Acquisition Talk cover image

Programmed to Fail - 10. Culture

Acquisition Talk

CHAPTER

The Importance of Local Knowledge in Contracts

The Department of Defense's management systems were designed to limit opportunism rather than harness local information. The effect is to stimulate a bureaucratic culture, mired in checking and rechecking decisions. If the principal can trust the agent not to exploit the opportunism recognized to pervade the contract, then a much wider range of exchanges are allowed to take place.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner