Jason Smith — The replication argument

Summary:
A very simple reason that there may be decreasing returns to scale is transaction costs increasing for a variety of reasons, some of which may not be well explained. Scaling up micro to the macro level risks running into the fallacy of composition since systems operate differently at different scales — as J. M Keynes observed with the paradox of thrift.Information Transfer Economics The replication argument Jason Smith

Topics:
Mike Norman considers the following as important: fallacy of composition, returns to scale, transaction cost

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