Alvin Kerber

math and computers and stuff

I just learned about a subfield of economics called Public Choice Theory. Apparently it tries to explain how governments and bureaucracies work as distinct from competitive markets. I wonder to what extent they consider the role of power as a currency within these institutions. Monetary utility is I suspect not always the best way to consider interactions and transactions within a firm, especially when people’s basic needs are already addressed. (This is generally the case for almost all decision-makers of importance within a large bureaucratic body, as far as I know.) Such an analysis would likely extend to large private corporations as well, especially those with substantial monopoly power.