
Technology IPOs
25 Nov 2014 Leave a comment
in financial economics, industrial organisation, survivor principle, technological progress Tags: financial economics, IPOs


The Effective Decision – Peter Drucker
12 Nov 2014 Leave a comment
in entrepreneurship, industrial organisation, managerial economics, organisational economics, personnel economics, survivor principle Tags: effective decisions, Peter Drucker
1. Classifying the problem. Is it generic? Is it exceptional and unique? Or is it the first manifestation of a new genus for which a rule has yet to be developed?
2. Defining the problem. What are we dealing with?
3. Specifying the answer to the problem. What are the “boundary conditions”?
4. Deciding what is “right,” rather than what is acceptable, in order to meet the boundary conditions.. What will fully satisfy the specifications before attention is given to the compromises, adaptations, and concessions needed to make the decision acceptable?
5. Building into the decision the action to carry it out. What does the action commitment have to be? Who has to know about it?
6. Testing the validity and effectiveness of the decision against the actual course of events. How is the decision being carried out? Are the assumptions on which it is based appropriate or obsolete?
Hayek on the central role of personal disappointment in economic progress
20 Oct 2014 Leave a comment
in applied price theory, entrepreneurship, F.A. Hayek, industrial organisation, survivor principle Tags: competition as a discovery procedure, FA Hayek, market process, profit and loss

HT: David Henderson
Robots will take my job alert: when musicians campaigned against the introduction of canned music into cinemas
28 Sep 2014 Leave a comment
in economics of media and culture, human capital, industrial organisation, labour economics, labour supply, survivor principle, technological progress Tags: automation, creative destruction, mechanisation, technological unemployment, The Great Enrichment
Henry Hazlitt on wise bureaucrats and farsighted politicians
21 Aug 2014 Leave a comment
in applied price theory, comparative institutional analysis, entrepreneurship, liberalism, Public Choice, rentseeking, survivor principle Tags: fatal conceit, Henry Hazlitt, pretence to knowledge
“Trapped” in Rental Contracts | Organizations and Markets
17 Aug 2014 Leave a comment
in applied price theory, Armen Alchian, comparative institutional analysis, entrepreneurship, industrial organisation, Ronald Coase, survivor principle, theory of the firm Tags: long-term contracts, mutual dependency, relationship dependent assets, transaction costs, vertical integration

- Mercedes and BMW drivers trapped in lease contracts, rather than buying their cars with cash or credit
- Individuals trapped in wage and salary contracts, rather than raising the capital, arranging the inputs, and bearing the uncertainties to be sole proprietors
- Companies trapped in outsourcing agreements, rather than owning all upstream and downstream production processes directly, as vertically integrated firms
- Vacationers trapped in resort hotels, rather than owning their own vacation condos or timeshares
- Readers trapped by downloading and reading books on their Kindles, essentially “renting” them from Amazon, rather than buying physical books
- Movie fans trapped in DVD rental agreements with Netflix, rather than owning massive DVD libraries
via “Trapped” in Rental Contracts | Organizations and Markets.














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