Exploring Schumpeter's theory of creative destruction in contrast to Galbraith, emphasizing the vulnerability of oligopolists to extinction. The chapter discusses failed companies and critiques the narrow focus on game theory in modern business education.
Thomas McCraw of Harvard University talks about the ideas of Joseph Schumpeter from his book, Prophet of Innovation: Joseph Schumpeter and Creative Destruction. McCraw and EconTalk host Russ Roberts discuss innovation, business strategy, the role of mathematics in economics, and Schumpeter's vision of competition embodied in his most important idea--creative destruction.