Where I live, farmers lobby for and get subsidies precisely because people think they're affected too much by market discipline.
-
-
-
yeah rent seeking rules errything around me :(https://twitter.com/eigenrobot/status/1037049659347349506 …
End of conversation
New conversation -
-
-
haven't read this yet (on my list), but relevant:https://twitter.com/davidmanheim/status/1033684807635660800 …
-
I'd argue that "market discipline" might be helpful, but it can't overcome fundamental limitations imposed by the difficulty of scaling large orgs. (Purpose is lost quickly, then orgs drift towards simple survival mode and principle-agent conflicts takes over.) cc:
@drethelin -
imagine "market discipline" might have lots of minor helpful effects, but the main one I had in mind is that firms usually need to provide a desirable good in order to generate revenue Guess the obvious retort contains the phrase "rent seeking" which maybe is what this is about
-
industries with low margins probably have a lot more “market discipline” than high margin companies like google or Apple
-
Yes, survival mode leaves a different amount of room for misalignment in different industries.
End of conversation
New conversation -
-
-
It happens in every firm! Firms don't have proper markets within them. People are doing a lot of inefficient and counter-productive things. Market discipline is more about expelling bad firm from the market.
-
Firms are often not allocative efficient contra typical models. Some people even invented a funny thing for this, X-efficiency. https://en.wikipedia.org/wiki/X-inefficiency …
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.