http://organizationsandmarkets.com/2010/07/18/de-gustibus-non-est-disputandum/ Economics of organizations, strategy, entrepreneurship, innovation, and more Sun, 12 Feb 2012 08:11:55 +0000 hourly 1 http://wordpress.com/ http://organizationsandmarkets.com/2010/07/18/de-gustibus-non-est-disputandum/#comment-80472 Thu, 29 Jul 2010 08:34:20 +0000 http://organizationsandmarkets.com/?p=9597#comment-80472 [...] “De Gustibus Non Est Disputandum”? [...]

]]> http://organizationsandmarkets.com/2010/07/18/de-gustibus-non-est-disputandum/#comment-80393 Wed, 21 Jul 2010 20:11:08 +0000 http://organizationsandmarkets.com/?p=9597#comment-80393 In strategy and marketing heterogeneity of preferences is pretty important. If one is interested in firm (or competitive) heterogeneity or sustained competitive advantage how actors vary in their preferences and utility functions can still be explored. The basic problem of allowing preferences and utility functions (and beliefs for that matter) to vary across actors is that it greatly complicates the theory and can lead to trivial seeming conclusions. The latter because as is often pointed out, you can explain almost anything if everyone wants different things. Danny Miller and I address some of the preferences/utility function issues in a very simple agency theory model discussing ownership concentration and family business.

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