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

Harvard Business Review

The section on the profit maximization hypothesis at the end of the introductory chapter of his classic 1988 textbook on industrial organization concludes by saying that even if a firm doesn’t maximize profits, it can be treated, for the purposes of many of its interactions with the outside world, as if it does. Even Tirole betrays this bias.

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

Harvard Business Review

The section on the profit maximization hypothesis at the end of the introductory chapter of his classic 1988 textbook on industrial organization concludes by saying that even if a firm doesn’t maximize profits, it can be treated, for the purposes of many of its interactions with the outside world, as if it does. Even Tirole betrays this bias.

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7 Ways to Improve Operations Without Sacrificing Worker Safety

Harvard Business Review

I thought immediately of BP and the other industrial giants whose “accelerating cost reductions” had disastrous consequences. These kinds of statements speak to a leader’s choice of values, and a failure to understand the relationships between a safe work environment and operational performance.

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What are the Best Working Capital Loan Options in 2019?

Strategy Driven

If you are operating a start-up, you may face problems with managing the cash flow of your business efficiently and may have to rely on working capital loans. Working capital loans are not utilized for long periods or the purchase of noncurrent assets due to their short repayment period.

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Use Big Data to Create Value for Customers, Not Just Target Them

Harvard Business Review

But in the rush to uncover and target the next transaction, many industries are quickly coming up against a disquieting reality: Winning the next transaction eventually yields only short term tactical advantage, and it overlooks one big and inevitable outcome. There is no sustainable competitive advantage in chasing the next buy.

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The Real Challenge to Turkey’s Economy Isn’t Terrorism

Harvard Business Review

Turkey can’t rely on the current price stability buffer long-term, but it is helping now. This still renders Turkey as a good base of operations for many international businesses that are invested in the Middle East, Balkans, and the Caucasus – inherently high-risk areas. It covers roughly 70% of Turkey’s GDP.

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Incremental Fixes Won’t Save the U.S. Health Care System

Harvard Business Review

secretary of health and human services, is a fierce and long-time critic of the Affordable Care Act (ACA), including initiatives that restructure how some doctors are paid. By contrast, the consequence of staying in their fee-for-service world is minimal in the short term. Accelerate value-based pilots.