4 ms·
I don't think discussing about the shape of the cost function is necessarily irrational. Let's say you've inherited a small fortune that includes a mansion. Th
by Gravityloss 6y ago
I don't think discussing about the shape of the cost function is necessarily irrational.
Let's say you've inherited a small fortune that includes a mansion. The mansion's upkeep is slowly eating away the fortune. What do you do? You can rationally make some scenarios how to deal with it. Maybe you sell it. Maybe you rent it out. Maybe you invest in it and start a hotel.
- vanderZwan 6y agoWe're not talking about markets and cost functions as a general abstraction here, we're talking about the specific context of adjusting company behavior.
- Gravityloss 6y agoI'm not sure I understand your point. It doesn't really matter which industry sector does the improvements as long as the total improves. Doing it with free market ensures that they happen where they are cheapest.