Doug Henwood wrote:
>
> This sort of analysis always ignores the immense waste in a "market"
> system - advertising, management, market research, vast markups
> thanks to brand fetishism, search costs, financiers' take, etc.
> Capitalist firms are hardly immune to all the perverse incentives you
> list too. Why would Michael Jensen have had to theorize managerial
> waste and suggest leveraged buyouts as their cure if competitive
> product markets were so elegantly self-regulating?
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Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901