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jsalvatier comments on Bias in capital project decision making - Less Wrong

40 Post author: jsalvatier 26 May 2011 06:06PM

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Comment author: jsalvatier 27 May 2011 06:01:43PM 0 points [-]

This was my first thought as well, which is why I started trying to think up creative ways firms could get more capital, including employee investment in particular projects. However, unless outsiders are extremely wary of industrial firms, these constraints should only apply when a firm is expanding its investment very very quickly, so high MARRs would only be a transient feature, not the norm.