Blog
One Article, Two Discussion Points
9th February 2013
When introducing my students to the theory of the firm, I'm keen to get them thinking about what motivates decision-making in all sorts of firms, and get them thinking about whether, even at schools, people always make decisions based on the best interests of the organization.
"The Org" by Ray Fisman and Tim Sullivan is excellent on this sort of discussion of institutional architecture, and I wonder what they would make of the current situation at Boeing where problems with the new Dreamliner are discussed in the article below:
Guardian: Boeing Warns Dreamliner Customers to Expect Delay
Lots to consider here, not least the effect on the Boeing brand. However, I recall reading in a book on the use of the Internet, that mistakes are inevitable, it is how a company responds to them that is the important thing.
The other joy for any economist, though is the photograph associated with the article. It screams one thing: economies of scale.
