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Lou_Duran

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"In Memoriam: Armen Alchian (1914 – 2013)"
« on: March 06, 2013, 01:37:12 PM »
This post is prompted by Brad Klein's fine article linked in the "Trump at Doral" thread and PPallotta's keen observations in reply.  

I was purposefully away from the news and the internet on a cruise when Professor Alchian passed and just learned about it this morning.   A devoted golfer, clear thinker, and gifted writer, he penned a piece long ago which might be of interest to some on this site.  It is linked in the article linked below (an opinion piece which appeared in the Wall Street Journal).

http://perc.org/blog/memoriam-armen-alchian-1914-2013


JMEvensky

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #1 on: March 06, 2013, 02:09:51 PM »
The opinion piece was great but I'm not sure his ideas on stroke play v. match play will have a big following here.

Gib,was he right about golf in post-Soviet Armenia?

Jim Sherma

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #2 on: March 06, 2013, 02:11:39 PM »
When I saw this post I recognized the name but could not fully place it. Once I read the link I remembered reading a few papers by Alchian back in graduate school and how interesting it was to think of information asymmetry and search costs.

The article on golf that it links through to is well written and similar to the way my dad spoke of the game when I was growing up. I do believe that the game has slowly moved from the acceptance of the "Randomness of fortunes in golf". Clearly how courses are presented and also what architectural extremes relative to the available equipment are accepted as fair have changed through the years (On this point I am thinking of Tillinghast's essay on the 18th at garden City and how players achieved huge numbers being unable to get out of the bumkers with the available equipment - I really doubt a course would be deemed acceptable and remain unaltered of players were taking double digits on a mid length par three).

Thanks for posting this.

Jason Topp

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #3 on: March 06, 2013, 02:16:52 PM »
Thanks Lou.  Next time you are in a divot, I will remind you of the opinion piece.

Lou_Duran

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #4 on: March 06, 2013, 07:38:05 PM »
Thanks Lou.  Next time you are in a divot, I will remind you of the opinion piece.

If I whine, by all means, please do so.  It takes really poor conditions for me to put my hands on the ball until it's on the green.  Though once in awhile a bad lie influences poor execution with disastrous results- e.g. at the 2012 Dixie Cup hitting a fat 9-iron off a thin lie into the lake on the 18th hole to lose the match 1 down- I can think of many more which forced me to bear down and hit my most memorable shots.  Like life, golf is not uniformly fair.  How we respond to the many "rubs of the green" we all encounter impacts our view of the world and of ourselves.

   

Mark Pearce

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #5 on: March 07, 2013, 04:08:24 AM »
An interesting read and one that really appealed to my 16 year old son, who intends to read economics at university and is currently an information hoover for anything economics related.  The combination of economics and sport hit a real sweet spot with him.  Thanks for posting.
In June I will be riding the first three stages of this year's Tour de France route for charity.  630km (394 miles) in three days, with 7800m (25,600 feet) of climbing for the William Wates Memorial Trust (https://rideleloop.org/the-charity/) which supports underprivileged young people.

Colin Macqueen

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #6 on: March 07, 2013, 05:31:53 AM »
Gentlemen,
I was very taken with this piece of writing and took the liberty of transposing it holus-bolus as that way it may be more widely read.
I hope so as it is a very entertaining piece! I always enjoy it when a writer ties golf to some other "discipline" whether it be religious, spiritual, philosophical, sociological, economics or whatever.  Good fun.

Lou I hope you don't mind my making this piece a tad more available.
Mark, It can now be copied, pasted and referenced for yer boy very easily!

Cheers Colin

The following was originally printed on the editorial page of the Wall Street Journal sometime in the early 1970's. It was written by Armen A. Alchian, a professor of economics at the University of California, Los Angeles.

OF GOLF, CAPITALISM, AND SOCIALISM

A puzzle has been· solved. Despite their intense interest in sports, no golf courses exist in the Socialist-Communist bloc. Why is golf solely in capitalistic societies? Because it is not merely sport. It is an activity, a lifestyle; a behaviour, a manifestation of the essential human spirit. Golf's ethic. principles, rules and procedures of play are totally capitalistic. They are antithetical to socialism. Golf requires self-reliance, independence, responsibility, integrity and trust. No extenuation is granted misfortune, mistake or incompetence. No second chance. Like life, it is often unfair and unjust, with uninsurable risks. More than any other sport, golf exploits the whole capitalist spirit.

