December 7, 2011
- Ashwin, as is his wont, elucidates the mechanisms of crony capitalism at Macroeconomic Resilience: “The cause of the investment deficit is an increasingly financialised, cronyist, demosclerotic system where incumbent corporates do not face competitive pressure to engage in risky exploratory investment…Investments in process innovation require the presence of price competition within the industry. Investments in exploratory product innovation require not only competition amongst incumbent firms but competition from a constant and robust stream of new entrants into the industry.”
- Alex Tabarrok on his new ebook (it’s short and good), Mancur Olson, demosclerosis, Paul Romer and the higher ed bubble.
- “Competition is merely the absence of oppression.” The corollary is that competition in governance with a constant and robust stream of new entrants will decrease oppression.