Re: [Pen-l] The Mirage of Economic Efficiency

["Jim Devine" <jdevine03@xxxxxxxxx>]

Michael Perelman wrote:
> Almost 70 years ago, George Stigler introduced the
> concept of flexibility. A business might be highly
> efficient, but it may not have the flexibility to meet
> changing conditions. Stigler.s point is largely
> ignored. I would prefer that other parts of his work
> were ignored, but I do not have much say in such
> matters.

Michael,

it's good to make it clearer what you mean by efficiency. In
economics, it basically means getting the most benefits for the costs
paid. In that case, flexibility can be efficient, since it can promote
benefits. In fact, there would likely be an "optimal" degree of
flexibility.
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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