A golfer is his own creator, his own destroyer. He plays his own ball. It is a contest against Nature, by, and yet against, himself.   No scapegoat can be found - no socialising of skill or consequences. No opponent's or partner's skill or clumsiness affects his performance. Tennis has an opponent on·whom one can rely for aid or error. Football ,with many partners and many opponents, is more socialistic.

Randomness of fortunes in golf, as in life and investment, defies specification, calculation, or insurance.   Rolling into a divot mark, getting a bad bounce or lie in a bunker is part of the game. The game even has a name.for this un­fairness - "rub of the green". Like illness or disaster it is to be borne without relief. The unfairness of golf is like that of capitalism Some risks and hazards are foreseeable. Bunkers, trees, lakes and wind cunningly offer a rewarding or disastrous gamble or test resistance to temptation. A golfer plays his own style and reaps his own rewards - or consequences. Whatever causes misfortune makes no difference. He alone bears the consequences. No socializing of disaster or success.

No second chances. Every stroke counts in golf. In other activities, second and even third chances are given. Two serves in tennis, two free throws to make one- in basketball, three strikes in baseball, four downs in football. In golf no later act or good fortune will cancel earlier misfortunes; but later misfortune will cancel earlier good performance.

Honor and integrity are always at stake.   A golfer monitors himself with no possibility for a stroke to be uncounted.   Any temptation to dishonesty is thwarted by the impossibility of lying to one's self successfully. You live with what you do, not with what you may say you did. No umpire calls errors; no umpire judges performance. The game is purely objective. A stroke was taken or it wasn't; the ball is out of bounds or it isn't; on the green or it isn't;  in the cup or it isn't.   .
How elegantly one performs is irrelevant. No A's for effort - only for results. Only the number of strokes counts, not how you did it. Results - not intentions, or procedure - count. How thoroughly capitalistic.

The game is unreliable. Disaster strikes in the midst of good performance. Confidence is shaken. Was it luck? Deterioration in ability? What change could be made, if any? As in capitalistic society, those persisting questions are answered privately with responsibility for consequences yours alone. The reward for good performance - whether by real skill or good luck - is insecure. If due to increased skill, a new reference base is established, and elusive improvement remains the goal. To do better - always better ­ is the goal. How powerfully capitalistic and antisocialist.
Antisocialist, but not antisocial. More. it is individualist and civilized. A golfer is courteous to other golfers. He does not distract others from their best play. He does not gain - and more important - does not lose by success. or failure, of others.   ­
Golf is conservative. Rules change slowly; some never. Ancient and honor­able customs must enhance survival values if they have withstood the test of time.
The socialist spirit, so pervasive in other areas has tried to invade golf. Handicaps are proposed to equalize results. But a true golfer shuns handicap play. At best it is to him only an index - a prestige - of ability. Efforts to make competition more equal or "fair" are diseases that would have killed a less capitalistic game. The socialists have also sought to reduce the penalties for misadventure - the two-stroke penalty for a ball out-of-bounds or lost.    A two-stroke penalty for a ball lost because of poor eyesight or because of weeds was deemed unfair.   But not by the true golfer who under­ stands the reasons.   The   game withstood that attempt and the conventional penaty has been restored.

Match play was introduced to permit partners or opponents to save one from himself. But the true golfer plays for his own score. What his playing companions do is of no interest, either during or after play.

Even·in the beginning of golf we have evidence. Who but the Scots, the progenitors of Adam Smith, could create a game so congenial to the capitalist society and mentality. And at this end of history, who, have become the most recent and avid devotees of golf? The Japanese and nationalist Chinese. Is more evidence required to demonstrate that golf is the spirit of capitalism?

Looking into the dim future, if golf is ever to enter in the rifts of the socialist bloc, surely it will be where the latent, but suppressed, capi­talistic spirit is strongest - in the·valleys of Soviet Armenia.   Actually, seven courses exist in Czechoslovakia, holdovers from World War II society with 1,000 members - only 160 per course. Is it surprising the Czechs are the most troublesome people now behind the curtain?
"Golf, thou art a gentle sprite, I owe thee much"
The Hielander

Lou_Duran

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #7 on: March 07, 2013, 11:19:15 AM »
Lou I hope you don't mind my making this piece a tad more available.

