the circular economy explained

Much of the economy in the industrialized world is dependent on cheap and easily-available resources as well as fossil energy. Such a dependency is largely grounded in the belief that continuous economic growth is not only possible but also necessary. Accordingly, consumption is intended to perpetually expand. The products generated by such a system lack … Continue reading the circular economy explained

the principal-agent problem: what it is, why it’s important, and how it can be solved

The principal-agentĀ problemĀ is a common problem that arises whenever there is a contractual relationship between two parties - the principal, who in accordance with agreed upon terms, assigns a task to an agent, who then executes the task for the principal. It is expected that the agent will work on the behalf of the principal. Likewise, … Continue reading the principal-agent problem: what it is, why it’s important, and how it can be solved

business clusters: what they are and why they provide a competitive advantage

Have you ever wondered why Wall Street is known for finance or why the California wine industry has been so successful in integrating itself into the global market? In a word: clusters. Clusters are concentrations of complementary organizations, institutions and companies that are components of a given field in a specific geographic location. These conglomerations … Continue reading business clusters: what they are and why they provide a competitive advantage