EOI board member Stan Sorscher takes a an insightful look at a new form of market failure: “group-think”:
Markets are powerful and efficient. Markets fail.
Engineers study failure. When we design a structure or a system, it is our professional obligation to account for known failure mechanisms, and produce a robust, practical, safe design. We don’t rely on invisible hands.
Economists will quietly and reluctantly acknowledge several conventional mechanisms for market failure.
The housing bubble and financial crisis illustrate a new mechanism, which we should add to our list of failure modes — market failure by “group-think.”
Read more on Huffington Post.
Stan Sorscher is a member of EOI’s Board of Directors. The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of the Economic Opportunity Institute.
More To Read
April 26, 2024
What is WA Cares and Why Does It Matter for Washingtonians?
We need to defend this important policy from billionaires looking to save a buck
April 17, 2024
2023-24 Impact and Gratitude Report
Reflecting on a year of progress and transition at Economic Opportunity Institute
April 12, 2024
Welcoming our New Executive Director, Rian Watt!
EOI is excited to begin its next chapter under new leadership