Sunday, April 26, 2015

The power of marginal improvements

This blog has long argued that the cumulative effect of numerous small reforms and improvements can be dramatic. This assumes greater significance in systems where the low-hanging fruits have been plucked or decisional reforms implemented. Consider this,
UPS estimates that a savings of one minute per day per driver increases profit by $14.5 million over the course of a year.
All this and more from an excellent essay by Tyler Cowen and Alex Tabarrok on how technological advances have bridged information asymmetry and thereby lowered the resultant market failures.

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