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What Economists Know That Managers Don’t (and Vice Versa)

Harvard Business Review

In this worldview, disasters only happen because the rules of the game in which the businesses operate must be flawed. Since capital is like air to other markets, problems with the financial sector can have important effects on the rest of the economy, a version of the market failure referred to under the rubric of externalities.

article thumbnail

What Economists Know That Managers Don’t (and Vice Versa)

Harvard Business Review

In this worldview, disasters only happen because the rules of the game in which the businesses operate must be flawed. Since capital is like air to other markets, problems with the financial sector can have important effects on the rest of the economy, a version of the market failure referred to under the rubric of externalities.