Armen Alchian and Bill Meckling on Goals and Incentives

And the men of Kharkov and Karachi are not different from the men of Kalamazoo. The specific objects of wealth and power may differ between Kalamazoo and Kharkov. But if Kalamazoo teems with thieves and brigands while Karachi is serenely industrious, the explanation lies not in differences in goals. Differences in goals will not explain differences in the way individuals pursue those goals.

This is from William H. Meckling and Armen A. Alchian, “Incentives in the United States,” American Economic Review 50 (May 1960): 55-61, reprinted in The Collected Works of Armen A. Alchian, Vol. 2, Property Rights and Economic Behavior.

I’ve been working on a chapter on Alchian and property rights in a short book on the UCLA School. (Steve Globerman, a fellow UCLAer, and I are writing it for the Fraser Institute.)

So I’ve been going though the Collected Works volume published by Liberty Fund.

So what does explain differences in the way people pursue their goals. The answer is in the title of their piece: incentives.

 

 

 

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My dialogue with Freddie Sayers of Unherd, on herd immunity and related matters

It is about fifteen minutes, and also I give you all a separate clip of me praising the new Matt Yglesias book (which was alas cut from the main edit, note there is a lag before the short clip pops up) and discussing “family capacity libertarianism.”  Here is the main episode, with a few clips […]

The post My dialogue with Freddie Sayers of Unherd, on herd immunity and related matters appeared first on Marginal REVOLUTION.

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