What Economists Know That Managers Don’t (and Vice Versa)
Harvard Business Review
NOVEMBER 6, 2014
But what many economists generally gloss over is a notion that I will argue is highly complementary to market failures: management failures. In this worldview, disasters only happen because the rules of the game in which the businesses operate must be flawed. Businesses and management experts, in contrast, tend take the opposite position. For instance, poor decisions by managers at a company will be of more concern if the company is one of a few or, even worse, a monopoly.