentives be used to encourage volunteer work and community service?

        There are multiple ways to achieve this goal, at an economic stand point no one is going to work for without any benefits. Money is not the only way to encourage people to work. Like the book says “beggars in India injures themselves or their children deliberately in order to gain the sympathy of passersby and thus increase their income”. By presenting the problem and desperate need of the place which need volunteer work, plays the sympathy card. Which encourage people to help out. Other ways would be presenting as a contest, imprinting in peoples mind that this is not just helping out it is also a chance to gain fame. Fame, like money is also an effective way to attract peoples. The more amount of community service completes the more the rewards and tiles an individual can get.

        Work without direct benefits such as volunteer work is usually harder to get support from the people. By using incentive, the people will be encouraged to help out because it is no longer without benefits.