Rothbard Quote of the Day: Theory and History
Updated: 2010-07-30 20:02:24
| Peter Klein | I stumbled recently upon this passage from Murray Rothbard’s review of Unemployment in History by the distinguished historian John A. Garraty. Rothbard’s review, published in 1978, raised an issue that has come up in previous discussions of the Freakonomics phenomenon (1, 2, 3, 4): Can a little theory, without accompanying real-world [...]
| Peter Klein | Busenitz and Barney (1997) famously argued that entrepreneurs (founders) are particularly susceptible to overconfidence and representativeness biases. Compared to professional managers, entrepreneurs systematically overestimate the probability that a new venture will succeed and tend to draw unwarranted generalizations about the future from small samples. Overconfidence is now one of the major [...]
| Peter Klein | Now that passions are cooling regarding the BP disaster, it’s time to bring organizational issues into the discussion. 1. Everyone knows about the liability caps and the role they may have played in encouraging moral hazard. Just as bank deposits are guaranteed by government deposit insurance, and large banks themselves are [...]