3min chapter

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Robin Hanson - The Long View

Dwarkesh Podcast

CHAPTER

The Profit Maximization of Firms

If firms adopted using prediction markets for their internal decisions, you would expect them to become more successful and over the long run become dominant. So I have a post somewhere whose name is escaping me where I list 20 some odd different facts, things that firms are doing that don't seem to be maximizing profits. It doesn't mean firms are profit maximizing across many margins. Let's talk about many organizations have a long view on some margins, but how many areas are they taking a long view? The first approximation of firms is as a form or battlefield in which different political coalitions fight.

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