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> and there are myriads of examples of companies optimizing for profit and still going bust. Do you mean there are myriads of example of companies who say that
by randomdata 2y ago
> and there are myriads of examples of companies optimizing for profit and still going bust.
Do you mean there are myriads of example of companies who say that they are optimizing for profit, but don't actually follow through in their actions? Humans do, indeed, have a penchant for saying one thing and then doing another. But if they are truly optimized for profit, how could they possibly go bust?
- mkbosmans 2y agoIt is not an unconstrained optimization problem. The constraints in which the company operates might result in a feasible region where even the most profitable point is still a net loss. Those constraints may of course be self-imposed, like e.g. choosing a market to operate in.
- randomdata 2y ago> It is not an unconstrained optimization problem. Of course not. The constraints are exactly what you optimizing against. Choosing to operate in a market that is not capable of supporting profitability is not optimizing for profitability, though. One may claim to be optimizing for profitability, but actions speak louder than words.