Abstract
Bureaucracy in both businesses and governments continues to grow despite its unpopularity. Falling transport and communication costs have created global markets. The rising relative importance of firms with new technologies and methods often unsuited to market transfer via licensing of patents has given rise to multinational corporations with transnational bureaucracies. Government bureaucracies typically produce indivisible goods contributions to which by individual bureaucrats cannot be measured, giving rise to red tape and enabling bureaucracies to exploit society’s demand for their products. Bureaucracies may not be highly efficient, but market failures that give rise to them also make them inevitable.
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Olson, M. (2018). Bureaucracy. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_435
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DOI: https://doi.org/10.1057/978-1-349-95189-5_435
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