Averch–Johnson effect
id:
averch-johnson-effect-182-14250088
title:
Averch–Johnson effect
text:
The Averch–Johnson effect is the tendency of regulated companies to engage in excessive amounts of capital accumulation in order to expand the volume of their profits. If companies' profits to capital ratio is regulated at a certain percentage then there is a strong incentive for companies to over-invest in order to increase profits overall. This investment goes beyond any optimal efficiency point for capital that the company may have calculated as higher profit is almost always desired over and
brand slug:
wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Averch%E2%80%93Johnson_effect
date created:
2006-12-11T20:42:58Z
date modified:
2024-09-06T12:00:07Z
main entity:
{"identifier":"Q601490","url":"https://www.wikidata.org/entity/Q601490"}
image:
fields total:
13
integrity:
14