Know-how and X-inefficiency: Difference between pages
imported>Doug Williamson (Created page with "1. ''Law - European Union (EU) - UK - technology transfer agreements''. For the purposes of regulating technology transfer agreements, EU and UK law define know-how as: :...") |
imported>Doug Williamson m (Layout.) |
||
Line 1: | Line 1: | ||
A term from economics referring to a firm's tendency not to maximise output from its installed equipment, systems, or personnel as simple economic theory might suggest. | |||
It is often explained by agency costs as managers pursue their own objectives not the interests of shareholders. But sheer human failing may also be important. | |||
X-inefficiency may also be applied by extension to an industry or to a whole regional or national economy. | |||
An X-efficient firm may, of course, not be allocatively efficient - producing the "right" outputs using the best mix of inputs to produce them. | |||
'''Reference:''' Leibenstein, Harvey ("Allocative Efficiency vs. X-Efficiency", American Economic Review 56(3), June 1996, pp 392–415) is normally taken as the source of the term X-efficiency. | |||
==See also== | |||
* [[Agency theory]] | |||
*[[Efficient market]] | |||
== See also == | |||
* [[ | |||
* [[ | |||
Revision as of 11:07, 9 January 2019
A term from economics referring to a firm's tendency not to maximise output from its installed equipment, systems, or personnel as simple economic theory might suggest.
It is often explained by agency costs as managers pursue their own objectives not the interests of shareholders. But sheer human failing may also be important.
X-inefficiency may also be applied by extension to an industry or to a whole regional or national economy.
An X-efficient firm may, of course, not be allocatively efficient - producing the "right" outputs using the best mix of inputs to produce them.
Reference: Leibenstein, Harvey ("Allocative Efficiency vs. X-Efficiency", American Economic Review 56(3), June 1996, pp 392–415) is normally taken as the source of the term X-efficiency.