An Associated Press writer says that businesses to retain earnings "become more productive; they found ways to produce the same level of goods or services with fewer workers." I thought the competitive market forced firms to do than all the time, not just when earnings fall. Could it be that economists need a more refined behavior model to explain this? Could it be that firms satisfice most of the time, until some frame makes them breakout of the status quo?
LSJ May 14, 2010
Wednesday, June 16, 2010
BP execs say spill was an aberration, as if that excuses their ineptitude and lack of preparation. These things are what one author calls Black Swans, rare events that if they happen have disastrous consequences. What one learns from them is that you need a back up plan if it happens.