What Economists Know That Managers Don’t (and Vice Versa)
Harvard Business Review
NOVEMBER 6, 2014
Not for the highly-regarded work on competition between small numbers of firms with which his career began more than thirty years ago but for more recent work on how carefully structured regulation can improve performance relative to unbridled market forces. Bailouts — not just the ones after the crisis but also prior ones, such as that of Long Term Capital in 1998 — aggravated the problem of “moral hazard” that informational imperfections can engender.