Why Most Things Fail: Evolution, Extinction and EconomicsWith the same originality and astuteness that marked his widely praised Butterfly Economics, Paul Ormerod now examines the “Iron Law of Failure” as it applies to business and government–and explains what can be done about it. “Failure is all around us,” asserts Ormerod. For every General Electric–still going strong after more than one hundred years–there are dozens of businesses like Central Leather, which was one of the world’s largest companies in 1912 but was liquidated in 1952. Ormerod debunks conventional economic theory–that the world economy ticks along in perfect equilibrium according to the best-laid plans of business and government–and delves into the reasons for the failure of brands, entire companies, and public policies. Inspired by recent advances in evolutionary theory and biology, Ormerod illuminates the ways in which companies and policy-setting sectors of government behave much like living organisms: unless they evolve, they die. But he also makes clear how desirable social and economic outcomes may be achieved when individuals, companies and governments adapt in response to the actual behavior and requirements of their customers and constituents. Why Most Things Fail is a fascinating and provocative study of a truth all too seldom acknowledged. |
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Page ix
... problems persist . Policies fail . Two examples will suffice . Despite decades of governmental activity to promote integration , residential areas in many western countries remain strongly segregated along racial lines . For many years ...
... problems persist . Policies fail . Two examples will suffice . Despite decades of governmental activity to promote integration , residential areas in many western countries remain strongly segregated along racial lines . For many years ...
Page 1
... problems in terms of co - ordinating and organizing the operations of these vast entities . In British social history , this is known as the Edwardian period , after Queen Victoria's son who himself reigned in the opening decade of the ...
... problems in terms of co - ordinating and organizing the operations of these vast entities . In British social history , this is known as the Edwardian period , after Queen Victoria's son who himself reigned in the opening decade of the ...
Page 9
... problem facing trade associations , namely , the incentive for any individual member to renege in secret on the deal and to cut its prices . The precise details of the laws need not concern us , but they gave ingenious companies the ...
... problem facing trade associations , namely , the incentive for any individual member to renege in secret on the deal and to cut its prices . The precise details of the laws need not concern us , but they gave ingenious companies the ...
Page 18
... problems which exercise management are swept away . Rather , they are never mentioned at all . Despite this , economists have an irritating habit of claiming the discipline is the first to explain anything worth knowing about how the ...
... problems which exercise management are swept away . Rather , they are never mentioned at all . Despite this , economists have an irritating habit of claiming the discipline is the first to explain anything worth knowing about how the ...
Page 19
... problems to a set of easy formulas . Leading figures like Tom Peters offer beguiling sets of simple rules . Business - school thinking has fallen into the trap of standard economics : everyone can use the same rules and prosper . But ...
... problems to a set of easy formulas . Leading figures like Tom Peters offer beguiling sets of simple rules . Business - school thinking has fallen into the trap of standard economics : everyone can use the same rules and prosper . But ...
Contents
1 | |
17 | |
Up a Bit Then Down a Bit | 36 |
Making Sense of Segregation | 58 |
Playing by the Rules | 77 |
A Game of Chess | 100 |
The BestLaid Schemes | 118 |
Doves and Hawks | 140 |
The Powers That Be | 169 |
Take Your Pick? | 189 |
Resolving the Dilemma | 202 |
Why Things Fail | 211 |
What Is to Be Done? | 222 |
Suggestions for Further Reading | 241 |
Index | 247 |
Patterns in the Dark | 155 |
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ability able American average behave behaviour biological species bounded rationality cent chapter chess companies competition completely concept connections consumers context countries curve decades decision described dramatic economic theory economists empirical equilibrium evolution evolve example existence external extinction events extinction rate fail failure Figure firms fitness for survival fossil record game theory George Akerlof Gini Gini coefficient happens human impact income increase individual agents industry interactions marginal cost mathematical maximizing million move Nash Nash equilibrium Nobel Nobel Prize nomic observe outcome output particular patterns perfect competition period play players plot population power law Prisoner's Dilemma problem racial random rational reality relationship rules segregation shocks simply single social and economic species becoming extinct Stephen Jay Gould strategy success supply and demand theoretical tion twentieth century uncertainty unemployment whole words