3 ms·
Except it didn't actually work out. It worked out at the time, and thus was "perfectly rational" then but rationality should not have a limited time horizon bec
by noobermin 4y ago
Except it didn't actually work out. It worked out at the time, and thus was "perfectly rational" then but rationality should not have a limited time horizon because then it is limited. This is the problem with short-term thinking, it eventually leads to loss.
- wahern 4y agoWhat value is there in corporations being immortal? That is, why forego substantial and easy profits merely to exist as the same corporation further down the road? There are transaction costs to creating and building a corporation, but do those offset the clear costs of leaving money on the table, especially in the modern world of highly liquid capital, and particularly in markets with clear technological breaks. The lesson of the Innovator's Dilemma is that very often the perfectly, unqualifiedly rational decision is to press your advantage to the very end. And importantly it not only maximizes short-term profits, but implicitly it maximizes long-term profits globally by most efficiently allocating resources. Why waste energy swimming upstream when there are endless fish spawning and starting their journey upstream already along with ample resources of their own.
- chongli 4y agoThere isn't anything particular about a company being immortal. The issue is now. No one wants to be there when a company is dying. There's nothing heroic about "going down with the ship" in the corporate world.