The Invisible Hand

How does society “decide” what stays within the Organisation and so falls under the purview of the boss and what is bought and sold on the market? The answer from an economist is whatever maximizes efficiency. Competition for customers will favour whoever or whatever, org or market, does the most with the scarce resources available. For a businessman, the choice between market and Organisation is survival of the cheapest. But making that calculation can be much harder than you might think. ~ Fisman and Sullivan, 2013

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