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Economically rational network companies may prefer wait-and-see behaviour that could lead to structural underinvestment.
Economically rational investments have a feasible return on investment within a reasonable term.
(Paradoxically, unions raise worker wages, but strikes generally don't). Given the negative economic consequences lost paychecks for workers and lost business for employers the economically rational thing for both sides is usually to settle before the walkout starts.
Given the negative economic consequences — lost paychecks for workers and lost business for employers — the economically rational thing for both sides is usually to settle before the walkout starts.
That would be economically rational.
Is this an economically rational choice?
And those choices aren't always going to be economically rational — witness Merkel's recent tergiversations.
"I am rooting for an economically rational deal," Mr. Schmidt said.
It has become economically rational to invest a lot in player training.
But a cost-benefit analysis suggests that, in many cases, such programs are also economically rational.
The case seems to be that what is economically rational is politically unacceptable.
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Justyna Jupowicz-Kozak
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