X-Efficiency Theory: 2
In the last chapter we focused on the psychology of the individual, as if he were a Robinson Crusoe. In this chapter we will investigate: (1) the individual as a group member; (2) group behavior; and (3) some elements that comprise the external environment and that influence the firm’s degree of X-efficiency. We will begin with the individual as a group member.
KeywordsEffort Level Golden Rule Customer Class Firm Member Allocative Inefficiency
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