None at all.  I was hoping that it would be of interest to the group and perhaps broaden the discussion a bit.

"Rules change slowly; some never. Ancient and honor­able customs must enhance survival values if they have withstood the test of time."
 
Does this resonate with any of you?  Thomas Sowell has been writing about it for years in a larger political context.

Lynn_Shackelford

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #8 on: March 07, 2013, 12:15:03 PM »
Great stuff.  Apparently he would play a quick 9 at Rancho Park back in the day before arriving at campus for his lectures.  Additionally kept his scorecards from his many rounds he played when he traveled.
I never met him or took his classes.  Too bad I was too young to understand, and appreciate him.  It would have been a lifetime memory to play a round with this man.
It must be kept in mind that the elusive charm of the game suffers as soon as any successful method of standardization is allowed to creep in.  A golf course should never pretend to be, nor is intended to be, an infallible tribunal.
               Tom Simpson

Gib_Papazian

Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #9 on: March 07, 2013, 02:59:14 PM »
His idea that golf would catch on in Armenia has never come to pass - largely because the nation is still struggling with Muslim oppression and economic blockades from Turkish interests. One of the major difficulties since 1992 has been to eradicate the criminality and graft endemic to all former Soviet satellite countries behind the Iron Curtain.

I think that Armenians in America, Lebanon and around the world somehow thought we were culturally immune - and that once the communists were driven out, the country would instantly turn to a lawful, organized, Parliamentary nation.

The truth is that organized crime, violence and corruption has infiltrated every corner of Armenia - really a tertiary effect of an ongoing war with Muslim backed Azerbaijani rebels. Not much time for golf. I think there is one short 9-holer in the whole country right now.

Alchian was correct that Armenians are almost genetically programmed for a game like golf. The Central Valley has several thousand Armenian golfers - 99% who like to play for a little jing. Sunnyside Country Club barred Armenians for decades - derisively called "Fresno Indians." I think my Uncle Bill's (Saroyan) books and plays turned the corner and brought us out of 2nd class citizen status.

Kings River CC (Neal redid their bunkers) has a large Armenian membership; I spent an afternoon there a year or so ago. The clubhouse bar is a riot - backgammon, dice, cards . . . . . we're a pretty social group. Armen would have fit right in.
« Last Edit: March 07, 2013, 03:11:50 PM by Gib Papazian »

Lou_Duran

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Re: "In Memoriam: Armen Alchian (1914 – 2013)"
« Reply #10 on: March 08, 2013, 12:41:03 PM »
One of the major difficulties since 1992 has been to eradicate the criminality and graft endemic to all former Soviet satellite countries behind the Iron Curtain.

I think that Armenians in America, Lebanon and around the world somehow thought we were culturally immune - and that once the communists were driven out, the country would instantly turn to a lawful, organized, Parliamentary nation.

The truth is that organized crime, violence and corruption has infiltrated every corner of Armenia - really a tertiary effect of an ongoing war with Muslim backed Azerbaijani rebels. Not much time for golf. I think there is one short 9-holer in the whole country right now.

We visited several former Soviet-bloc countries (Slovakia, Hungary, Croatia, Serbia, Bulgaria, and Romania) this past fall and found what Gib notes above to be true.  Many of the same folks who ran these countries before simply rebranded and are in control again.  Corruption, crime, cronyism, intimidation are part of everyday life, while Soviet subsidies and protections from competition are gone.  Unemployment throughout the region is extremely high and even the young people are dispirited (we were told that many of the aged are nostalgic for the "old times" of no liberty but a minimal level of security).  Serbia seemed to be somewhat of an exception, where our local guides expressed some optimism for the future and little ill will toward the U.S. for bombing its cities during the late '90s.

Just like Gib states about Armenia, golf is not even an afterthought in these countries.  When one has great difficulty just trying to meet his most basic needs, golf and all "three legs of the sustainability stool" are little more than affectations of the bourgeoisie.  Most of us are blessed with a choice ranging from a nice $20 muni to a fantastic $350 Trump "World's Best" public access.  A good question might be- can we "sustain" what we currently have?  If one subscribes to the Dire Straits ("money for nothing and the chicks for free") school, some disappointment awaits.  Me, I think Professor Alchian (and Maggie Thatcher-  "The trouble with socialism is that eventually you run out of other people's money.") had it about right.

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